Dealing with Home Insurance

[brockash]

Hi all, we're having some issues with our home and I was hoping someone could possibly help explain how home insurance works etc.

We've owned our home for 11 years, however DH is military and we've been renting it out for about 7 years.

Recently, it has come to our attention that there are issues with the roof. We had a roofing company go out to look at it and they stated that we should call our insurance company as they feel it would be best for the whole roof to be replaced. We called our insurance company and at first they seemed easy to work with and they had an independent adjuster out at the house a little over 3 weeks ago. At the time, there was some interior damage (ceiling damage in a couple of the rooms). Now, since it's been 3 weeks and the area has gotten a lot of rain, it seems that the interior damage has gotten much worse (apparently there is a small area in one of the ceilings in which the ceiling has basically caved in and there's a small hole in part of the ceiling.) The roof has since been re-tarped, but our insurance company still has not made any decisions.

I've been in constant contact with them, and at first they said they had to send it back to the independent adjuster for clarification and a revised report, although that's been over a week and a half now. Monday, while trying to get an update, I explained that the interior damage has gotten worse and asked if the independent adjuster would need to go back out to the property. Supposedly, the claims adjuster has been "working with his supervisor" to determine if the house will now need to be re-inspected. It's now 3 days later and still no answer.

I've tried being patient and nice about it, but it's extremely frustrating, not to mention the frustration it is having on our current tenants. Last night, after again checking for an update and expressing my concerns, the claims adjuster said that I should just go and make the repairs as if the insurance wouldn't cover anything, but to keep all of my receipts.

I am just so frustrated and I've never filed any kind of insurance claim before, so I really have no idea how it works.

I read online that when an insurance company settles a claim they make the check out to the home owner and the mortgage company. If this is the case, how does this work?

My dsis, had to have some work done on her home last year and she said the company the did the repairs worked directly with the insurance company and that the insurance paid them directly and when they found out the damage was worse than initially thought, the company just told the insurance company and they immediately approved whatever the new cost was. -How often does it work out like this?

TIA for any info., input or experience, I just feel so naive and frustrated regarding the whole situation.

 

[lost*in*cyberspace]

I am confused - why would your homeowner's insurance cover the cost of replacing your roof? Was it damaged in a storm?

 

[brockash]

I am confused - why would your homeowner's insurance cover the cost of replacing your roof? Was it damaged in a storm?

I haven't been in the area in over 7 years, but this is what my property management company has told me. They believe the damage was due to a hail/wind storm that happened, and they believe that the insurance company should cover it, as does the roofing company that went out and looked at the roof. The area does get a lot of storms, but honestly I wasn't there so I didn't witness it for myself, just going off what the companies in the area are telling me.

 

[IUTBAM]

I've been through two homeowner's claims in the last several years, so I have some experience with this. Our insurance company (USAA) was a joy to work with though...I'm sorry you are having problems.

Yes, if you hold a mortage, the insurance company will make the check out to you AND the mortgage company (and depending on how the repairs are arranged, it may also be made out to the contractor, you and the mortage company). They include the mortage company because the mortgage company holds the lien, and the mortgage company wants to make sure that the repairs are completed, and that you don't just take the money and not do the repairs.

You will have to send the check to the mortage company for endorsement after you have endorsed it (or in our case, our mortgage is through USAA and held by Chase, so I only had to go to a local Chase branch to get it taken care of). The mortgage company will want proof that the work was completed (possibly in the form of a signed release of mechanic's lien by the contractor). Different scenarios will happen depending on the insurer, and the amount of the claim.

 

[Good Morning Dewdrop]

I've been through two homeowner's claims in the last several years, so I have some experience with this. Our insurance company (USAA) was a joy to work with though...I'm sorry you are having problems.

Yes, if you hold a mortage, the insurance company will make the check out to you AND the mortgage company (and depending on how the repairs are arranged, it may also be made out to the contractor, you and the mortage company). They include the mortage company because the mortgage company holds the lien, and the mortgage company wants to make sure that the repairs are completed, and that you don't just take the money and not do the repairs.

