by eastendliquidation » Tue Sep 04, 2012 07:18 pm
I have flood insurance and my businesss was in a flood last year. The insurance company paid me for 3 office chairs, I have a $1000.00 deductable. So I did not get anything from them, They would not pay me for the tools equipment and inventory which roughly came to $120,000.00. because I couldn't come up with receipts because everything went in the flood,file cabinets and all We had 2 ft on 2nd floor. What can I do?
Posted: Wed Sep 05, 2012 12:24 am Post Subject:
This is essentially a bad faith effort on the part of the insurers to deny your coverage. To a certain extent, it is an unreasonable demand -- to expect business records to survive a flood, when the business itself is washed away.
You may be able to demonstrate some of the ownership issues through bank records -- images of cancelled checks, monthly credit card statements, that sort of thing . . . even vendor records of your purchases, perhaps -- to document the tools, equipment, and inventory you purchased. It shouldn't be too difficult to document a significant part of the purchases and use that as the basis to extrapolate the total loss.
Your bank will probably want to charge you to "research" your account -- you just add that expense to your claim. The same might be true of your credit card companies, but given the nature of your request, they might be more willing to waive any fees. Your vendors should bend over backwards to assist you -- after all, don't they want your continued business?
Don't give up! Feel free to email me for more advice.
Posted: Wed Sep 05, 2012 12:41 am Post Subject:
Did the tools, equipment and inventory get washed away in the flood? How did that happen? If they were still there, then why could you not just send photos?
Posted: Wed Sep 05, 2012 12:52 am Post Subject:
then why could you not just send photos?
The insurance company is demanding receipts to prove ownership. How ridiculous is that?
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