In January 2015, The Department of Defense changed the structure and funding of the Basic Allowance for Housing, effectively eliminating the component of BAH that was used to provide renterís insurance to residents of privatized military housing.

Following this change, the privatized military housing contractor on Fort Bragg, Corvias, no longer provides renterís insurance to Fort Bragg privatized military housing residents.

Privatized military housing residents on Fort Bragg will still be able to submit a claim for property loss or damage that occurs in their quarters to the Fort Bragg Military Claims Office located at Building # 4-2843, Soldier Support Center, 1st Floor, Wing D.

These claims will be adjudicated under the Personnel Claims Act. However, for the reasons outlined below, it is highly encouraged that residents of Fort Bragg privatized military housing secure renterís insurance coverage.

There are many possible limitations on any recovery a claimant may be able to get for their lost or damaged property under the PCA, limitations that can be overcome through coverage under renterís insurance.

First and foremost is that under the PCA, depreciation must be taken on most property for which loss or damage can be paid. Furthermore, certain types of claims, such as indirect, remote, or consequential damages, cannot be paid at all under the PCA.

Among other restrictions, claims will not be paid under the PCA for intangible property or inconvenience or loss of use.

Property acquired for re-sale or private business use would not be covered. Claims for vandalism would not be paid when the vandal is known. These are just some examples of the limitations that may apply to the type of property damage that can be claimed under the PCA.

While there are many forms of renterís insurance, privatized military housing residents should find the one that is best-tailored for their needs.

Renterís insurance can overcome all of the limitations under the PCA described above that may severely limit any monetary recovery a resident might incur due to loss or damage in privatized military housing.

Therefore, in order to maximize any recovery hoped for after experiencing loss or damage in privatized military housing, residents should maintain renterís insurance.

In addition, residents of privatized military housing who carry renterís insurance should first submit any claim for their loss or damage to their renterís insurance company. Then, if there is any portion of their loss or damage that is not paid for by their renterís insurance company, the privatized military housing resident can submit another claim to the MCO for the difference.

The sequence of these claims (i.e., first to the renterís insurance and then the MCO) is very important if the claimant wants to maximize recovery for the loss/damage, because most renterís insurance companies will not pay a claim after the MCO has already reimbursed the claimant even partially.

So, submitting a claim with the MCO before submitting a claim to the renterís insurance will likely leave the claimant with only limited, depreciated recovery that the MCO is able to provide under the PCA.

If you have further questions about the claims process, call the Claims Office at 396-7505.