How to Handle Disputes Over the Cost of Fire Damage Repairs

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Steps in Filing a Lawsuit Against Your Insurance Company for Fire Damage in Mississippi

After a fire damages your home or business, you rely on your insurance company to provide fair compensation to cover repairs, replacements, and rebuilding costs. Unfortunately, many Mississippi policyholders encounter disputes over the true cost of fire damage repairs. Insurance companies often undervalue damage estimates, offer lowball settlements, or refuse to pay for necessary repairs.

If you’re involved in a fire damage repair dispute, there are legal steps you can take to protect your rights and pursue the full compensation you deserve. At Barrett Law, PLLC, Jonathan Barrett, an experienced Mississippi fire insurance claim attorney, helps policyholders resolve disputes and hold insurers accountable for unfair practices.

Why Do Fire Damage Repair Disputes Occur?

Insurance companies may dispute the cost of fire damage repairs for several reasons, including:

1. Lowball Repair Estimates

Insurance companies may rely on in-house adjusters or preferred contractors who offer low-cost repair estimates that fail to account for:

  • Specialty materials needed to match original structures.

  • Complex repairs like electrical rewiring or structural rebuilding.

  • Rising construction costs due to inflation or supply shortages.

2. Disagreements Over Repair Methods

Insurers may try to reduce costs by:

  • Proposing superficial repairs instead of full replacements.

  • Recommending cheaper materials instead of matching original quality.

  • Disputing the need for extensive smoke, soot, or water damage remediation.

3. Misclassification of Damage

Some insurers classify damage as:

  • Cosmetic damage rather than structural.

  • Water damage instead of fire damage to limit payouts.

  • Pre-existing issues to reduce liability.

4. Denial of Code Upgrade Costs

Modern building codes may require electrical, plumbing, or HVAC updates during repairs. Insurers often refuse to cover these upgrades unless the policy includes ordinance and law coverage.

5. Improper Depreciation Calculations

For Actual Cash Value (ACV) policies, insurers may apply excessive depreciation to reduce payouts on older materials and possessions.

Steps to Handle a Fire Damage Repair Dispute

1. Review Your Insurance Policy

Your policy outlines:

  • Coverage limits for structural repairs, personal property, and additional living expenses.

  • Exclusions that your insurer may attempt to use against you.

  • Whether you have Replacement Cost Value (RCV) or Actual Cash Value (ACV) coverage.

If you have RCV coverage, your insurer must pay the full cost of repairs without excessive depreciation.

If your policy includes ordinance and law coverage, you may be entitled to compensation for code-compliant upgrades.

2. Request a Detailed Explanation from Your Insurer

If your insurer’s estimate seems too low, demand a detailed breakdown of:

  • The insurer’s estimated repair costs.

  • Any excluded damage and the reason for exclusion.

  • The insurer’s depreciation calculations.

Mississippi law requires insurers to provide a clear explanation for their settlement decisions.

3. Document All Fire Damage

To strengthen your claim:

  • Take photos and videos of all damaged property.

  • Record evidence of structural damage, soot damage, and water damage from firefighting efforts.

  • Retain receipts and invoices for any emergency repairs or restoration work.

  • Obtain contractor estimates to compare costs with the insurer’s offer.

Detailed documentation is crucial in proving that your insurer’s estimate is inaccurate or incomplete.

4. Obtain an Independent Repair Estimate

To challenge a low settlement offer, obtain:

  • A detailed repair estimate from a licensed contractor or restoration company.

  • An estimate from a public adjuster who can independently assess the cost of repairs.

  • A report from a fire damage specialist if structural damage or code upgrades are required.

An independent estimate often exposes the true extent of the fire damage and reveals discrepancies in the insurer’s assessment.

5. Invoke the Appraisal Clause in Your Policy

Most Mississippi insurance policies include an appraisal clause, which allows disputes over repair costs to be resolved by:

  • Each party (you and the insurer) hiring an independent appraiser.

  • The two appraisers selecting a neutral umpire to resolve discrepancies.

  • The decision becoming binding on both parties once the umpire makes a determination.

The appraisal process is often faster and less expensive than a lawsuit.

6. File a Complaint with the Mississippi Insurance Department

If your insurer’s actions are unreasonable, you can file a complaint with the Mississippi Insurance Department. They investigate:

  • Unfair claim denials.

  • Unjustified delays.

  • Lowball settlement tactics.

Filing a complaint can pressure insurers to reconsider their decision and offer a fair settlement.

7. Consult a Mississippi Fire Insurance Claim Attorney

If your insurer refuses to provide fair compensation, consult a Mississippi fire insurance lawyer. An attorney can:

  • Review your policy for coverage loopholes.

  • Negotiate directly with the insurance company to demand fair payment.

  • File a bad faith insurance lawsuit if your insurer acts unfairly or refuses to pay a valid claim.

At Barrett Law, PLLC, we have successfully helped Mississippi fire loss victims recover maximum compensation for property damage and repair costs.

Frequently Asked Questions About Fire Damage Repair Disputes

What should I do if my insurance adjuster’s estimate is too low?
Gather independent estimates from contractors or a public adjuster to challenge the insurer’s numbers. If necessary, consult an attorney to pressure the insurer for a fair payout.

Can I dispute my insurer’s choice of contractors?
Yes. While insurers may recommend contractors, you have the right to hire a contractor of your choice to ensure the repairs meet your standards.

Does my insurance company have to pay for code-compliant upgrades?
It depends on your policy. If you have ordinance and law coverage, your insurer must cover code-compliant repairs and upgrades.

What should I do if my insurer refuses to pay for smoke or soot damage?
Document the smoke damage and consult a restoration specialist for a professional evaluation. Insurers frequently underestimate smoke and odor removal costs.

Can I sue my insurance company if they refuse to pay fair repair costs?
Yes. Mississippi law allows policyholders to file a lawsuit if the insurer is acting in bad faith, which includes:

  • Unreasonably low repair estimates.

  • Unjustified denials or delays.

  • Failure to properly investigate the damage.

Denied or Underpaid for Fire Damage Repairs? Call Mississippi Fire Insurance Claim Attorney Jonathan Barrett 24/7/365 at (601) 790-1505 for Your FREE Consultation

If your fire damage insurance claim has been underpaid, delayed, or wrongfully denied, do not accept less than you deserve. At Barrett Law, PLLC, we fight for Mississippi homeowners and business owners to recover full compensation for fire damage repair costs.

Call (601) 790-1505 for a FREE consultation—available 24/7/365. We proudly represent clients across Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Oxford, Tupelo, Meridian, Pearl, Madison, Greenville, Oxford, Clinton, Horn Lake, and Brandon. Let us fight for what you deserve.

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