You will have to send the check to the mortage company for endorsement after you have endorsed it (or in our case, our mortgage is through USAA and held by Chase, so I only had to go to a local Chase branch to get it taken care of). The mortgage company will want proof that the work was completed (possibly in the form of a signed release of mechanic's lien by the contractor). Different scenarios will happen depending on the insurer, and the amount of the claim.

actually (bolded) it depends on your insurance company. We had a claim for the first time last year - we have AMICA - they made the check out to us and we took it to the bank. Mortgage company was not involved at all.

Not sure if it matters or not but we were working with a company they (AMICA) recommended for the repairs. We received the check (as I recall) before the repairs were completed. Banked it and wrote the repairing company a check.

 

[kathie859]

I wonder if there's an issue with the home being a rental and NOT owner occupied? Is it insured as a rental (usually more expensive and harder to get) or as a primary residence? It might make a difference.

 

[brockash]

I wonder if there's an issue with the home being a rental and NOT owner occupied? Is it insured as a rental (usually more expensive and harder to get) or as a primary residence? It might make a difference.

I don't think so. They know it's a rental and it's insured as so. I checked over the weekend, just to make sure, and it shows that it is being used as a rental property and some kind of insurance coverage for that. -Not really sure what, but it's there.

 

[chris31997]

Time to call the adjuster IF you know his name. Time to take it above the first person you talk to when you call.

The key is to be super nice when you talk to them and when you ask for the supervisor and then his supervisor.......

You can also get your realator to make a call.

 

[kathie859]

Time to call the adjuster IF you know his name. Time to take it above the first person you talk to when you call.

The key is to be super nice when you talk to them and when you ask for the supervisor and then his supervisor.......

You can also get your realator to make a call.

Why would a realtor be involved

 

[msmayor]

Well one reason your insurance company may be dragging their heels is timing. When was this storm that supposedly did the damage? Recently? Six months ago? A year ago?

If the storm happened a while ago I would not expect the insurance company to cover all the cost, if at all.some of the damage may be due to your delay in claiming that a storm caused the damage, so that would be on you.

 

[usd2bmd]

Well one reason your insurance company may be dragging their heels is timing. When was this storm that supposedly did the damage? Recently? Six months ago? A year ago?

If the storm happened a while ago I would not expect the insurance company to cover all the cost, if at all.some of the damage may be due to your delay in claiming that a storm caused the damage, so that would be on you.

This may be the issue...I have worked in the insurance industry for years...there are certain things that I know to be universal..
1) You as the owner have a duty to report a claim as soon as possible. I f you don't live in the area there should be someone that is taking care of the property in your absence. I would expect that they would be checking on it, especially if you live in an area prone to storms.

2) once a claim is reported, you have a duty to protect your home from further damage. In this case it would mean tarping the roof or in some way protecting the interior from further damage.

3) With most Insurance policies there is a threshold and if the claim is over that threshold the mortgage company has to be listed on the check. It's the law and no insurance company should ignore it because the mortgage company can (and will) come after the insurance company for the amount of the damages. some mtg companies will disperse the funds as the work is being done and some may even require inspections as the work gets done. You have to remember that they have a large stake in the work being done properly as well.

When you think of what your policy covers think of it this way...the policy for your building covers sudden and accidental damage (i.e. it happened at one time and not over a period of time)

Right now they may be trying to figure out what is sudden and accidental and what happened over a period of time. Damage that occurs over a period of time is not covered.

And to answer your question about your dsis, it doesn't usually work that way. all insurance companies have a program they use to determine the cost of the repairs your home needs, very few (none that I am aware of) will take the word of a contractor and just pay what he says it will cost.

On the flip side most contractors will take the price the insurance company give because if they do this work on a regular basis they know that the prices are in line with national averages.

Just remember the majority of insurance companies WANT to pay what they owe, but it is sometimes hard to determine what is and is not covered damage.

 

[chloelovesdisney]

How old is the roof? I'd have just replaced it, doesn't really sound like an insurance issue.

