Old timber barn and appraisal

[lightboy363]

Hi, New here.

I have a question, I have lived in my house for 20 years and have the original appraisal and a couple from refinances. I have a late 1800's early 1900's timber barn, 35x45. When I bought the property there was shingles and siding missing off the barn, ( bought the property for the house, not the barn ). I was never able to insure ( as a structure ) because of it's age and shape. I have also been here when the appraisal company's were here and they told me they don't use old barns like that in a appraisal. Now the question, all appraisals state barn under amenities, but no size or value was given as the house and garage sizes and a value were put on the appraisals. Now after 110+ years the barn collapses under snow load, and I find out I have a rider on my insurance that covers external structures up to a certain amount, ( 21000.00 ) for the barn. Because off all the fraud with insurance my mortgage company had to be a endorser on the check. They claim they have interest in the barn as it is listed with no value, they also called it a pole barn. Now they want me to build the same, but if the size and value are not on the appraisal do they have interest? Again, been told old barns like that are not used in a appraisal, and my bank is holding 2/3 of the money. And yes I am building a new pole barn, just not that size as the old barn was never really usable in it's shape. I also want to add the original appraisal said the barn appeared to be used as a garage, second appraisal mentions nothing and the last appraisal states ( Functional taken for buyer resistance to older barns), which nobody understands that statement. I keep rambling on, 2 out of 3 don't even show a picture of the barn, showing the appraisal service is not interested.

Thanks for your help
Jon

 

[JTip]

Ask the bank to apply the WHOLE amount towards your principal.

Build a new pole barn with your own money, if you really want/need one.

Refinance with ANOTHER bank.

 

[lightboy363]

The problem I have is the the bank/mortgage company states they have interest on a 110+ yo barn that no value was given on a appraisal. I am probably going to hire a lawyer and fight this to hells end.... And also I thought about them putting the money to the principle but my mortgage and insurance is and has always been up to date and it is money owed to me to build something...

 

[CANative]

If the barn is part of the real property and they hold the mortgage then of course they have an interest in all of the real property.

What the appraiser determines the contributory value of the barn to be has no bearing on this.

 

[lightboy363]

Well, I have talked to 200+ people about this and they don't agree. If this is the case, BANK COME GET IT, it would take 150000.00 to rebuild that old barn. So appraisal people just have a job, they don't have to know what they are appraising? American way now a days. If I build a new pole barn of smaller footprint it would be worth a hell of a lot more than that old rikkity thing...

 

[JTip]

First, it is not your money.

The insurance policy is for the 'named insured' (you) and 'additional insured' (the bank). You are not the sole owner of the home, you have an interest in the property and so does the bank. Any claim paid on the policy will be paid to the named insured and any additional insured.

Next, they will not write you a check for $21,000. This is the amount you have available to replace the barn with 'like kind' materials. One cannot 'reproduce' a 100 year old barn exactly so the insurance company will build you one, with modern materials and design, to have the same utility and function as the old barn.

If you choose to take cash, then the insurance company will pay an 'actual cash value' which could end up being a very small percentage of the coverage due to the age, condition and remaining economic life of the barn.

If you research your mortgage paperwork, I can guarantee there is wording that addresses any property damage claim and how it must be addressed.

The insurance claim and the results of the claim payment has absolutely ZERO to do with the appraisal(s), original or any past/present refinance. Nothing.

 

[lightboy363]

Ok, to speak lightly, here is what I am looking at. 20 years and 3 appraisals and none mention a value or size on the barn, as the house and garage do on the appraisal's. Appraisal company's stated to me there is no value to add to the appraisal from that barn ( they didn't want to look at ). The bank, when I told them they had no interest in the barn wanted to instantly pull the appraisal. When they called back they said they needed the insurance estimate and when I asked if they could tell me the size of my house, garage and property they said yes, when I asked if they could tell me the size of the barn they said no. When I asked what they wanted me to build they said per your insurance estimate you need to build what you had. The insurance adjuster was there for less than 5 minutes and was more concerned about contents as she knew the barn had no value as so did the insurance company when I called in the claim ( for contents only ). I have been told for 20 years the barn never had value to the property. I called the insurance for a contents only claim and they fessed up to a rider insurance. I don't mind putting up a new pole barn, I just don't like the fact they are telling me to rebuild what I had ( per insurance estimate ) when it never had any value to the property, and the insurance estimate included 2x4's and 2x6's to rebuild, that barn has TRUE 6x6's and TRUE 2x6" ( red oak at that ), not available in this area any more. The insurance estimate is way off.


And to add to your comment they will not write you a check . 7 years ago, ( although a different insurance company ) I had the roof blow off my garage due to straight line winds. the insurance company wrote me, me only, a check for 9000.00+ to repair, no questions asked, no inspection no nothing, garage was fixed and there was enough to go get a few beers.

 

[JTip]

Maybe try to read my post again. Your questions are already answered.

Let's get to the final unasked question.

What do you want done?

 

[lightboy363]

As I see from the appraisers, the barn has no value. I want to build a smaller footprint pole barn that adds more value to the property and is useful to me. I been here 20 years and don't plan on moving. But when the bank says build what you had, I have a problem when it was never of value on a appraisal. That's my point. I paid for the appraisal and it should back it up. But if they want me to rebuild what I had they can have this place...

 

[Tim The Enchanter]

The insurance claim and the results of the claim payment has absolutely ZERO to do with the appraisal(s), original or any past/present refinance. Nothing.

I agree with this, the old appraisals have nothing to do with the claim.

If insurance is going to pay for a new better barn, what's not to like?