Is it bad faith for ALLSTATE to deny my claim?

Long store short my rental house was SET on fire (arson) at the time of fire i had two (2) insurance policy's on that house and several other of my houses (was switching company's way cheaper quotes)

i was told me i had to file the claim with both company's the new company accept my claim but allstate

Long store short my rental house was SET on fire (arson) at the time of fire i had two (2) insurance policy's on that house and several other of my houses (was switching company's way cheaper quotes)

i was told me i had to file the claim with both company's the new company accept my claim but allstate deny saying i had something to do with the fire

the city and state fire Marshall rule me out along with the other company so why allstate say i had some to do with it (they couldn't tell me no motive)

Best Answer:

Mike: When two policies are in force, settlements are pro-rated, meaning each company pays a portion of the loss, based on the amount each carries. Since having two policies does not increase the amount of the settlement (as other answers have implied), it wouldn't necessarily suggest fraud.
Arson fires are covered, unless they were committed by the insured. If Allstate has denied the claim, it must have done so in writing, and must give you the reason. Merely suspecting an insured of arson is not sufficient reason to deny a claim, but it IS sufficient reason to delay payment.
Unfortunately, Allstate is probably the most difficult property insurer there is. Their internal claims motto is "delay, deny, defend". They aren't likely to pay without a fight.
You need to hire an attorney.

Other answer:

Mike:
https://usinsuranceagents.com/answers/12…

With 2 policies, then (both) can only pay max of your losses, in other words, they split it out, so that each pays, but you don't get paid more, but what insurance would have paid if you only had one. So, like the article above, each company can dispute (who) owes, or not pay.

http://cgbgroup.com/pdf/LC_Coinsurance_C…
Per your other questions, state you bought a $35,000 policy and the replacement is $90,000. They could deny based on the co-insurance clause, that you did not buy (enough) insurance. This site gives an example of this.

Arson, 2 policies and "possibly" not enough insurance, they maybe suspecting fraud on you, thus denying paying. When insurance denies, they must send a letter in writing of the reason for the denial.

You have 2 options. Google your state and insurance department and/or commissioner. On that site should show complaints, so you could file a complaint for the denial of your claim. Once filed, then the insurance company has 30 days to file an answer.

Or, make an appointment (in person) with a lawyer for your legal rights, to see if in fact you have a bad faith claim or not. Google bad faith homeowner claims, (your state) and will find a ton of lawyers out there. If, a lawyer believes there was bad faith, then that is a no no in the insurance industry.

Casey Y:
This sounds terribly suspicious, since having two separate policies on a property that was destroyed by arson is about the biggest red flag on the planet.

Did you receive a reservation of rights letter, where they say they will be investigating? Or, did you actual receive a claim denial? Either way, given the situation, might be time to hire a Public Adjuster.

car253:
Allstate probly just does not want to pay. As long as one company paid, I won't worry about the other company. Now with this claim the company may cancel your policy. You got their insurance and now you have a claim. Don't be surprised if they cancel your policy and you may not be able to find homeowners insurance again for a long time.
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Insurance Pickle.com:
Sounds fishy to me as well. Generally people would use one to replace the other – one ending October 31st and the other starting Nov 1. If you're overlapping them and then something happens….it sounds fishy.
curtisports2:
You cannot collect twice for the same claim. It is YOUR responsibility to see that you do not have overlapping coverage from more than one company.
Judy:
Did the new company cover it? You can't collect from both anyway.
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