House Fire

What is the name of your state? Iowa
On the 6th of this month, I had a house fire, caused by electrical devices, the state fire marshal as well as the fire inspector for the insurance company agreed on the cause of the fire.
No one was home at the time.
The insurance adjuster came the same Monday as the others I mentioned, everyone was very polite and there were no problems with that.
The insurance adjuster, then had an appraisal of the property which was a total loss. We had the house appraised 3 years ago and that appraisal was nearly 10,000 more than the new appraisal. I have spoke to a loan officer at the bank as well as another appraiser, and was told that in the past three years the property value in our area has risen 10%.
I faxed a copy of the previous apprasial to the adjuster and I spoke to him on the phone and told him that we could not settle for that amount of money, as the house is worth more than what his appraiser appraised the property for. The comparison homes that he used in his appraisal were not any where near comparable, square footage or condition as our home.
Aren't we entitled to the fair market value of our home? Doesn't the insurance company have to settle for the fair market value, when I have an appraisal that proves that the property was worth more than it was appraised for by their appraiser.

The comparison homes that he used in his appraisal were not any where near comparable, square footage or condition as our home.

Why are you using comps?

Aren't we entitled to the fair market value of our home?

Depends.

Doesn't the insurance company have to settle for the fair market value, when I have an appraisal that proves that the property was worth more than it was appraised for by their appraiser?

Depends.

Claimlaw

If it is one that adjusts for inflation, it likely covers "replacement" value, not fair market value. Were they furnished with a copy of original appraisal when you first applied for the policy? Check your policy, it may have a limited increased value per year.

Certain components may be reusable, like foundation, water, gas, sewer lines, etc. So they could likely rebuild it for less than it would appraise when completed (and less your deductable).

Appraisal

I have replacement cost insurance. There is no stipulation in the policy for inflation. I do not see how someone who has no prior knowledge of the condition of my home, before being totally destoyed by a fire, could determine the condition it was in pre-fire.
Also, everytime a house is appraised, the appraiser uses comparison homes that have recently sold to determine the fair market value. The problem with the comparison homes that he used, is that they were no where near the excellent condition of my home.
This is to say the value of the home minus the land. Which I agree with the value that they put on the land.
The biggest problem is that the appraiser used homes to compare my home with which were inside of the city limits, not rural as my home was.
He used homes that did not have new siding, windows, and roof. He also used homes that were in dire need of extensive remodeling to be comparable to my home. My home was entirely remodeled from top to bottom in 2002.
I had the home sold for an amount 20,000 more than the appraiser the insurance company hired came back with, I researched the housing market in my area and talked to a couple of realtors and new that my home would appraise for the amount I had it sold for.
We are talking 4 bedroom 2 bath 320 sq ft kitchen huge living room, ground floor laundry, ceramic tile on all baths and kitchen floors and walls.
I spent a great deal of money, not counting my labor remodeling this home. Last winter, I added a large walk in pantry off the kitchen. All I am wanting is the fair market value of the home, less the value of the land.

Replacement

Also, I might mention, that the current construction cost in my area is $151.50 per sq foot. No basement. Water lines, sewer lines gas lines ect are not an issue, as this is rural and those are the responsibilty of the homeowner, always on rural property. The approximate cost to replace the home that I had is 330,000.00, I am not asking for even 1/3 of the replacement cost, if it were new construction. My home was built in the 1800's and had some very unique features that could not be replicated today, as they were hand tooled not machine made. My home was in pristine condition, and I do not believe that it is fair.

That is all fine but, you asked for advice and then decided not to take it.

You do not know what you are talking about and regardless how smart you may be, you don't have the tools to compete with these people and you cannot acquire the tools in the necessary period of time even if you are President of your local Mensa chapter.

Go back to my first post and start over.

Claimlaw

Okay. My Bad. My response was to you but I thought I had suggested professional assistance. It was another poster.

Get professional help on this. Don't waste your time and money trying to do it yourself.

You need to contact a lawyer whose specialty is "1st party property claims". This doesn't mean a lawyer that will take your case or a lawyer that will learn about it on your dime - I mean a lawyer that has handled over 20 1st party property claims and is willing to give you a list of referrals.

Otherwise, hire a competant Public Adjuster in your area.

Ask me or another on this list for a good referral.

BTW: If you go with the Public Adjuster do it soon. They are all going to Louisiana about now.

Claimlaw