Why An Insurance Adjuster May Recommend Rebuilding Your Home After A House Fire

11 November 2022
 Categories: Insurance, Blog

Did you recently suffer a house fire that will require major repairs? While the goal of your insurance company is to repair your home to put it back to exactly how it once was, that may not always be the case. The insurance adjuster may actually recommend tearing down your home and rebuilding it from the ground up in some situations. Here is why this could happen after a house fire.

The Repair Costs Exceed Rebuilding Costs

One thing to keep in mind is that the insurance company must repair your home to the state that it was in before the fire. This includes putting in the same types of construction materials, appliances, and finishes that the home had. This means that they are not allowed to put in inferior materials and cut corners in order to repair your home under budget.

What could happen is that the fire is so bad that the repair costs are way too high. It may not make sense to repair the home when the vast majority of the structure needs to be removed and replaced. This is especially true when it will be cheaper to tear down the house and start from scratch. 

Having to rebuild the house puts you in a unique situation though. Your insurance company may give you the cash value of the rebuilding costs and allow you to build what you want on your property. They may also decide that they will handle the rebuilding process and make sure that the home is rebuilt exactly how it once was.

The Home Cannot Be 100 Percent Repaired

Sometimes the smoke from a fire ends up causing more damage than the flames. What could happen with your home is that the smoke permeates all of the construction materials, causing a foul odor in your home that doesn't go away. It is not just the insurance company's job to ensure that your home looks how it once did, but is completely free of any smoke smell as well. If the insurance company cannot guarantee that a repair will remove the smoke smell, they may decide to tear down the home and start from scratch with new construction. 

This is often the case with older homes that do not have fire stops, which can cause the smoke to get to all parts of the construction material. You'll end up with a lot more damage than you think there is in this situation. 

To learn more, reach out to a fire damage claims adjuster.