Just a little update with my post-hurricane insurance battle

This is an update to my earlier thread detailing the fun that I'm having.

The insurance company, apparently in their desire not to drag things out (dripping with sarcasm, that statement is) the insurance company let all deadlines lapse. They were given MUCH more time than the law allows, but they simply aren't doing anything.  
We don't anticipate bankruptcy. Our public adjuster has been watching the common sales outlets and they are not selling off assets, or portions of the business. Typically that happens a few months before they declare that they are bankrupt. So that's good news.

Due to their simple refusal to act, we have started litigation. Our PA said that usually prompts an offer within 10 business days. Today is day 9. They extended an offer. 

The offer is a joke. The settlement offer is for a little less than 4% of our claim lol.  Couple that with the check they sent and we're at about 8% of the total claim. 

We've settled in for the long haul. At this point I prefer to go to court so we can present the fact that they are only responding to 1 out of every 4 messages to them, the fact that they have never come to look at the damage that we have that they are denying (roof damage, interior water damage), the fact that they never set foot in the house to look at interior damage when they were here after the storm, the fact that they have blown by every deadline that the law has set in place, and on and on.  

I don't expect any updates for a while as the court system is slow. I do know that on or about the 1-year anniversary date the governor starts putting heat on insurance companies to settle claims. 

In reply to DrBoost :

https://www.cnn.com/2023/07/12/business/farmers-insurance-florida/index.html

I read this article today and thought about your mess.  

“Over the past 18 months in Florida, 15 home insurers have placed moratoriums on writing new business, four carriers have announced plans to voluntarily withdraw from the market and seven companies have been declared insolvent,” Mark Friedlander, a spokesperson for Insurance Information Institute, told CNN. “Currently, there are 18 Florida residential insurers on the state regulator’s watch list due to concerns over their financial health.”

I don't know alot about insurance, but I know that's bad. 

Not an insurance person but if an insurance company goes insolvent is there a back up?  I kind of remember that a lot of them insure themselves against their losses with like Lloyd's of London or something?  Government back up like FDIC?

Stampie said:

Not an insurance person but if an insurance company goes insolvent is there a back up?  I kind of remember that a lot of them insure themselves against their losses with like Lloyd's of London or something?  Government back up like FDIC?

Your savings account is your backup. Yup, we HAVE to buy insurance, but they don't HAVE to uphold their end of the bargain. And people in the insurance industry don't understand why they are hated.  
The storm hit on Wednesday morning. My friend had an e-mail in his inbox Friday morning that said his insurance company was bankrupt. Yup, before they paid out a penny, they screwed everyone.
I suspect that e-mail was drafted Monday morning and just waited until landfall and was sent. 

Seems to be a pretty wide spread problem.  Multiple companies won't even write policies in CA anymore.

Insurance is very much a basic numbers game though.  If the numbers don't add up (premiums vs payouts), it's simply not a viable business.

https://abcnews.go.com/US/wireStory/california-insurance-market-rattled-withdrawal-major-companies-99855058

For some reason I thought it was a numbers game like a bookie.   Don't know why it's in my head but I thought the game was insure for $xxx.  Reinsure $xxx for $yyy so that if the E36 M3 hit the fan you're still good with the difference between the two.

Sorry there wasn't a better resolution, it certainly sounds odd about their lack of inspection/investigation which pretty unusual for the companies I've worked for.  

Odds are it will not actually go to trial but rather settled pre-trial.  I would imagine there will further inspections possibly by an engineer, contractor and adjuster or all of the above.  This should give them a better idea of if the roof is repairable or requires full replacement.  This often comes down to age of the roof, code considerations etc.  The newer the roof, the more likely it is repairable.

Depending on the results they may decide to revise their offer or dig in their heels and defend their position.  

As mentioned in your previous post often times fences are specifically excluded so I would imagine they will stand on that denial.  

Good luck!  I'd expect it will be a several months process.  Make sure you ask for the details of any settlement and review the attorneys contract as far as their fee and what is covered in it. 

Any chance you can mention the name of the insurance company? 

I mentioned this before and people thought I was nuts, but every day I think more and more of paying off my house and self insuring. Its at the point were insurance is almost 50% of my mortgage payment, and I might not even be covered afterall. 

Stampie said:

Not an insurance person but if an insurance company goes insolvent is there a back up?  I kind of remember that a lot of them insure themselves against their losses with like Lloyd's of London or something?  Government back up like FDIC?

For some reason I thought insurance companies have to get their own insurance, and its always companies in the cayman islands or something like that. But then again, I watch a lot of movies, lol. 

Insurance companies are insured by reinsurers. Munich Re, Swiss Re, Zurich Re, Berkshire Hathaway, Lloyds...

Certainly not in my lane but from my understanding most do have reinsurance. 

It is a similar theory to any insurance.  They are responsible up to a certain amount (think deductible but in the millions of dollars) then the reinsurance kicks in.  I am sure it is more nuanced than that but that's the basic idea.  

The reinsurance rates is one of the reasons for rate increases and companies leaving the state.  

Don't get me started about insurance.....

