Do insurance companies have a 90 day window from the start date of the policy to reduce the liablity limits for home if they didn’t get to inspect it?

I just bought my home from a bank that forclosed on the previous owners. I insured that day for replacement cost. Two weeks later it burned down before an appraiser was able to appraise it. now my insurance company says that because the policy is less 90 day old they can only pay actual cash value. My policy doesn’t have a waiting period on it.

Asked on June 11, 2009 under Insurance Law, Tennessee


L.M., Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I would have to look at the wording in the policy to determine if there is a clause regarding the start time for the replacement cost coverage.  Some policies do have a waiting period, but it's in the "small print".  If you don't see it anywhere in your policy, ask the insurance company where the wording is in the policy that indicates they will only pay acual cash value in the first 90 days.  If they cannot or will not point it out to you, you will need to contact an attorney who is well-versed in first party insurance coverage in your area.

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