Illegal Insurance Claims Conduct on Total Home Losses!

If you have had the misfortune to lose your home to a fire or some other catastrophe you may be having serious problems with your insurance company. We have become aware that some insurance companies that write replacement cost insurance on homeowners’ insurance policies are using illegal tactics to keep from paying the benefits required by Kentucky law.

One way insurance companies do this is by using a market appraisal to calculate the loss payable on the home itself. Instead of calculating the replacement cost on the house, the insurance company hires an appraisal company to establish the fair market value of the home. This may seem innocent enough, but the difference between replacement cost (that is, the actual cost to rebuild the house) and the value of the house in the real estate market are two very different things. The market value of a house is almost always much lower than the cost of replacing the house. Even though your insurance policy may require the company to pay replacement cost, some insurance companies are refusing to pay anything more than the market appraisal, even though the replacement cost may be much higher and you have enough insurance coverage to pay the higher amount. This may be illegal under Kentucky law.

If this is happening to you or someone you know, contact us today for a free legal consultation.