by Guest » Sat Apr 12, 2014 11:53 am
We had a water pipe burst in our home that resulted in damages to multiple rooms. That night we contacted a licensed and approved water restoration contractor to assist. When we contacted the claims department of our insurance co. they suggested that we cancel that call immediately and use their restoration contractor otherwise the work may not get fully covered. For the sake of your readers, this is a huge red flag, it sounds very reasonable to a policy holder when there is trouble and you need assistance, but by state law the insurance co. cannot legally dictate who you use to properly restore your home.
We are twelve weeks into the negotiations. The insurance co. has dragged out discussions and denied responsibilities for some required work. On week three their restoration co. came back at our request and using a non-pinned water meter confirmed that there was still moisture in the house and under the ceramic tile flooring. On week ten I got frustrated, brought in a private adjustor and an environmental consulate. We have concluded that there is mold forming in the house. Air scrubbers have been brought in to contain the environment. Two independent teams have confirmed that the insurance co. & their reps did not properly dry out the house. Now the Insurance co is using the $10K limit on mold against us in the policy and is suggesting that we sign a waiver of release to settle the claim. Can they legally do this and why should the $10k limit apply when their actions caused the mold damage. This is a state of FL claim.
We are twelve weeks into the negotiations. The insurance co. has dragged out discussions and denied responsibilities for some required work. On week three their restoration co. came back at our request and using a non-pinned water meter confirmed that there was still moisture in the house and under the ceramic tile flooring. On week ten I got frustrated, brought in a private adjustor and an environmental consulate. We have concluded that there is mold forming in the house. Air scrubbers have been brought in to contain the environment. Two independent teams have confirmed that the insurance co. & their reps did not properly dry out the house. Now the Insurance co is using the $10K limit on mold against us in the policy and is suggesting that we sign a waiver of release to settle the claim. Can they legally do this and why should the $10k limit apply when their actions caused the mold damage. This is a state of FL claim.
Posted: Sat Apr 12, 2014 02:23 pm Post Subject:
First, you mention that the insurance company told you unless you use their recommended company that the loss may not be covered. Of course, this is Bad Faith. However, I'm sure they will deny that this was said. Instead they will state an option was given. The only time this will come into play is if you were to file a Bad Faith lawsuit against them.
You mention that your carrier wants you to sign a release. I find this hard to believe as its 100% obvious Bad Faith. If I were you I'd ask them to send you the release and if they do, don't sign it... just keep it. They cannot require that you waive your rights under the policy in order to get paid what you are owed. Again, that is 100% Bad Faith any way you look at it. If they send you a release then you can prove this very easily.
As far as the rest... I'd highly recommend that you seek advise and probable representation by an attorney. It's going to cost you part of what you are paid toward the repair cost but I think it's still in your best interest. Personally, I'd try to get that "release" before you tell your carrier that you are using an attorney. Perhaps consult with an attorney before hand and mention that you'd like to do it that way and see what he/she says. If your adjuster hears that you have an attorney they will probably then realize that they can't try to scam you with a release and then deny that it was sent out.
What would happen with the $10k limit and the restoration company "causing" the situation is that the carrier will deny that they required you to us that company and that the use of the company was ultimately your choice. Then, if the restoration company did not properly dry out the home then it's between you and the restoration company. You can certainly move forward with a claim against the restoration company anyway under the thought that they did not do the work correctly. I suspect that they have some type of waiver on their contract and if you signed it then there would be that issue as well. This is why I think you need an attorney. Personally, I think 99% if the public adjusters out there are useless. Most of them are clueless and got into the biz to just write up estimates and collect 7% on settlements as it's easy money. Your money is better spent paying an attorney in a situation like this.
You may want to first add up what you think you are owed and make a final demand of your insurance company. See what they have to offer. If it's not even close to what you think you are owed, look at hiring an attorney.
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