Bubba still hasn’t been paid for his mobile home that burned when the squirrel’s tail caught fire and went running through the house. The squirrel seems to be doing okay even though he doesn’t have a tail anymore. Bubba saw him the other day from his tent he pitched underneath the tree to live in till he gets his claim paid.
I faxed the Conti v. Republic Underwriters Insurance Company opinion to the adjuster and he faxed me a copy of the policy and dec page. The policy has raised a whole new issue. The dec page shows the dwelling was insured for $38,000. If I could find people that would buy mobile homes like Bubba’s for anywhere near the price of $38,000, I’d go into the mobile home business today! The actual cash value is probably $12,500. I am curious to see if the insurance company is aware of 36 O.S. Section 4804 that states:
No insurance company shall, knowingly, issue any fire insurance policy upon property within this state for an amount which, with any existing insurance thereon, exceeds the fair value of the property, nor for a longer term than five (5) years. If buildings insured against loss by fire, and situated within this state, are totally destroyed by fire, the company shall not be liable beyond the actual value of the insured property at the time of the loss or damage, and if it shall appear that the insured has paid premiums on an amount in excess of said actual value, the insured shall be reimbursed the proportionate excess of premiums paid on the difference between the amount named in the policy and said actual value, with interest at six percent (6%) per annum from the date of issue.
If I was Bubba’s insurer, I would rather reimburse him part of his premiums along with some interest than agree his mobile home is worth anywhere near $38,000.