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WALL of SHAME
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FIRE DAMAGE
What do you do when a fire takes everything away from you? Who do you turn to? These homeowners were in the process of remodeling and had most of their personal belongings in the garage that adjoins their house when spontaneous combustion stole everything and turned their lives upside down. Aside from the emotional trauma of losing so much so fast, these homeowners were faced with an insurance company that seemed intent on paying as little as possible to restore their home and personal property to pre-loss condition. Rather than swooping in and putting their lives back together as they thought their insurance policy promised, their insurance company's Adjusters chose, rather than fully investigate the homeowners rights to follow standard operating procedures at a time when these policyholders, as fire victims, were in their most vulnerable state.
Unfortunately, this is not an uncommon experience. Homeowners are confronted with the choice of taking a fast, unfair settlement or fighting for a slow, fair settlement. It is becoming commonplace in the industry - fast or fair... but not both. Using the claims department to minimize claims for higher profits instead of a tool for delivering the indemnity that was promised extends to nearly every insurance company in the US to one degree or another.
The stance that this insurance company took was that the garage was an exterior structure and had only "LIMITED COVERAGE" even though that would place all the blame on the insurance agent who originated the policy. Furthermore, the garage had power and plumbing and shares the same foundation/concrete pad as the dwelling so it is clearly not a separate structure.
Unfortunately, this is not an uncommon experience. Homeowners are confronted with the choice of taking a fast, unfair settlement or fighting for a slow, fair settlement. It is becoming commonplace in the industry - fast or fair... but not both. Using the claims department to minimize claims for higher profits instead of a tool for delivering the indemnity that was promised extends to nearly every insurance company in the US to one degree or another.
The stance that this insurance company took was that the garage was an exterior structure and had only "LIMITED COVERAGE" even though that would place all the blame on the insurance agent who originated the policy. Furthermore, the garage had power and plumbing and shares the same foundation/concrete pad as the dwelling so it is clearly not a separate structure.
Finding a restoration contractor that works closely with legal counsel is clearly the best avenue for fighting the necessary fight with your insurance company when your energy, emotional capacity, and bank accounts are drained to the point that you don't have the resources to act on your own behalf. Coastal Building & Restoration is a champion for the downtrodden.
We are committed to a 'Just' outcome for our Clients regardless of how difficult the road is to travel. As a Client with fire damage, your greatest challenge is to hold the course and commit to seeing the process through. For more detailed information on fire damage, visit the Residential or Commercial pages on our web site. |
The adjusting arm of this insurance company clearly pursued an avenue of denial and delay of settlement even though the policy clearly provides adequate coverage. This makes the claims process painful for the policyholder and creates a effective deterrent for those who expect their insurance company to settle promptly and fairly. It also allows the insurance company to continue reaping the investment benefits of their Operating Income while the settlement process is being dragged out - instead of fulfilling their obligation as trustee of policyholder premiums.
Contents - Actual Cash Value (ACV)Nearly all insurance policies pay only the depreciated value of contents. This poses a huge problem for property owners. Does it seem right to receive a check for $30,000 for your damaged/lost belongings when it will cost $90,000 to replace them? Of course not! Nearly all insurance companies offer a fairly low cost-option to cover the replacement of contents rather than Actual Cash Value.
Pick up the phone and fix your insurance policy RIGHT NOW and make sure you have a "RCV" policy! Also, start documenting the property that you own today. State Farm provides an excellent checklist. They also have an excellent Personal Property Form which you can use for any type of loss. |
Additional Living Expenses (ALE)
Homeowner's Insurance usually lists ALE under Coverage D - Loss of Use. Loss of Use creates problems for property owners. For commercial property, Loss of Use often means loss of income. Sadly, many commercial insurance policies do not properly address this issue. In 2006 a horse ranch in Central Oregon that specializes in riding classes and hosting events experienced substantial damage from hail and wind. The horses were beaten so badly by the hailstones that they could not be ridden for more than two weeks. Repairs to the property also substantially impacted the ranch's business operations. The insurance company paid for repairing the structures on the property but the lost business income could not be recovered. The property owners' insurance agent had put them in a Farm policy instead of a Ranch policy. They had coverage for damaged crops but nothing for Loss of Use! Too bad they didn't grow crops! For a homeowner, ALE means any necessary increases in living expenses incurred by the homeowner so that the household can maintain its normal standard of living. This would cover temporary housing, Laundry & dry cleaning, meals, boarding costs for pets, increased transportation costs (drive further to get to work/school), furniture rental, relocation & storage expenses, telephone & utility installation costs at a temporary residence, etc. This area is often overlooked and causes most claimants substantial financial discomfort. Most insurance companies will pay advances to help with ALE but will not offer - you have to ask. Click HERE for an excellent ALE worksheet.
