Insurance coverage of busted pipes and water damage

[Justin Pace]

Hi everyone, I have a property in Huntsville Alabama that recently had a few pipes burst. This caused some leaks that soaked the carpet and got under some linoleum all of which had to be replaced.

I am now talking to the insurance company and I am reading more into the dwelling insurance that we have. My impression is that insurance would cover the cost of the floor replacement (provided that this is a covered loss). However, I saw a blurb about actual cash value replacement which the insurance company could choose to cover instead of the replacement cost. Is this only an option in landlord policies? If the insurance company wants to pay cash value and the appraisal comes in lower than my cost to replace is there any recourse to get the replacement value?

This is also my first time dealing with an insurance claim so any guidance/knowledge you can give me is greatly appreciated!

[Dena Puliatti]

You could also pay for the work yourself and claim it as a loss on your 2023 taxes.  Depends on your deductible and how much damage the quote comes to.