Insurance question (Fire)?

Question

If a house was burned downed to the ground would these insurance company find some flaw in the insurance contract and not cover the owners home? Note: If your an insurance agent don't give me a spin answer give it me a strainght and to the point. Thanks.

Answer 1

The company will certainly investigate it, but that doesn't mean there's a "flaw."

The biggest thing they'll look for is arson. If you set the fire yoruself, and they find evidence, they won't pay the claim.

They might also want to know whether the house was vacant at the time of the fire. I have seen a claim denied because someone else (not the owners) set fire to the house, but it had been vacant for 36 days. According to their policy, vandalism and malicious mischief coverage was not covered if the house was vacant for more than 30 days.

Good luck with your claim. If everything is on the up-and-up with you, then you shouldn't have any worries.

Answer 2

Possibly - if there was a 'warrant' endorsement on the policy, or if there was material misrepresentation on the application - such as calling it an owner occupied home, when it was vacant.

Also, if the insured burned the house down, EVERY policy has an exclusion for THAT.

But if you're up front with your agent about the house, and the agent wrote the policy for you honestly, and the building is a total loss, and you didn't cause the fire, you should get the policy limit.