My garage burned-complete loss! Insurance is paying 24,000- all the rebuild estimates are $40,000/$50,000?? Not sure why such a large gap? I’m not sure what to do? Can I refuse/ push back? Full coverage-should mean full coverage?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Nov 21, 2019

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Insurance Question from Dupo, IL

Asked on 11/21/2019

My garage burned-complete loss! Insurance is paying 24,000- all the rebuild estimates are $40,000/$50,000?? Not sure why such a large gap? I’m not sure what to do? Can I refuse/ push back? Full coverage-should mean full coverage? What can I do? Or the amount they are paying me is it? How can there be such a large gap? I know my premiums go up every year?

Answer given on November 24, 2019

If your garage is a total loss, and is connected to your home, the insurance company should pay the full amount of the damage, less your deductible. In this case you should discuss the settlement with the adjuster as to why such a large difference between their offer and the actual estimates that you have received.  If the answer is not adequate, ask to speak to a supervisor.

If the garage is detached, or separated from the house, then it is considered an additional, or appurtenant, structure. These structures are a percentage of the amount of insurance on the house, usually aorund 20% or 30%.  In that case, that is the amount of insurance available to rebuild the garage, again, less the deductible.  Review the homeowner policy, and discuss with your agent or the adjuster to understand how this insurance works.


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