So what happens if/when all the insurance companies fully pull out of the states they lose their ass in?

Slippery said:

Any chance you can mention the name of the insurance company? 
 

The insurance company is Edison, but I can't remember who they are a subsidiary of. 

I understand the insurance industry is like Vegas. It's not chance, it's math. They HAVE to come out on top or they won't exist. I totally get that. Every business makes a profit or it's charity.  
I pay rates that are like 5X what my rates were in Michigan, and my hurricane deductible is 4.5X my regular deductible. I accept that. It's part of living here. I don't begrudge the insurance company based on what I pay.

What I have an issue with is that I have been paying for a service for nearly 2 years. On time. Every month. Required by the mortgage company (I understand this as well, it's still their property). What I take issue with is that now it's time for them to provide that service and they simply refuse to do it in anything resembling a timely manner, or by the laws set out. They know they have us by the short hairs, and they will pull and tug those hairs simply because they can. 

People that are on that side of the fence will tell you any delay surely isn't intentional, but when you're living it from the other side of the fence, it clearly is.  

To give you a taste of the craziness that we're dealing with. Initially the insurance adjuster said the fence wasn't covered, then they decided to give us $500 to fix this.  

BEFORE

AFTER

Ok, let's assume 100% of those pieces can simply be reassembled. There's more than $500 in labor to do that. All of the missing 4X4 uprights need to be replaced, a good number of the uprights that are still in the ground need to be replaced, I'd say about 1/2 of them are bent, ripped, or broken, but being held up by the top and bottom rails. Many of the bottom rails you see in place are damaged, most of the top rails are ok. Most of the vertical slats are fine, but there are a LOT missing.  
So yeah, the insurance company says this can be fixed for $500.
That's the level of 'screw you' we're working with here. 

Oh insurance....  paying for the privilege of hearing, "your claim has been denied."

In reply to DrBoost :

They should be able to find a company that will fix it for $500 then, and cover any costs above their estimate...or better yet, maybe one of their executives can come out and fix it for $500

Typically fencing is either completely excluded under hurricane losses as they are very susceptible to hurricane damage.  Not nice but very common. If covered they would be limited to Coverage B (other structures) limits which a percentage of the main dwelling limits.  Those usually can be adjusted up or down but are usually 2-5 percent of the dwelling limits. 

For example when I built my shop I increased my limits way up since before all that I had was fencing and a couple small box store sheds.  

Not sure where they came up with $500 unless that is a debris removal limit, again a common limit for trees and whatnot that damage covered property.  

I would encourage everyone to read their policies especially the hurricane limits and exclusions if you live in hurricane prone areas. 

Looks like a newer roof without obvious wind damage from your pictures which is likely their take on that.

Not saying you are getting a fair shake but there are often reasons behind things. 

RevRico said:

So what happens if/when all the insurance companies fully pull out of the states they lose their ass in?

Then it becomes darn hard to finance a house! 

My understanding is that you do not HAVE to buy home insurance. But if you have a home loan (which most do), then the lender requires it to cover their asset. 

All these stories really make me think twice about who we buy insurance from. Generally it is something that consumers are very price sensitive on, but the price clearly isn't the only differentiator between companies (nor maybe not the most important differntiator). 

Robbie (Forum Supporter) said:

RevRico said:

So what happens if/when all the insurance companies fully pull out of the states they lose their ass in?

Then it becomes darn hard to finance a house! 

My understanding is that you do not HAVE to buy home insurance. But if you have a home loan (which most do), then the lender requires it to cover their asset. 

All these stories really make me think twice about who we buy insurance from. Generally it is something that consumers are very price sensitive on, but the price clearly isn't the only differentiator between companies (nor maybe not the most important differntiator). 

In Florida there are not that many options. I only had two options last year, so you really are screwed. 

Also, if no insurance, then your mortgage lender will gladly charge you a huge sum to get insurance for you. My brother had that surprise one time he did not realized his insurance had dropped him and Citi stepped in with their own insurance and billed him. 

DrBoost said:

Slippery said:

Any chance you can mention the name of the insurance company? 
 

The insurance company is Edison, but I can't remember who they are a subsidiary of. 

Ok, not the same one I have. Not that it means much anyways. 

Greg Voth said:

Typically fencing is either completely excluded under hurricane losses as they are very susceptible to hurricane damage.  Not nice but very common. If covered they would be limited to Coverage B (other structures) limits which a percentage of the main dwelling limits. 

Shockingly, and good for us, they covered it under coverage A. That's good for us because it's under A, and they've admitted to it being covered.

in this situation, would the lender have any muscle to get their asset covered? or is this just another path to Dr Boost getting his sphincter further dilated?

Not that I've seen on the mortgage front.  The only usual involvement they have is getting their name on there check and issue dispersement in draws based on the completion of the repairs.  Outside of that it's only when the house is in foreclosure.  

I am not trying to be a shill just offer advise and perspective.  Still going back and forth with my carrier on my claim and even knowing the process it's been frustrating to say there least.  My wife would be lost handling it and she is waaaaay smarter than me. Not to mention I just got my renewal for $8900 =)

this is an insane story man,