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  1. #1
    Join Date
    Jan 2009

    Default Fire Claim to Be Paid, But Offer is Low

    The insurance company has "lowballed" their offer. We do not have an attorney do not want to hire one. We have replacement cost policy, actually we have top of the line policy.... replacement with no depreciation, clause with extra 25% if replacement is more then policy amount and so on. This is where the claim stands As follows:

    Policy amount -dwelling- 109,000 ( with 25% clause)
    policy amount- contents-75,000

    dwelling-98,000 (rebuild actual cost 135,000 to 145,000)
    contents- 6,500 (claimed 12,000)
    Should we refuse? If so, how do we go about getting them to pay what we paid premiums for?

  2. #2
    Join Date
    Jan 2009

    Default Re: Fire Claim to Be Paid, But Offer is Low

    we want to ask for 127,000
    dwelling 109,000
    contents 12,000
    cleanup 5,000
    firefighters 1,500...........Is that a fair request??????????

  3. #3
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Fire Claim to Be Paid, But Offer is Low

    Questions about valuation are best asked of an appraiser.

  4. #4
    Join Date
    Apr 2009

    Default Re: Fire Claim to Be Paid, But Offer is Low

    Unless you had a total loss, they are not going to pay policy limits. If the shell of your dwelling can still be used, and they have to replace everything else, then they will do that. I'm thinking this must not be a total loss if you didn't claim the full amount on your contents. Also, replacement cost does not always apply to both Coverage A (dwelling) and Coverage C (personal property). Your policy has to have an endorsement to add replacement cost coverage to your contents. From what I gather by the difference in what you claimed vs. what they are offering you on your contents, you may have actual cash value on your contents, which would be a depreciated amount.

    In order to have them pay for cleanup costs, you have to have an endorsement on your policy to pay for what they call "debris removal".

    There is normally a seperate limit built into your policy to pay firefighters fees.

    Look at your policy very carefully. Keep in mind that one form may say that you have coverage- but you have to look at all of the forms and see if any of those coverages were taken away, increased, or otherwise changed by endorsement. Unfortunately, there are alot of stipulations and what if's and it can be tricky for someone who's not used to the "lingo" to digest and fully understand. And of course you're never in the state of mind to do that at claim time.

    You can always try to negotiate with your adjuster if you feel that you're being treated unfairly. Their job is to settle claims quickly and in the most cost effective way for the company.

    Good luck!

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