Total Loss due to Fire

[Victoria Hunkin]

Hi,

Wanted to get feed back on my situation. My rental property caught fire Aug 31 in Kentucky, it is a total loss. It was vacant and no one was hurt.

The problem I am having is that my lender is making me pay off the loan for this property that is now a total loss. The insurance company is saying it cannot issue more funds aside from the initial payment which is not enough to pay off the loan.

I have a few questions:

1. Can a lender basically call my loan because of the total loss? If so, should there be something in writing like a contract that states this?

2. Is there a way to get more money from my insurance claim. My dwelling coverage is over $200,000 and the loan pay off is $79k. The adjuster is coming back with a initial pay out of $75k. I need the funds to pay for a full demolition because the city has ordered it which leaves me with only $56,700 to go towards paying the loan. Is there a way to have more funds released to help pay the loan? Adjust says they will only release more fund to go towards rebuild or purchasing a new home.

3. Should I seek a insurance attorney to help handle?

I just don't see how this is reasonable. My property is a loss and yet I'm having to pay for the loan yet I have insurance. Any tip, advice or help? TIA

Should I seek legal representation?