Legal Question in Insurance Law in Minnesota

House Wrecked, $3,000 Insurance Proceeds

My tax client is diminished mental capacity, but able to work and has owned a home for over 40 years. In April a big rainstorm hit and his roof failed, causing a large amount of damage to his house. In computing his casualty loss, he said the repairs cost $62,000 but insurance only covered $3,000. Insurance company's excuse: Roof over 15 years old. Seems either the insurance company or the home improvement company bilked this poor man. Can anyone recommend a specialty area where I can look for an attorney to help?


Asked on 2/04/02, 2:58 pm

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

Re: House Wrecked, $3,000 Insurance Proceeds

An insurance attorney would look at the policy and see if replacement cost coverage was provided. It sounds like the insurer paid ACV after deducting 15 years of aging for the roof.

But what about the payments due for the other parts of the house which were damaged? And for the personal property which was damages?

Something does not sound right. In addition to a careful reading of the policy, you should review all of the claims correspondence among the parties. Was there an adjusting company involved for the insurer? If so, get all of that material also. The analysis is similar to an auto accident where your car needs various parts and the insurer has their estimator lowball your chosen body shop/repairer.

And your client probably has ALE (additional living expense) coverage, so some of his costs should also be covered.

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Answered on 2/04/02, 3:36 pm


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