Home Insurance woes, any suggestions?

[eecoil]

Any suggestion would be gratefully accepted. Here in a nutshell (big nutshell) is what has happened:

We have been homeoweners for the past 11 years with no claims on home insurance. Six months ago there was water damage to the house from a roof leak. The house has been maintained very well and the home inspected prior to purchase. We filed a claim with our home insurance with prooof of loss. Also included estimates from an independent adjuster for cost of repairs to the tune of 60,000. Independent adjuster to get 10% of settlement, and was recommended. The insurance company sent in a team of people who took measurements, photographs etc., Soon afterwards we were ordered to come to a legal deposition before their attorneys. At this point, our independent adjuster recommended we retain our own counsel and suggested one. Attorney was also retained on a contingency basis with 30% of settlement if settled without a lawsuit, and 38% if a court case is to be filed. Two months after deposition, our claim was denied with blatantly frivolous reasons.

1) Our attorney states that this is the usual trend with this particular insurance company in Michigan and he was expecting this outcome.
2) There is no 'bad-faith' legal protection under Michigan law for insurance companies. Hence no punitive damages and the best outcome for a plaintif in court is the amount of claim with simple interest. As such, there is no incentive for insurance companies to fairly adjudicate any large claims. In fact (per our attorney) they routinely deny valid claims.
3) Most claims however are settled just before trial, usually after a period of 18 months, for a portion of the claim. In the meantime we incur cost of legal depositions, expert witnessess etc.,

At this point we decided that we will cut our losses and dropped the attorney. Given the long drawn process, and our inexperience with the legal system, we feel it is not worth the effort for a reduced award which will be further decimated by court costs, expenses, and after adjusters / attorneys cuts.

Essentially we feel totally cheated by the whole process. There ought to be a better way to settle this than the obvious legal route. Are we missing something here? Even if we had saved all the premiums over the past years it seems like we would have come out ahead.

Well, thanks for the opportunity to vent my frustration. Again, we would be grateful for any suggestions.

 

[Vette73]

File the claim yourself.

But WTF is...

" Independent adjuster to get 10% of settlement "


Why did you just not call the insurance company up and have them look first?

 

[FoBoT]

holy crap

i think your only recourse is the state insurance commissioner/board and your state representative in your state legislature. if the laws let insurance companies deny valid claims, then you need the laws changed

good luck, that royally sucks

 

[eecoil]

Originally posted by: Marlin1975
File the claim yourself.

But WTF is...

" Independent adjuster to get 10% of settlement "


Why did you just not call the insurance company up and have them look first?

We did inform the insurance company, and their adjuster did come down a few times to inspect.

 

[DBL]

Originally posted by: Marlin1975
File the claim yourself.

But WTF is...

" Independent adjuster to get 10% of settlement "


Why did you just not call the insurance company up and have them look first?

can you say "conflict of interest"?

Also, what was the insurance companies offer after they assesed the situation?

 

[EagleKeeper]

Was the insurance company estimate "outside the ball park" on the repairs or on the additional damage to contents?

They should get the place repaired for the estimated cost, less the deductable.
If when the work is started and additional problems are discovered; the adjuster should come back and re-evaluate the situation.

It seems like you (by getting your own adjuster up front) attempted to get a check from the insurance company that could be padded, instead of having the work performed.

You seemed to have gone into the process with a confrontational attittude and therefore it costed you money.

They called your bluff.

 

[Armitage]

$60K in claims for a leaky roof!?
Details?

 

[bunker]

Which insurance company? I'm in MI and would like to make sure I avoid them.

 

[Conky]

Insurance companies are the devil.

They exist to collect premiums and avoid payment of claims. They boost "profits" by denying claims.

Unfortunately the lawyer is your only recourse as state insurance departments are essentially run by the insurance companies. Did I mention that insurance companies are the devil? :laugh:

 

[waggy]

Originally posted by: Armitage
$60K in claims for a leaky roof!?
Details?

hmm yeah we need details. heck in my old house i had the roof leak and we had to re-roof it and fix some walls inside and it didn't come near $60k.

there have must have been a crap load of damage then. did you have a 2nd person come in and give you a amount?

 

[eecoil]

Originally posted by: EagleKeeper
Was the insurance company estimate "outside the ball park" on the repairs or on the additional damage to contents?

They should get the place repaired for the estimated cost, less the deductable.
If when the work is started and additional problems are discovered; the adjuster should come back and re-evaluate the situation.

It seems like you (by getting your own adjuster up front) attempted to get a check from the insurance company that could be padded, instead of having the work performed.

You seemed to have gone into the process with a confrontational attittude and therefore it costed you money.

They called your bluff.

Far from it. It was only after the visits of the adjuster and his team (photographer, etc.,) and on his advise to submit (I think) 2 quotations, that we decided on the independent adjuster. We did not, and do not have any intention of 'padding' the estimate. We submitted 3 quotations, including that of the independent adjuster, and the amounts were all in the same ball park. Also, till date the insurance company has done nothing to do the repair themselves and seem to be dragging their feet from the beginning.

 

[eecoil]

Originally posted by: Armitage
$60K in claims for a leaky roof!?
Details?

$60K is not to fix the leaky roof. Roof damage is not covered. Water seepage into two rooms beneath. Ours is a quad level home. Damage caused to dry wall, carpeting etc.,

 

[MisterJackson]

Write your congressman (or woman as the case may be)

 

[eecoil]

Originally posted by: bunker
Which insurance company? I'm in MI and would like to make sure I avoid them.

