63-Room, 30,000-Square Foot Mansion
Burns to the Ground

The owners bought this house for $900,000 only 3-1/2 months before the fire, and it was in poor condition.

The owner's original public adjuster wasn't qualified to assess the damage. The public adjusting firm's construction expert figured $5.9 Million to rebuild the mansion. Even the insurance company's construction expert estimated it would cost only $1.8 Million to rebuild. Because of the house's unique architecture and complexity, and because they didn't have the requisite experience, they both guessed at replacing the mansion by using the square foot method of estimating the cost. Needless to say, the insured was not satisfied.

Kenneth Browne, The Public Adjusters' Vice-President and Executive General Adjuster, was retained by a New York law firm to prepare a detailed replacement cost construction estimate of the damages to this mansion. He prepared a detailed estimate that included all the architectural ornate detailed woodwork, millwork, baroque plaster finishes, marble, stone, trim, and more, which included some 21 fireplaces, 10 chimneys, and all the items included in the 63-room house on a room by room basis. He came up with an estimate, encompassing some 7,000 unique line items to rebuild the house exactly the way it was before the fire with exact materials of like, kind, and quality. The estimate—$17.5 million.

Settlement: $9.0 Million - Actual Cash Value!

10 times what the insureds paid, and they still own the land.

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