Drywall and Paneling Replacement

February 2, 2011

I am handling a fire claim in which there was fire-taped drywall behind the paneling. The insurance company is stating that they will only pay for 1 type of wall covering. I feel that both should be paid for, as that is what the insured has and is entitled to. The insured has an HO-3 Special Form (HO 00 03 10 00). What is your opinion?

Illinois Subscriber

There's nothing in the policy that says that only one type of wall covering is what is replaced in event of a loss. The insured had drywall and paneling, the insured is entitled to drywall and paneling in order to be indemnified. Otherwise, the insured is not restored to pre-loss condition, and that is the point of the policy.