Home was loss in a fire, the contractor say it will cost 102,068.60 to repair we want to demolish and take a cash settlement. The insurance is more then what the thouse is worth. We bought the house for half the repair cost, how would the insurance company handle this?

How much did you insure the house for??

I'm not getting your question. Have you talked to your insurance agent?

I'm not getting your question. Have you talked to your insurance agent?


how will the insurance company come up with a settlement if it going to cost more to rebuild then what the house was valued at.

how much did you insure the house for???


The house was insured for 186,000, and its going to cost 102,068.60 to repair.

If the house was insured for more than the cost to repair the carrier will commission an construction estimate to replace what you had. I dou bt if they will pay more than that. It would depend on what your policy says.

Then they will probably total it out. I used to work for state farm. What is your insurance company

if it is truly a homeowers policy the market value is irrelevant. The policy should be written on a replacement cost basis. The actual settlement may vary considerably from state to state as policies are different in different states due to insurance law in each individual state. Obviously if it is cheaper to repair the home than to rebuild it they are going to repair it. That is what they owe you. To put you back into the same condition you were in before the loss occurred.

They will most likely offer the cost to rebuild, minus any value of the property unrepaired.