What to do when you are told you are under insured after a house fire?
We had a house fire. It destroyed our front wrap around porch and front part of our home. We purchased house insurance 22 years ago (when we moved in), and over the years had very little contact with the broker, every year our policy was renewed and mailed to us, we never worried about it. Anyhow, our insurance policy is for $290.000 on the dwelling, 152,000 on contents, and 56,000 living allowance. We were told by the insurance adjuster that we should have been insured for 495,000 on the dwelling. As only a portion of our home was destroyed, the question the insurance adjuster is faced with is, as we do not have enough insurance which part of the home does he cover. Apparently we are responsible for 40% of the cost as we are not insured enough. Even though we have 100% coverage and we thought we were fully insured, we feel this is unfair and not right. What is your advice on how best to handle this situation. Under Insured on HouseHi there Sorry to hear this. It's too bad no one ever proactively reviewed your file and visited the house. This is a common problem when a home is insured without a review for a long time. You can ask if there was "Guaranteed Rebuilding Cost" on the home. That would help, but often it is void if the house has not been inspected in the past 5 years. You can get legal advice and you could try pressuring the insurer for a better payout due to your years of loyalty. But it sounds like you're not going to get a good outcome.  Ask another question at House Insurance Questions and Answers Note: Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility. Make sure you review the "please read" page. OR visit Canada Home Insurance www.canada-insurance-source.com |