Insurance legal advice please!!911?

Question

Our house caught fire last week, we lost everything its obviously that it was a total loss. We do have insurance they told us that our we could probably get the whole amount on the policy which is only 25,000 it is obvious that its going to take more than that to reconstruct the house plus we lost everything inside the house. My question is can the ins pay more than the amount in the policy WE ARE CLUELESS PLS advice!

Answer 1

Under no circumstances will ANY insurance pay more than the coverage limits.

Answer 2

No.  

You can't walk onto a car dealership lot, hand them $200 cash, and get a brand new Cadillac (without a loan).  

You didn't pay for it.  You get what you pay for, THAT'S IT.  You were underinsured.  Seriously  underinsured.  The insurance company is paying the total policy limit - their fair share.  The REST of it, was your choice, by deciding you didn't want more insurance than that.

Answer 3

I am not sure why your limit would only be $25k for homeowners insurance. Is it possible that $25k is for personal property and there was a separate (much higher) limit for the structure?

If that is the case, and the damage was much higher you would be lucky if the insurance comany would pay the full $25k. Under the law, if you intentionally under insure somthing, the insurance company may proportionately reduce the coverage. For example - if the propoerty was worth $50k and you only insured $25k, you were only insuring 50% of the value and insurance company only has to pay you 50% of the limit you chose - or $12.5K.

Answer 4

Your limits are low.  Why? Mobile home?   Most policies will pay an additional 5% of the limits for debris removal.  This will be paid when you present debris removal bills. You need to provide more information for  additional  help through this forum.

Answer 5

Generally insurance policies will only pay the face amount of the policy.   Was the $25,000 for contents only or contents and the home?  Was there any type of provision about fires outlined separately?  I would have your agent go over the policy details with you.