Why is my insurance company wanting me to sign a new policy now while I’m in the middle of a claim?

My house recently burned and my insurance company is now saying that my policy was written up wrong. My policy is under Homeowners/Condo because I have 2 kitchens and my downstairs can be rented. But now they are saying that my claim can’t be settled until I sign a new policy. I don’t understand why I have to, if they messed up then they fix it. But why should I have to fix what they messed up? And how did they mess up? Should I and why do I have to sign this new one before they settle?

Asked on August 20, 2012 under Insurance Law, Alabama


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I have no idea why your insurance carrier would want to sign you up for a new homeowner's policy while you are in the middle of a claim process concerning your burnt down home. I suggest that you consult with an attorney who practices in the area of insurance law before signing onto any new policy with your carrier. I suggest that you keep things status quo with your insurance carrier for now until you get your claim concluded.

From what you have written, it seems as though your insurance carrier may be trying to get out of paying on a claim that it may be obligated to pay on through the new policy presented to you.

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