 

[TaraPA]

Maybe they're looking for proof it was storm damage rather than normal wear & tear? They would need some sort of proof I'd think rather than the mgmt. company & contractor just saying they think it was storm related. And if it wasn't reported right after the storm , that would raise some questions as well. We had roof damage after Hurricane Sandy & I waited 2 weeks to report it & they were all over me why I waited that long. We had no power or water for a week & it took the 2nd week just to get back to normal & get the ball rolling on insurance. So if you waited to report this, there could be some concern that it's just routine deterioration of the roof, which could be normal with an 11-year old one.

Our insurance company (Erie) sent an adjustor within 6 weeks (they were overloaded with Hurricane Sandy claims so I understood it would not be a quick process), and we had the check, made out to us, within 4 weeks. Done deal. We hired a local contractor to do the work & so far so good, no more leaks!

 

[Jey12]

A PP has explained most of the issues very well as far as universal insurance rules. We had to file a claim from a tree a few years ago and called right away. It took our insurance company a month to come out and during that time we were instructed to take pictures as everything stood right then and do what we could to protect the house from any further damage. It wasn't a large claim so the check was made out to us, but it was the adjuster who decided what would be paid out. They often have a pre set amount of what they will pay for replacement materials and labor. If needed they had a list of contractors we could choose to use that they work with on a regular basis.

Also from my understanding if you have rental insurance on the house often that only covers things such as the roof, frame and other physical structures of the house. Your renters are responsible to carry renters insurance to cover any of their personal property that may be damaged. With my company rental insurance is cheaper than what you pay on your own home because it does not cover personal items inside the house, but I suppose that could vary from state to state.

Normally there is a time frame after the initial incident to report a claim. If you file after that time frame an adjuster will have to try and figure out what was actually damaged during the incident vs. wear and tear due to neglect past the timeframe. Also depending on the age of the roof the payout maybe adjusted to reflect age and cost of materials and labor. Usually there's a formula they use to figure that amount.

My suggestion is to figure out when the incident that could have caused the original damage to happen and read your policy. If you are within that time frame the original damage should be covered but additional damage due to not protecting the property may not be. If your renter's personal property was damaged from the leaking roof they will need to turn that into their renters insurance. If you are within the time frame as outlined in your policy and your insurance company refuses to pay, give your state insurance commissioner's office a call and at least discuss your concerns. They should be able to guide you if any further steps can be taken or if you should chalk it up to a lesson learned and replace the roof.

 

[dalegibbs]

Your insurance company will pay you only if your roof was damaged due to storm or it got leaked. And in that case too you should hire a public adjuster who will file a claim with your insurance company. During the claims process your adjuster will take a physical inventory, obtain all relevant appraisals and ensure that all provisions of your policy are satisfied.

water damage boca raton

 

[PlutoPony]

Is your insurance thru USAA by any chance? We had a nasty hail storm several years ago that damaged roofs and sidings in our area. Most of us had no problem getting insurance to cover it (total replacement of roofs and siding) but I don't know of anyone with USAA who was able to get replacement. The best those people could do was repair of the roofs in damaged spots and just replacing a few areas of siding, not total replacement. These were ~10 year old houses at the time and it wasn't possible to perfectly match roof and siding so the "repairs" were very visible. There was a lot of talk at the time about USAA having really good insurance rates but being very stingy when it came time to pay a claim.....

 

[pryncess527]

Is your insurance thru USAA by any chance? We had a nasty hail storm several years ago that damaged roofs and sidings in our area. Most of us had no problem getting insurance to cover it (total replacement of roofs and siding) but I don't know of anyone with USAA who was able to get replacement. The best those people could do was repair of the roofs in damaged spots and just replacing a few areas of siding, not total replacement. These were ~10 year old houses at the time and it wasn't possible to perfectly match roof and siding so the "repairs" were very visible. There was a lot of talk at the time about USAA having really good insurance rates but being very stingy when it came time to pay a claim.....

That's interesting, they were not stingy with me at all!! I recently had a housefire and I called them expecting them to cover the stove and damage to the cabinets. I had just bought cleaning supplies and was ready to spend my weekend cleaning the soot out of my house when they called and insisted on sending a professional cleaning crew over, dry cleaned everything in my house, and spent over $14,000 (and they haven't even gotten to the appliance/cabinet replacement yet).