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In response to
"Home insurance question: If your neighborhood is burning and you're upside down on your mortgage, would it benefit you to set fire to your house?"
by
CrankYanker
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1st they pay your actual cash value at the time of the fire - if you rebuild - they pay replacement value
Posted by
Epiphany (aka Epiphany)
Nov 15 '08, 16:32
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so all these people upside down are not helping - they may owe more then it's worth at the time of the fire.
you can of course try to buy a stated value price. Not sure they sell those on homes but they do for cars.
Arson is so freakin hard to prove - they almost always pay it - especially CA - 1st party bad faith claims are more costly then paying off a policy.
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