MichaelSchmichael

Imperial Sugar: Insurance Coverage Adequate to Rebuild

Insurers don't pay the limits of liability unless the covered loss (or damages, depending on the policy type) exceeds the limits. There will be no windfall on the insurance recovery. Moreover, even if the policy expressly provides for "replacement cost" coverage, there always are factual disputes (real or pretextual) concerning the "replacement cost" (just ask the Allstate insureds whose houses burned in the San Diego fires). The bottom line is insurers don't make money by paying claims promptly and completely, especially 9-digit claims.