Investigation into fire at Teddy Riley studio could take a week

It's been a while and still no word on the investigation. The Virginian Pilot needs to follow up.

How's that investigation going? Why haven't we heard more about this extremely suspicious fire?

I didn't think Riley actually owned the building anymore. I thought it was in the hands of the people who owned the debt? Years ago an internet service provider named Picus went out of business. Their DSL equipment was up for auction by Atlantic Remarketing. I heard there was 1 bid at $1mil for all of it, and the bid was rejected as being too low. As I understand it, it was the only bid. It's called chasing the market down. Greed can hurt! Cut losses and run. I thought a big portion of Riley's equipment was already auctioned off? Maybe that was just from storage units. Much of the music I'm familiar with from him was pop hits that were in no way dirty or violent, and they live on as hits.

I am not sure why I am arguing with you. Virginia is not a valued policy state, I think that is where you are getting confused. As long as you are bring up the indemnity in this situation, to make this loss "whole" again, the insurer would replace the building and equipment lost or compensate the insured for what they lost if they are not going to replace it (market value of the building and equipment). Look up indemnity again, it is in your licensing manual. Or, better yet, check with the claims or underwriting department of your company.

If you iunsure for RC you pay RC. You do not have that right in VA. Unless you want to be sued under the rule of indemity. You cannot decide to lower an insureds payout if they choose not to rebuild. I have seen companies challenged on this issue.

It's in your licensing manual.

Market value? On a structure? I was an agent for 20 years BTW. Still am some days.

How many times do we read/hear about some young musician or actor, celebrity etc. make a lot of money and by virtue of not being used to it, or mature enough to accept the "huge" responsibility of managing it day in and day out besides just finding ways to burn it up reckelessly (no pun intended) watch it melt away and end up only in the deepest of you know what. Darn shame. Had it by the horns only to end up gored by it all...which celeb, lotto winner, 15 minute fame type is next? Age old story.

http://www.youtube.com/watch?v=Rq0zUJCl9Qs

I am an insurance underwriter and have been licensed in 26 states. The majority of the time when someone decides to not rebuild, they are only given market value. This is to prevent insurance fraud in cases like arson for both real and personal property so that the person cannot just walk away with more money than the actual market value of what was lost because of depreciation and dilapidation. I am not sure in what aspect of the insurance industry you have worked, but I can assure you that I have had to explain this to many people over the years. However, when someone rebuilds, as in the majority of the cases, they are due the full rebuilding cost as long as it falls within an acceptable percentage of the ITV ratio.

"then all he would get is market value for the building and the contents. It all depends on the contract, but this is how most of them work."

How would you determine market value without using the land which cannot be insured? Please folks, remember that what you read on the internet is often incorrect. An example are the headlines about the folks in Gulfport being flooded in the last week. They are saying that FEMA told them they did not HAVE to carry insurance. Many of us do not have to HAVE flood insurance but many CHOOSE to carry it even if their bank says it is not required. That argument is between them and their agent, not FEMA.

Moderator: Sorry about the multiple posts but it is needed to convey a useful message.

is this the guy who had a house down by the beach,and was totally vandelized by his "possie",and then the house was put up for sale or foreclosed?

Your comment on how insurance works is completely false. I previously worked in the field for years. In VA, you are paid on replacement cost, actual cash value, or a stated amount. There are some other variations but the two most common are the replacement cost and actual cash value. Market value never enters the picture. Never.

If it was written on replacement cost the square footage would be multiplied by the cost of construction. The contents would be based on the amount provided by the insured. Replacement cost has a hitch called co-insurance that penalizes you for underinsuring property.

I wrote because that could really confuse people and someone could make a really bad choice based on false information.

No comment on the fire situation because I know Teddy and his family. ... p.s. to all readers ... don't make judgments as you too shall be judged one day yourself. Just thank God no one was hurt.

Things that make you go "hmmmm..."

Yes, "lesser repute". Let us compare: award-winning art that can be enjoyed by everyone and will be treasured forever vs. pop music that requires parental supervision, and will be largely forgotten in a decade; an artist who paid taxes, managed his business very well, and never had a brush with the law vs. someone who did not obey the law, mis-managed his business, and requires legal representation. Which is the better citizen and which made a more positive contribution to society?

On most insurance contracts, the building would be replaced with a new building and the outdated equipment inside would be replaced with new modern equipment. If the insured does not want to rebuild, then all he would get is market value for the building and the contents. It all depends on the contract, but this is how most of them work.

All is not lost..... I wonder who I can contact to purchase those large Yucca trees in front of the studio?

The cost of insurance has nothing to do with the market value. if the minimum bid was 500K and was not met, it works like this: I used the square footage and multiplied by $150 a foot which is a conservative number. Then examine the area of the lot in question.

Even after the demo of the remaining building the fire was a very good deal. If it was insured that is.

People of lesser repute? That's kind of ridiculous. Both made great contributions, just in different ways. Different doesn't equate to inferior. We should respect all the history that was made in that building.

Was it the Vet who didn't win the bid on the property? The article never mentioned suspect of foul play. Also, you can't really use the values of property from the past few years today, real estate goes down in value.

Before this was "Hip Hop Central", the building housed the studios of photographer extraordinaire Ronn Maratea. A shame to see a building with such a wonderful origin fall into a sad situation involving people of lesser repute ending in questionable destruction.

Best of luck to you in the future. I am sure your future is so bright, you gotta wear shades. Too bad you can't go back to the future and prevent your studio from burning. I guess there isn't a future for future.

Yup, That's what it had to be. We had a lot of this kind of "lightening" when I lived in Baltimore. Always semed to hit buildings that had trouble selling.

Once again the firefighters of Hampton Roads are heros.

It is certainley worth more being burned down. I figured the minimum value w/ medium qualith at about $495K. The current assesment on the land is $160,300. It is safe to say that the assesment is far less than the land is worth w/ it being on a major corridor. The article said no one met the minimum bid of 500K. This is most likely due to the additional cost to level the building. Thus the fire actually increses the value of the overall payout a great deal.

Quite lucky for Mr. Riley...wouldn't you say?

Say what you want, but that studio had history in Hampton Roads. Famous people recorded there. Wasn't there a bunch of lightning this morning?

hot stuff...a fire sale...of sorts. Wonder if the policy is greater than 500k?

I guess Teddy and 50 cent were together at the time of the blaze? :-)

Seriously, anytime there is a fire everyone loses.