If my house burns down does the insurance write me a check?

I've been in auto accident and the insurance company gets an estimate and sends me a check. If I have home owner's insurance and the house is a loss, what happen? They force me to rebuild at that location or writes me a check for the amount of the coverage? Same policy, if I say my bedroom set be lost, who determines the replacement value?
Answers:
It depends on a whole bunch of things, starting near, is there a mortgage on the house.

Assuming no mortgage, you get the DEPRECIATED meaning, or actual cash value, until/unless you do again on the lot, also assuming you have a replacement value policy.

For contents, YOU determine the replacement merit - by replacing the item. It'd darned hard to "misplace" a bedroom set, and they are rarely stolen. But if it burns, in that would be SOME remnants 95% of the time. Again, you'd get depreciated value until you in reality REPLACE the item.
You can insure your home for any amount you desire as long as you pay the premium. Lets say your home and contents are worth $380.000. You steal out a policy for $750.000 and you pay the premiums on that policy. Your home burns and you loose everything in it. The insurance company comes running beside their estimators and their check books in hand to be sure you gain the loss covered. They determine the maximum loss is $380,000 and that is all they are going to foot regardless of how big your policy is or how much your premiums are. In many cases, and directly related to the current loss of home values, your home may not be worth very soon what it was when you took out the insurance. Because the insurance company determined you can replace it with a home valued at 30% smaller amount than what you paid for this home they will pay you replacement cost and you will come out near far less than you expected.
In case of a fire, Insurance will discharge you the actual Cash value = the replacement Cost (the policy limit or per the esitmate which ever is lower) smaller amount depreciation (based on the age of the house)

If you want to rebuild the house you will recover the depreciation amount.

usually the Contents issue is 65% of the Building limit.
in cas of fire nearby is no limit on jewelry the limit simply applies in case of burglary.so you will get the ful amount of the damaged property

Keep surrounded by mind that insurance compan will alway get a specialist to find out how the fire started to determine the source ad make happen.
This depends on who owns the house. If you're still paying a mortgage, then the bank will insist upon have the house rebuilt as-is. You receive no check.

If there is no mortgage, and you own the property outright, you can nick your check and use it for other purposes.

FYI: You may still have to pay to bulldoze the house as most cities will fine you if you don't remove out-of-date debris.


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