An insurance company argues that it has satisfied its obligations to Fairview Heights homeowners who seek additional funds after their home caught fire in 2016.
Shelter Insurance filed the complaint July 22 in the U.S. District Court for the Southern District of Illinois against Donald and Tina Swann.
According to the complaint, Shelter issued a homeowners insurance policy to the Swanns on April 3, 2015. The Swann’s home located on Saint Clair Road in Fairview Heights suffered fire damage on March 15, 2016. Shelter allegedly adjusted the home loss claim and paid the defendants a total $96,683.71 for damage to the property. The payments were received in two separate checks, including a payment of $57,147.40 on Aug. 2, 2016, and $39,536.31 on March 24, 2017.
Shelter allegedly adjusted the personal property claim and paid the defendants $42,626.29 through six payments made between May 2, 2016 and April 7, 2017. The insurer also allegedly paid the defendants $7,690.69 in additional living expenses.
Then on Dec. 6, 2019, Shelter received a letter from an attorney representing the Swanns demanding replacement costs on the property and an appraisal under the policy’s terms.
Shelter argues in its complaint that it does not owe replacement costs on the home because the property went into foreclosure and the defendants did not make repairs prior to the foreclosure. The insurer also argues that it does not owe replacement costs because replacement did not take place within the prescribed time period.
“When Shelter tendered its payments, the last of which was on April 7, 2017, there was an explicit understanding that the payment was in full payment of all demands by defendants,” the suit states.
“Defendants accepted the payments with the understanding that the payments were in full satisfaction of any loss arising out of the March 15, 2016 fire,” it continues.
Shelter seeks an order declaring that it does not owe replacement costs on the home and that “it discharged its duties under the policy when it paid actual cash value for the fire loss.”
The insurer is represented by attorney Peter Syregelas of Lindsay Pickett & Postel LLC in Chicago.
U.S. District Court for the Southern District of Illinois case number 3:20-cv-717