Every insurance policy states that you will be paid the least of 3 amounts:
1. the policy limits
2. what it would cost to rebuild exactly what you had
3. how much you actually spend
After the fire, if you built-or-bought at a different location, then:
4. California Insurance Code removes the 3rd option; you would get the lower of ‘1.’ or ‘2.’. If you were paid less than either of these two amounts, you have a legally valid claim.
5. You also would be entitled to the Ordinance and Law Coverage (Code Upgrade Coverage) for the amount it would have taken to rebuild your home exactly the way it was, but with today’s building code requirements. If you were paid #4, you have a legally valid claim.
To summarize the above: if you built-or-bought at a different location, then your insurance company owes to you: the lower of #1 and #2, plus #5.
I have been fighting for over 2 years to get the insurance companies to pay claims according to the California Insurance Code, and recently there was issued a ruling in our favor regarding this relocation issue.
If you have any of these issues, or other issues, regarding your insurance claim, please give me a call to discuss. If you are still in the area, we can meet at one of my offices, either in Santa Rosa or Middletown; if you are not in the area, we can simply arrange a conference call. Please call Karen at 707-987-HOPE to set up an appointment.