House fire "total loss" vs "economic total loss"

[rosaava]

We had a devastating house fire in WA state. The adjuster said he was sure it would be deemed a "Total Loss". The way the policy is written, that designation would allow a streamlined settlement paying the insured amount for the dwelling in full and 75% of the personal property coverage with little muss or fuss. We were relieved. However, the higher ups denied it being a total loss because there are still standing walls. They are calling it an "Economic total loss", meaning that it is irreparable--the home will have to be knocked down to the foundation (no more standing walls!)--but we will have to jump through all the hoops and hassles of depreciation, itemizing the household, actual cost vs. replacement cost, and strong armed into rebuilding the home (which we may not have done) under these terms. It seems an arbitrary designation that we can't find any recourse for. Any suggestions appreciated!