Laserfiche WebLink
<br />I <br /> <br />I <br />I- <br /> <br />structure and thus when claims arose the value of contents and structure <br /> <br />would be available in the claim file. But this was not the case. It is <br /> <br />felt that those that did not carry insurance, purposely omitted carrying <br /> <br />I <br /> <br />it for one of three reasons. The first is that they valued their contents <br /> <br />very low. The second reason is that possibly they assumed that their con- <br /> <br />I <br />I <br /> <br />tents could be moved to a higher elevation either within or without of the <br /> <br />structure when floods were impending. This is probably especially true with <br /> <br />basement structures. Thus, in order to conduct such loss-avoidance activity, <br /> <br />I <br /> <br />the amount of material to be moved was probably small and probably not of <br /> <br />I <br /> <br />great value. The third reason is that the purchase of flood insurance many <br /> <br />times is not voluntary. Those that are forced to buy flood insurance (for <br /> <br />I <br /> <br />structure only) when obtaining Federal or Federally related financing are <br /> <br />often times buyers with few possessions and large mortgage payments, <br /> <br />Ie <br />I <br /> <br />One can make the reasonable assumption that the actual cash value of <br /> <br />the contents which are uninsured, but are in insured residential structures <br /> <br />is $8,000 per structure. Using this value for the more than five thousand <br /> <br />I <br /> <br />uninsured contents, then results in the actual cash value of single family <br /> <br />residential contents being equal to 40% of the actual cash value of the <br /> <br />I <br /> <br />structure, The author believes this to be a reasonable ratio for use in <br /> <br />I <br /> <br />the Denver area for single family residential structures. <br /> <br />For 2-4 family residential structures, the average content value is <br /> <br />I <br /> <br />about $3,000 higher than for single family residential structures. This is <br /> <br />believed to be an error. Sonle of the policies probably cover just one unit <br /> <br />I <br /> <br />whereas, others may include the contents of all four units, To remedy this <br /> <br />~ <br />I <br /> <br />deficiency, the actual cash value of contents within other than 1-4 family <br /> <br />residential structures can be considered. The ratio of the contents from <br /> <br />28 <br /> <br />I <br />