Structure fire

[arv09]

A structure on my property recently burnt down. The insurance company is going to pay for a replacement building but they are just pricing out one that is a similar size. I'm okay with this but am wondering if this standard practice or should they reimburse me for the total that it was covered for? For example if my policy shows that the structure was valued/insured at $10,000 should they give me that amount (minus my deductible of course) or are they only required to give me the amount that they can find a similar building for?

 

[Just Blue]

A structure on my property recently burnt down. The insurance company is going to pay for a replacement building but they are just pricing out one that is a similar size. I'm okay with this but am wondering if this standard practice or should they reimburse me for the total that it was covered for? For example if my policy shows that the structure was valued/insured at $10,000 should they give me that amount (minus my deductible of course) or are they only required to give me the amount that they can find a similar building for?

U.S. Law Only.

 

[arv09]

I'm not sure what you mean. I live in Indiana if that helps.

 

[FlyingRon]

I'm not sure what you mean. I live in Indiana if that helps.

He means there is good reason why the forum inserted the question about what state you are in that you deleted rather than asking.

They are not going to pay out to the policy limits. You're only entitled to the actual value of the structure involved. If you have replacement value insurance, you're covered to the cost to build/obtain a new one.
You don't have any right to be enriched by this event.

 

[arv09]

I am by no means trying to be enriched my this event. This is my first insurance claim and I am just trying to understand if I should lower my limit of liability and decrease my premium since I am paying on a much higher liability amount than what I am receiving.