by Guest » Tue Sep 10, 2013 06:34 am
We had some good amount to downpour in our area few weeks back. The situation went to such extent that the FEMA had to get involved. Our basement flooded as the sump pump broke. We knew that it wouldn’t be covered by our policy, we still checked and interestingly found that it was covered under our policy. After few days, they mailed us a check and we used to to do the repairing works. However, after 6 weeks from the date the check was cashed and spent we received a letter from the carrier stating that they did a mistake and wanted their money back.
How should we handle this issue? We just have no means to pay it back. The sad part of the story is that the carrier is a major provider and serves numerous veterans and their families. Can we sue them? Thanks!
How should we handle this issue? We just have no means to pay it back. The sad part of the story is that the carrier is a major provider and serves numerous veterans and their families. Can we sue them? Thanks!
Posted: Tue Sep 10, 2013 01:38 pm Post Subject:
Sue them for what???!!!! For asking for their money back? What is your damage as a result?
What was the mistake?
Posted: Wed Sep 11, 2013 07:06 am Post Subject:
The flood was just because of the sump pump failure. This means that the flooding originated from under the house as the sump pit overflowed. I know very well that flood coverage isn’t included in any standard home insurance policy but we asked them and they said yes. Afterwards, they even sent the check. I understand that they did a mistake but they did it after reviewing everything and I’m not at all obligated to refund the amount. The basement was totally flooded; the pump was inoperative, the goods in the basement were damaged. We fixed the pump with it and bought new goods..
Posted: Wed Sep 11, 2013 01:11 pm Post Subject:
Even thought you did not specifically state what the mistake was, I'm assuming flood is not covered. You can return the money or not. I don't think the carrier has much of a leg to stand on when asking for the money back. It's called Waiver and Estopple and this is about as text book as it gets. They told you it was a covered loss, you relied on this information (they issued the payment and you used that money to address the loss) so they lost their right to change their minds. You could either right a letter back and explain that their waived their right to change their minds or you could just ignore them. I doubt they are going to do anything else on this matter.
Posted: Wed Sep 11, 2013 07:59 pm Post Subject:
Unless your claim was submitted fraudulently, which it apparently was not, the insurance company will have to chalk this one up to some dummy in the claims department and hope it doesn't happen again.
They can ask all they want to see if you'll return the money, but it's highly unlikely that they will pursue you legally to recover what they paid.
The flood was just because of the sump pump failure.
That's not quite true. The "flood" was the result of rain and it sounds to me like you live in a known flood zone. If that's true, you should purchase a National Flood Insurance Program policy. If your home is currently mortgaged, you are probably required to have the NFIP coverage, or your lender is forced to obtain it for you under federal law.Add your comment