Insurance/Recovery Tips
Repairing or Replacing - The contractor or dealer you use is up to you!
Whether you’re repairing or replacing a stick built home or a mobile home, the contractor or mobile home dealer you hire is up to you! California Insurance code 2695.9(b) states: “No insurer shall require that the insured have the property repaired by a specific individual or entity.” That is, the insurance adjuster cannot force you to use his or her construction or repair company.
2695.9(c) states: “(c) No insurer shall suggest or recommend that the insured have the property repaired by a specific individual or entity unless:
(1) the referral is expressly requested by the claimant; or
(2) the claimant has been informed in writing of the right to select a repair individual or entity and, if the claimant accepts the suggestion or recommendation, the insurer shall cause the damaged property to be restored to no less than its condition prior to the loss and repaired in a manner which meets accepted trade standards for good and workmanlike construction at no additional cost to the claimant other than as stated in the policy or as otherwise allowed by these regulations.
In other words, your insurance adjuster is not required to offer recommendations and should not offer any unless you ask for recommendations. Even if you ask for recommendations, the insurance company cannot require you to use a specific person or company. Use your own reasonable judgment and selection process to select a qualified contractor you think will do the best job for you.
http://www.insurance.ca.gov/0100-consumers/0060-information-guides/0060-other-topics/upload/regs_8_30_06_clean_copy.pdfSayre Fire- Next Steps for New Hampshire Homeowners
The April 21 announcement by the Department of Insurance regarding additional payments up to $46 million by AIG and New Hampshire Insurance is reassuring to homeowners affected by the 2008 Sayre fire in Sylmar, but what are the next steps?
DO NOT LET THEM USE ANY “SWORN STATEMENT IN PROOF OF LOSS” AGAINST YOU. DO NOT SIGN A “RELEASE” FOR ANY OF THE NEW MONEY. DO NOT SIGN A RELEASE UNTIL ALL RECOVERY ISSUES WITH THE INSURANCE ARE UNDERSTOOD AND YOU ARE HAPPY.
It is very unlikely AIG will simply send checks to homeowners for the additional 110% or 125%. Most likely, the homeowner will have to prove that the replacement cost of the dwelling loss exceeds the original policy limit and payments. You will need hard quotes giving exact numbers of how much it will cost to replace your losses. It is up to you to get the real numbers.
When getting “quotes” or “estimates” make sure you get very real numbers that you will be able to rely on when you go back to make the purchase. An “estimate” is only an estimate and not a guarantee that the price will be available when you are ready to replace your home may hurt you when do replace your home. If your replacement place is low, we have seen the insurance adjuster readily accept it to avoid paying a higher, more realistic price.
“Group” discounts are encouraging but we have seen the cost go up dramatically once the “sale” is completed or any deviation or delay occurs before the final purchase. Any price contingent on other factors such as the price is good only if we sell 25 homes, can also cost you additional replacement costs when the park is finally ready and you can actually replace. Using our example, what if you go back later and they haven't sold the required 25 homes?
The insurance company may treat this as a onetime deal. Make sure you get the right prices the first time so you don’t have to go back and hope their deal is still good. Remember, it may take some time for the insurance company to process all of these new requests, but now is the time to do your homework!
CARe, Succeeds in Additional $46 Million Sayre Fire Insurance Recovery
CARe worked in conjunction with Los Angeles city councilman's office, Richard Alarcon, to identify and resolve insurance settlement issues that resulted in the California Department of Insurance announcement of $46,000,000 in additional insurance funds for at least 360 residents of the Oakridge Mobile Park community.
Read the full press release HERE
See news coverage HERE
Read CDI's fact sheet HERE (PDF file)
Documentation beats Conversation
People who are prepared, settle first, whether it's for an insurance or legal claim. Whether you are 15 days or 15 months into your disaster recovery, documenting ALL of the costs of your insured loss is essential to receive a fair and full insurance settlement.
It is never too late nor is it ever too soon to GET YOUR NUMBERS!
Insurance company numbers are their numbers, NOT yours. For your best settlement, you need to get your numbers, starting with your house, since all other numbers are percentages based on your house!
NUMBERS TO GET:
- HOUSE (mobile, modular or mansion)
- TOTAL REPLACEMENT COST to “turn key” condition
- Qualify for “BUILDING EXTENSION” percentage
- Document BUILDING CODE requirements
- Collect any DEPRECIATION or HOLD BACK
- OTHER STRUCTURES
- Every structure on the property damaged or destroyed
- PERSONAL PROPERTY
- ALL items damaged or destroyed
- SALES TAX
- DELIVERY and SETUP
- MOVE BACK expenses
- Collect any DEPRECIATION or HOLD BACK
- ADDITIONAL LIVING EXPENSES (ALE)
- LOSS OF USE or LOSS OF RENTS
- RENTAL furniture
- Collect RECEIPTS for reimbursement
- Collect RECEIPTS for TAX record documentation
- MILEAGE expenses
Read and Carefully Review any Attorney Fee Agreement
Red Flag: Fees based on GROSS not NET settlement amount. This means you will be paying attorney fees before costs (expert witness, reports, copying, and much more) are deducted from your settlement.
Fees based on GROSS will always cost you more than fees on NET.Red Flag: Your attorney asks you for “up-front” money in exchange for a reduction in fees. This may mean the attorney is underfunded and does not have the economic resources to take on better financed opposing attorneys or law firms.
Red Flag: Your attorney wants payment based on an hourly rate. In a case that may require litigation, this usually means the attorney may not be confident in a favorable outcome and wants to make sure to get paid if the attorney loses.
Tip: Attorney fees are negotiable
