Legal Question in Insurance Law in Alabama

home fire insurance

if you have an insurance policy with a value of $86000 and your home is completely destroyed by fire, can the insurance company pay you less than the estimate is to rebuild the home and depreciate the value of the home from what their insurance adjuster says the replacement value is?


Asked on 1/25/09, 1:51 pm

2 Answers from Attorneys
Melinda Parks The PARKS Law Group

Re: home fire insurance

It really depends on what type of policy you have. You should contact an attorney to review your policy. The insurance company is in the business of paying you as little as possible and will not inform you of everything you might need to know. Please feel free to email me if you would like for me to review your policy and explain the options based on the specific facts of your case.

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Answered on 1/25/09, 3:06 pm
Jon Lewis Lewis, Feldman, & Lehane, LLC

Re: home fire insurance

It depends on what the policy says and what representations were made to you about the coverage - agents, etc. Some of these policies limit the recoveries by a percentage. The "bad faith" legalese is, "do they have an arguable or debatable reason" for denying the claim or not paying for the whole claim. It would be important to know additional facts in order to make a determination as to whether or not you have a claim. The potential claims, if you have one, would be (1) breach of contract; (2) fraud; and/or (3) bad faith failure to pay.

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Answered on 1/25/09, 4:54 pm


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