You have PM.

 

[Armitage]

Originally posted by: eecoil

Originally posted by: Armitage
$60K in claims for a leaky roof!?
Details?

$60K is not to fix the leaky roof. Roof damage is not covered. Water seepage into two rooms beneath. Ours is a quad level home. Damage caused to dry wall, carpeting etc.,

Yea, I know they won't pay to fix the roof itself, unless it's a covered loss (hail, tree falling on it, etc.) But $60K for carpets, drywall, insulation? Is there something extraordinary about this carpet or drywall finishing? How big an area was damaged?

Not trying to be an ass, just trying to understand how a leaky roof did $60K in damage.

 

[waggy]

Originally posted by: eecoil

Originally posted by: Armitage
$60K in claims for a leaky roof!?
Details?

$60K is not to fix the leaky roof. Roof damage is not covered. Water seepage into two rooms beneath. Ours is a quad level home. Damage caused to dry wall, carpeting etc.,

you have pics of the damage? im shocked that a leak did that much damage. I have had a leaky roof in my old farm house that did nowhere near that amount and we had to re-roof and redo a room. but then again that was 5 years ago.

 

[boomerang]

Would you PM me also. I'm from MI too.

I have nothing but contempt for insurance companies. They are very happy to take in money, but when it comes to paying it out ........ well that's not really the business they're in. My guess is that Katrina is affecting your situation. Too many losses and they must cut expenses wherever they can.

 

[eecoil]

Originally posted by: Armitage

Originally posted by: eecoil

Originally posted by: Armitage
$60K in claims for a leaky roof!?
Details?

$60K is not to fix the leaky roof. Roof damage is not covered. Water seepage into two rooms beneath. Ours is a quad level home. Damage caused to dry wall, carpeting etc.,

Yea, I know they won't pay to fix the roof itself, unless it's a covered loss (hail, tree falling on it, etc.) But $60K for carpets, drywall, insulation? Is there something extraordinary about this carpet or drywall finishing? How big an area was damaged?

Not trying to be an ass, just trying to understand how a leaky roof did $60K in damage.

The roof leak happened in two parts of the house. The first part affected two rooms pretty badly needing extensive work to fix them. The other part affected three large rooms - which share the corner of the roof that leaked, to a lesser extent. Even these three rooms need carpet change and painting. The damage was exasperated by the fact that it happened when we were away. The total area needing work done is a little over 2,000 sq. feet. And yes, both the insurance adjuster as well as the independent adjuster took photographs of the damage.

 

[Armitage]

What was the estimate from the insurance company?

 

[LordSnailz]

Originally posted by: eecoil

Originally posted by: bunker
Which insurance company? I'm in MI and would like to make sure I avoid them.

You have PM.

mind pm'ing the ins. co as well?

 

[imported_weadjust]

Sounds like you used a public adjuster not an independent adjuster.

What was the cause of the damage to the roof? Wind ? Hail? The insurance co. will cover the loss if you have sudden and accidental damage to the roof.

If the roof is old and leaking due to wear and tear the ins. co will deny the claim.

 

[bayou]

You think you're having insurance company problems. You should be ilving in Louisiana trying to deal with the insurance companies. I have had 2 assessments by adjusters, got a check today that is far below the amount I am supposed to be getting. Looks like another call to the claims center tomorrow to find out wtf is going on now. This could be a full time job. :disgust:

 

[1sikbITCH]

Originally posted by: bayou
You think you're having insurance company problems. You should be ilving in Louisiana trying to deal with the insurance companies. I have had 2 assessments by adjusters, got a check today that is far below the amount I am supposed to be getting. Looks like another call to the claims center tomorrow to find out wtf is going on now. This could be a full time job. :disgust:

At least you got a check. They told the OP to go fvck himself to the tune of $60,000. That's enough to make some people load up all their firearms and go visit the insurance company.

 

[eecoil]

Originally posted by: weadjust
Sounds like you used a public adjuster not an independent adjuster.

What was the cause of the damage to the roof? Wind ? Hail? The insurance co. will cover the loss if you have sudden and accidental damage to the roof.

If the roof is old and leaking due to wear and tear the ins. co will deny the claim.

Ice dam and weight of the ice.
Bayou, I think I can understand how it should be dealing with insurance companies in Louisiana. There was also a news coverage of this on CNN.
In our case, they have outright rejected the claim.

Thanks to FoBoT for the suggestion regarding the state insurance commisioner. I should look it up. Also the tip regarding the state representative.

Armitage and others: There was no estimate from the insurance company!

 

[Vette73]

Originally posted by: eecoil

Originally posted by: weadjust
Sounds like you used a public adjuster not an independent adjuster.

What was the cause of the damage to the roof? Wind ? Hail? The insurance co. will cover the loss if you have sudden and accidental damage to the roof.

If the roof is old and leaking due to wear and tear the ins. co will deny the claim.

Ice dam and weight of the ice.
Bayou, I think I can understand how it should be dealing with insurance companies in Louisiana. There was also a news coverage of this on CNN.
In our case, they have outright rejected the claim.

Thanks to FoBoT for the suggestion regarding the state insurance commisioner. I should look it up. Also the tip regarding the state representative.

Armitage and others: There was no estimate from the insurance company!

So they juts out right denied the claim? What was their reason?

But yea here in NC the insurance commisioner is well known and does a very good job keeping rates down and watching insurance companies.