Don't Rush to Deduct

Here is a tip from a CPA who has been through a disaster himself. In his own words, "For more than 20 yrs. John has assisted taxpayers who experience disasters I experienced the 1994 Northridge Earthquake first-hand I have a unique professional perspective on the process of recovery from a disaster."

The tip is "Don't Rush to Deduct." More details can be read here:
http://www.accountantfordisasterrecovery.com/2011/09/are-you-entitled-to-large-tax-loss.html

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7 Key Steps Every Homeowner Must Take Before Hiring A Contractor

The prospect of renovating a home is both exciting and challenging in that your vision for a beautiful outcome is often tempered with, "so where do we start?" And that's a good beginning, but the most important question should be, "what do we need to know to make sure we get it right?"

Flip to page 14 of this online magazine to see the "7 Key Steps Every Homeowner Must Take Before Hiring A Contractor"
http://www.cover2coverpublications.com/publication/?i=77372

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CARe Presents: A Survivor's Guide to Insurance

It's been twenty years in the making and taken a year of concentrated effort, but now we're proud to present Disaster Recovery: A Survivor's Guide to Insurance. Writing a book is something we've always wanted to do so when the opportunity presented itself to us, we jumped on it.

We’d like to thank the San Diego Foundation for major funding in support of this project, as well as the generous individuals [yes, that would be you] whose donations to CARe funded the balance of the project. We’d also like to extend our appreciation to the volunteers who took time from their busy schedules to do an initial draft review of this guide.

We cannot forget to acknowledge the County of San Diego, The Regional Community Recovery Team of San Diego, which we were able to participate in after the 2003 and 2007 firestorms in San Diego, and the CRT for their support. Last, but certainly not least, we would like to thank Deena Raver for helping to initiate support for this project.

Besides the 100+ pages of information, illustrations and task lists, you can read some never before published background information on how CARe came to be.

The download will be available for free, but we are currently also working on a published book version that should be available soon. To read the book for yourself, click HERE! Please also feel free to forward the link to people you know who are in need.

Two Year Deadline

With the two year anniversary coming up for Station Fire survivors, we would like to remind them of the two year deadline to replace property that was extended to them due to California laws regarding State Declared Disasters.

According to California Insurance Code § 2051.5, when the insurance company must only pay the policyholder the Actual Cash Value (ACV) of your property when the claim is made, the policyholder has two years (instead of one) to claim the actual cost to replace the item (often referred to as Replacement Cost Value or RCV) once the item has been replaced.

For example, say you had a couch that you estimated would cost $2,000 to replace, but the insurance company only gave you $1,250 as the ACV. Once you actually replaced the couch, you found the actual RCV was $2,145.35 and you have a receipt for the item at that cost. If you have a replacement cost policy, the $895.35 difference can be recovered from the insurance company if your claim was not closed by legal negotiations and you have not yet reached the limits for the coverage in question (which in the example is the personal property coverage). Send copies of your receipts to the insurance company documenting the difference and request a check for the held back depreciation.

You should be aware that the deadline isn’t two years from the date of the loss, but the law specifically states two years “from the date that the first payment toward the actual cash value is made.” Now would be the time to get out copies of the first checks they paid for each coverage so you can properly calculate your deadline.

If there are items that will still need to claim after the two year deadline, you can write a letter requesting an extension. The law states, “Nothing in this section shall prohibit the insurer from allowing the insured additional time to collect the full replacement cost.”

Sample Letter

Thank you for assisting us in returning to normal following our loss.

We are making claim for full replacement cost value under the [personal property, dwelling and other structures, if available] coverage of our policy within two years of our loss. Our loss occurred [DATE] and your first check was dated [DATE].

We intend to completely repair, rebuild or replace our lost personal property and dwelling. Please extend these policy requirements an additional year. Please let us know, in writing, within 15 calendar days.