Insurance claim settlement

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  #1  
Old 04-17-14, 04:24 PM
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Insurance claim settlement

Anyone else have any experience like this...

Wife and I flew back from St Croix last Fri. Dead, dragging ass tired by the time we actually got home from LV, so almost straight to bed. The next morning we started to unpack luggage and she said, "oh, guess TSA inspected". Then noticed every make-up bag was open and contents dumped, clothes all shuffled around. Found all her jewelry (35 yrs worth) was missing. Yeah I know...not a good idea to pack it.

I'll spare you the details of dealing with the [email protected]#$% *&^%$ airline, but we filed a claim with our homeowners insurance with an estimated value (mostly from remembered purchase prices for some items) of a bit over $3000. Claims Rep called the same night and wifey spent a long time on the phone explaining what happened and going over each item listed (that we could remember).

She called back the next day and told wifey she was sending a check for almost 5 GRAND, and that was after the deductible!

Wow! When has an insurance company ever payed more than you expected?

I had to fight tooth and nail with an airline (I know, not an insurance company) 30 yrs ago to replace my guns that were stolen, and it was completely their fault.

Agent said my rate may go up some, but only for 3 years decreasing each year. She also said, maybe it won't since I've been with the company for 25 yrs and the last claim was for storm damage almost 20 yrs ago.
 
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Old 04-17-14, 05:45 PM
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Wow, great news, I'm sure. Good to see things swing for the normal guy for a change.
 
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Old 04-17-14, 06:26 PM
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Hate the loss and violation, esp of her Moms custom made ring that shes had since her Mom died very young, but since we sold one vehicle and the other is a 10 y/o POS, the money will come in very handy.
 
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Old 04-17-14, 06:35 PM
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We had an older couple who were victims of a burglary luckily while they were out of town. Dipsticks stole his purple heart and other medals and certain porcelain items given to her by the emperor of Japan a long time ago. Items too hot to pawn, but they were stupid enough to try. Never made it back to their car. Did not pass "go".
 
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Old 04-17-14, 06:44 PM
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I have been hearing A LOT of reports of things going missing through baggage handling. I can't believe they are not cracking down on this more. I suspect the insurance company will file a claim against the airport or airline to recoup their money.
 
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Old 04-17-14, 07:09 PM
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Wow that is good news and even if they do go up some it probably will not be much. I doubt you have anything to worry about with your insurance though. The only reason you would is if you had excessive claims. I have heard the same thing unfortunately about airline baggage handlers. Most of the airlines though have security cameras all over the place so they might catch the thief. Getting those things back though now that the insurance company is involved well that is another matter.

Just for your information though many things stolen end up online on a website called Propertyroom.com. Just go here Online Auctions for Jewelry, Watches, Coins & Bullion, Electronics, Fashion, Fine Art, Vehicles,Cars and More! Great Deals, Buy Now | PropertyRoom.com and explain to them what was stolen and then they will e-mail you back. Just look for the contact us link at the bottom of the page. I am sure they will want pictures and you can send them in a reply back. This is a online auction run by retired police officers. I buy occasionally from them but I am not intending this as an advertisement. They will work hard to get your property back if they get it.
 
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Old 04-17-14, 10:35 PM
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Well, we're assuming it was most likely St Croix. It was out of our possession for about 1 1/2 hrs before we picked it up to run through the TSA scanner, and from there it went straight to the plane. I highly doubt they have much in the way of security there. We had an almost 2 hr layover in Miami, so thats possible as well, but a much busier airport with more people around. It's probably mostly in some guys girlfriends jewelry box as we speak.

Funny thing is, the airlines state in their regs they aren't liable for electronics, cash, jewelry (etc) or any other high value items. But yet they state the max is $3400. Those would have to be a heck of a lot of socks and underwear. Shoot, what about those people with $1000 pieces of luggage.

Guy my SIL works with (Youth Probation Officer) said he used to work baggage at LAX when he was younger and everyone stole out of luggage, including HIM!

Cop at LV said there were 2-3 reports every day, but it was impossible to catch anyone unless you had pics, serial numbers, etc and it was pawned locally. He even said though they have cameras all over, the employees know the dead spots and don't have to use metal detectors or anything as they come and go. Something about union rules and that it wouldn't be effective as they could just dump it in a trash can and have someone else retrieve it later. He also said, the airlines don't seem to care, they just write their regs to cover themselves.
 
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Old 04-18-14, 03:58 AM
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When has an insurance company ever payed more than you expected?
My son's previous 2 cars where totaled out by uninsured drivers so his insurance had to pay. The 1st one was a collector type sports car and he had to fight tooth and nail to get a 1/3rd of what it was worth He replaced it with a run of the mill Honda, when it was totaled the same ins co paid him double what he had in it He had to pay the high risk premium after those 2 claims
 
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Old 04-18-14, 08:48 PM
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Forgot to ask one important question...are insurance settlements of this type taxable? I don't think so, but I'd rather plan for it now than find out next year.
 
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Old 04-18-14, 08:57 PM
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I think it is taxable unlike life insurance which as I understand it is not taxable. I would check with a tax specialist to be on the safe side.
 
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Old 04-18-14, 09:41 PM
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yeah...I may just search the IRS website or call them. Saw something about not taxable cause it makes you whole again...but then I saw if you got more than your cost you owed on the diff. Well...I have a year to figure it out.
 
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Old 04-19-14, 04:00 AM
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I'm fairly sure it's only taxable IF you realize a profit. If the insurance check is more than the original cost of the items, then the excess is taxable.
But I'm no tax expert, didn't even sleep at Holiday Inn last night
 
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Old 04-19-14, 09:52 AM
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Yeah, that's the way I read one part of the IRS rules, but since some of this stuff was 35 y/o...and cost $100 or so back then, it would cost way more to replace it now. I mean, gold was under $200 an ounce back then...now its over $1600.

I'm looking at it kinda like the new car replacement that some insurance companies have. You know, where if your new car is totaled in the first 2 years, they will replace it with one a year newer? So yer actually making a profit due to depreciation. And the IRS pubs don't talk much about jewelery. Even when I found something that did address it, it was confusing. If you replace what was stolen, but have money left over, you may need to pay tax on that. If you don't replace it, you may have to pay tax on the adjusted basis, but everything talking about adjusted basis only talks about real property...not personal property. Geeez

I'll probably just stop by a local accounting/tax guy that handled some issues for me a few years ago and ask. Not like I need to worry about it for 11 1/2 months.
 
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Old 04-19-14, 11:42 AM
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I agree you have plenty of time and think asking a professional is the best thing you can do. If he charges you for his services that is deductible
 
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