The buy and seller could not agree on the price reduction because of the damage; however, the seller agreed to reduce the selling price by the amount of the insurance settlement to be received after the sale.

The insurer has asked to see any purchase agreements, even if they are several months after the loss. They want to see if there are any renovations. If so, they state the value of the wall coverings and carpeting would be nonexistent if they were to be replaced by the new owner.

We believe that the sale, being after the loss, has no bearing on the actual value of the loss at the time of the loss. The sale or the documents pertaining to the sale are of no relevance to this claim.

Illinois Subscriber

A

The decisions made by a property owner relative to the disposition of the property following a loss have no effect on the value of the property at the time of a loss. An insured could even decide to give the damaged property to another. That would not in any way reduce the insured's entitlement to the proceeds from the insurance policy, nor would it alter in any way the actual cash value of the property at the time of the loss.

Whether a subsequent owner would discard the wall coverings and carpeting has no bearing on the value of the property at the time of the loss. The insurer's right to investigate the private dealings between the insured and a prospective purchaser would be a legal matter. However, it is difficult to understand how the tentative plans of a prospective purchaser could have a genuine effect on the actual cash value of the insured's property.