Legal Question in Insurance Law in Alabama

Home Insurance

We live in the state of Alabama and we lost our home to a fire on August 18, 2007. We had homeowners insurance which was for $260,000 which was supposed to be the replacement value on the home. We had $180,000 for contents, $13,000 for demolition, and up to $26,000 for pool replacement. After three months of going back and forth with the insurance company, they are now saying that they don't have to pay me full replacement value on the house even though the house was a total loss and was recently demolished. They are now saying that they only have to pay me actual cash value less depreciation. They are also saying that even though my policy stated replacement value for the contents, that they do not have to pay me replacement cost, only actual cost minus depreciation. I feel like I am being taken advantage of, any help would be appreciated.


Asked on 11/20/07, 2:41 pm

1 Answer from Attorneys
Melinda Parks The PARKS Law Group

Re: Home Insurance

This question is impossible to answer without a thorough reading of the insurance policy. It sounds like you have an understanding of the policy and are indeed owed money under same. You should contact an attorney who can read through the policy and, if necessary, contact the agency and make a demand on them. I am sorry I cannot answer more specifically but insurance policies are very detailed documents. I can say that it is not beyond the insurance company to try to pay you as little as possible. Good luck.

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Answered on 11/20/07, 3:43 pm


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