does home insurance pay for demolishing after a fire ?
my rental property was damaged by fire and then city decided to demolish the building, building was demolished and building was insured for $70,000, now city is asking for $55,000 for the demo. will my insurance pay for the demo ? any idea . my policy says that they will pay the reasonable cost to remove debris after a loss occurs but doesn't mention anything about demolishing
- Coffee DrinkerLv 77 months agoFavorite Answer
Yes, they should pay it. If they think $55k is an unreasonable amount then your insurance company should be taking action to appeal the amount to the city.
Is there some reason the city stepped in and demolished YOUR home, instead of allowing you and your insurance provider to choose a contractor yourselves?
EDIT: I understand that the city might condemn the building and forbid anyone from entering, and require that you have it demolished, but they still should have given you the chance to choose a contractor that was approved by your insurance company. It would just frustrate me if they did it for me and then billed me such an astronomical amount when I could have hired someone to do it for half of that.
Your insurance should pay it, but it still screws you because if you reach the cap on your insurance policy then the money spent paying for over-priced demolition is money you can't spend on building a new house.
- car253Lv 77 months ago
Did you put in a claim for the fire? Why was the building insured for only $70,000? Was it a small building? It doesn't matter. I was just wondering.
Did you put in a claim for the fire damage? Get some estimates from other companies on how much it costs to demolish the building. Your claim rep should be helping you. Only they can tell you how much they are willing to pay for the demo.
- Casey YLv 77 months ago
See your other post, your question has been answered already.
Without knowing the type of policy itself (you could have a DP/DF 1 policy), nobody here can answer...but we'd all like to know why the city stepped in...
- EvaLv 77 months ago
Read your policy to see how much they pay for each thing. They should pay for the demo since the city decided it was necessary. I hope someone took pictures.