home damage insurance claim

[Mike C.]

I had a similar situation and handled it by creating an expense account
and a liability account.  The funds I received from insurance were
credited to the liability account and debited to the checking account. 
Some insurance reimbursements were received before the repairs were
started.  When I paid for the repairs I debited the liability and
credited  the checking account to the extent there were funds in the
liability account.  When there are no remaining funds in the insurance
reimbursement liability account, then when I paid for a repair I debited
the expense account and credited the checking account.  In this manner
the expenses are only what you really paid for and there is no income
which is the case when it comes to tax time.
Just another way of handling it.
Mike

On 4/12/2012 11:55 PM, Paula Hendricks wrote:
> i do this all the time with specific jobs and reimbursable expenses: i create an income account (called whatever, say Income: window repair) and then i create an expense account (Expense: window repair)... then i track the monies that way,,, coming in and going out... and then in the notes section of the transaction window i can be more specific... and you can have sub-accounts if needed, like for the window itself or the furniture. depending on how many layers of information are truly needed/ helpful.
>
> i hope this helps
>
> 	ph
>
> ~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~
> paula hendricks ~:~ cinnabar bridge communications
> writing ~:~ photography ~:~ book design
> san francisco ~:~ 415.975.0950
>
> On Apr 12, 2012, at 8:13 PM, Maria Iano wrote:
>
>> We had a water leak causing damage to our home and I am wondering how best to track the expenses and insurance claims.
>>
>> Our insurance company gave us 2 checks so far, one for contents and one for repairs. We have a provision to replace as new. What that means is that initially the insurance company gives us a check for the replacement/repair cost minus depreciation. After we provide receipts showing we replaced the item or did the repair they then give us a check for the depreciation they previously subtracted. We don't have to do the repair or replacement, and they are happy for us to take the check minus depreciation in that case.
>>
>> We have a $1000 deductible. I actually paid that to the mitigation company directly. The mitigation company sent the rest of the bill to the insurance company so I never saw that and therefore feel I don't need to track it. There are some other bills going directly to the insurance company as well, and I'm currently planning to ignore those as well.
>>
>> Meanwhile, how do I record the checks I have received so far? As I pay contractors for the repairs and buy replacement furniture, how do I record those? The $1000 deductible I recorded as coming from my credit card to an expense I set up specifically for this flood. But I wonder should the repairs be deducted from the value of the house and then replaced as they are done? I'm confused as to how to track all of these transactions.
>>
>> Thanks for any help you can give,
>> Maria
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