Legal Question in Real Estate Law in Illinois

My sister's house was burned down by my 20 year old nephew living with her. They have had a lot of problems with him - - he stole money, broke into their online investment accounts, etc. He was prosecuted and got out on probaation but is now back in jail.

Their Illinois Property insurance denied their claim because he is considered an insurance and it was an intentional act.

However, there is a section in the insurance policy contact that says "If a policy excludes property coverage for intentional acts, the insurer may not deny payment to an innocent co-insured who did not cooperate in or contribute to the creation of the loss if the loss arose out of a pattern of criminal domestic violence and the perpetrator of the loss is criminally prosecuted for the act causing the loss. Payment to the innocent co-insured may be limited to his or her ownership interest in the property as reduced by any payments to a mortgagor or other secured interest."

They have contacted an attorney who wants 25 - 33 % of any settlement. Is this normal? And shouldn't the attorney seek damages in addition to the cost to re-build and personal property?


Asked on 8/03/09, 3:19 pm

1 Answer from Attorneys

I don't know what you mean by damages in addition to the cost to re-build and personal property. Do you mean rental expense, too? Additionally, If there is a wrongful denial of insurance coverage, attorneys fees may be recoverable. The 25% - 33% is not abnormal for a contingency case. If your sister had the money to pay as she goes. she may be able to negotiate an hourly rate.

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Answered on 8/08/09, 11:08 pm


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