Minich

I.

INTRODUCTION

Allstate Insurance Company (Allstate) issued Kelly and Debbie Minich (the Minichs) a homeowners insurance policy (Policy) that provided that Allstate would pay the Minichs the “actual cash value” of their house, in an amount not to exceed the “limit of liability shown on the Policy Declarations,” if the house were damaged or destroyed. 1 The “Building Structure Reimbursement” provision of the Policy provided that Allstate would pay the Minichs an amount in excess of the actual cash value if the Minichs were to “repair, rebuild or replace” their house. An endorsement to the Policy modified the “Building Structure Reimbursement” provision to state that this additional payment would not exceed “150% of the limit of liability.”

*480 After the Minichs’ house was destroyed by a fire, Allstate paid the Minichs $129,590—the limit of liability as shown on the Policy’s declarations, minus a $250 deductible. However, Allstate refused to pay the additional $64,920 provided for in the endorsement until the Minichs furnished Allstate with evidence that they were, in fact, rebuilding their house. Allstate paid the Minichs the additional $64,920 approximately 15 months…