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from our blog
Seatback Failures
Front occupant seatbacks play a vital safety role in rear-end crashes, similar to the purpose of airbags and seatbelts in frontal impacts. In a rear impact, a front seat should be designed to absorb energy and contain the occupant in the front seating space. Weak, defective front seats can fail, collapse and cause front occupants […]
Insurance Company Sues Local Government Over Global Warming
Global warming has been on everyone’s minds for over a decade now and is starting to become a serious issue. In one particularly strange turn of events, global warming is the centerpiece in a series of lawsuits related to weather damages, and that trend is expected to continue.
In Chicago, the recent series of rain storms has caused massive flooding. The antiquated sewer and drainage systems have caused streets to become buried under water, and homes to be abandoned. Several blocks are accessible only by kayak or boat, and sinkholes have appeared, swallowing cars whole.
Normally in situations like this, individuals will submit claims against their house insurance policies, and those insurance companies are looking for anyway possible to hold onto their billions of dollars. Oddly enough, the insurance carriers are not acting against the individual insurance consumers as normal, but rather against the government itself.
The lawsuit in question, filed by Farmers Insurance Co against several Chicago municipal government entities, alleges that the government knowingly ignored global warming signs and warnings, which led to the flooding and damage.
Central to Farmers’ case is a set of plans published by water management authorities in 2011, stating that the drainage systems were no longer up to code.
It is unknown whether this lawsuit will be taken seriously or not, or even if the lawsuit is anything more than a desperate attempt to get out of paying on insurance claims. But, it is the first high-profile case by an insurance company against a government entity related to global warming. As the world’s weather continues to become more erratic, however, it is not unreasonable to expect this trend to continue.
Source: http://www.washingtonpost.com/news/morning-mix/wp/2014/05/19/climate-change-get-ready-or-get-sued/
Disparity in Homeowner Insurance Premiums After First Claim
A homeowner purchases homeowner insurance hoping he never has to use it, but in case he does, he knows the insurance will help compensate him for the financial damage to his home. When damage does occur, whether it be minor such as a window broken by a falling tree branch, or major such as flooding due to a broken water pipe, the owner then files a claim with his insurance company.
Unfortunately for homeowners across America, when they file their first claim with their insurance company, they will see a hike in their insurance premium.
A recent study commissioned by InsuranceQuotes.com, found that the average premium rate hike for a family filing a homeowner’s claim is about nine percent, which averages out to $150 a year. In some states, however, that one claim could cause your premium to rise by as much as 21 percent.
According to a senior insurance analyst with Insurance Quotes.com, it’s better to pay for the repair yourself than filing a claim with your home insurance company. And it turns out where you live also makes a big difference in how much your premium will rise after filing a claim, as well.
The five states which had the highest premium increases after filing one claim were Minnesota, Connecticut, Maryland, California and Oregon. The five states with the lowest premium increase were Texas, New York, Florida, Vermont and Massachusetts.
The variations in premium increases were due to variations in state law and also the occurrence of natural disasters.
Robert Hunter, the director of insurance at the Consumer Federation of America, said that it is inappropriate to get “dinged” on one claim.
The executive director of United Policyholders, a non-profit group based in San Francisco, Amy Bach said that she also agrees that it is “outrageous that you use your insurance once and have your premium jacked up.”
Consumer advocates suggest homeowners take the largest deductible they can afford and pay for repairs out of pocket whenever possible to keep from having their homeowner insurance premium rate increased.
In Texas, the state with a 0 percent premium increase after the filing of one claim, according to David Nardecchia, with the Texas Department of Insurance, state insurance law prohibits insurance companies from increasing premiums on homeowners for filing first-time claims.
Homeowner’s Insurance Appraisal Process
The term “appraisal” as defined in a homeowner’s insurance policy has an entirely different meaning than the one more commonly used in every day language. Normally when we hear the term appraisal, we think of a real estate appraisal that is used to determine the value of a home. However, in a homeowner’s insurance policy, the appraisal process is more similar to a three-member-panel arbitration proceeding which is used to determine the value of a personal property loss or home repair dispute that results from a covered homeowner’s insurance loss.
Similar to arbitration, the appraisal process is an alternative dispute resolution intended to resolve disputes without the need for litigation. It is supposed to be less expensive to the insured and less time consuming. The majority of homeowner’s insurance policies enable appraisal when the insurance company and policy holder are unable to agree concerning the value of loss to a covered property. Appraisal is not available when there is a coverage dispute. In an appraisal, each party generally names their own appraiser to value the loss and attempt to reach an agreement. If the parties’ appraisers cannot agree on an amount, then it is up to a third appraiser, usually called an umpire, to resolve the dispute. Each party is responsible for the cost of their own appraiser and equally split the cost for the umpire. Attorneys’ fees and costs usually are not recoverable through the appraisal process.
Unfortunately in recent years, insurance companies have been writing complex agreements detailing the scope and procedure for the appraisal. These complex, sophisticated appraisal agreements have led to an increase in disputes between the insurance consumer and their insurance companies. Of course, the insurance consumer has no input whatsoever into the terms contained within these appraisal agreements because the insurance company simply includes the language in the insurance policy. Because insurance contracts are generally considered contracts of adhesion, i.e., the insurer draws up the contract and the insured has little or no ability to make material changes to it, Arizona consumers best defense to unfair, unforeseen terms is Arizona’s “reasonable expectation” doctrine.
Insurance companies are also becoming more aggressive in insisting that the insurance consumer sign an appraisal agreement even though the insurance consumer may not understand that the agreement does not always cover the entire scope of the loss. The insured homeowner needs to make sure the agreement he or she signs completely encompasses the scope of the insurance loss. If it does not, the insurance company will argue that the insurance consumer should not be allowed to assert a claim for those additional damages not included in the agreement.
Arizona Insurance Issues Plague Scottsdale and Phoenix Metro Homeowners
Do you really know what loss or damage your Scottsdale Arizona insurance homeowner policy will cover?
Will your insurance policy compensate you sufficiently to replace damaged personal property and belongings in your Cave Creek or Carefree Arizona home?
Will your Phoenix Arizona insurance policy cover all of the structural damage to your home, regardless of causation?
If you work from home, will your home office and expensive computer equipment upon which your livelihood depends be covered by your Fountain Hills Arizona insurance policy?
When you enter into an insurance policy agreement with an insurance company, you agree to pay insurance premiums and the homeowner insurance company agrees to provide protection should a covered event occur. You would expect your insurance policy to cover home damage from fire, mold, roof damage, foundation cracks, water damage, hail damage, and theft. And when someone is injured on your property, you would expect your homeowners’ insurance company to promptly pay any legitimate insurance claim, to protect you for a claim in excess of your insurance policy benefits, and to defend you in any resulting lawsuit over a disputed insurance claim.
Some of the Most Common Reason for Denial of Homeowners Insurance Claims
The primary reason why homeowner insurance claims are denied is because the insurance policy didn’t cover the type of damage or loss that occurred. This can mean that the insurance policyholder either didn’t really understand the insurance policy terms, or was led to believe the insurance policy contained provisions for compensation over specific losses, damages, and repairs when in fact it did not.
Typically, an Arizona insurance policy for the homeowner will provide coverage for:
● Home property damage claims
● Homeowner theft claims
● Liability claims
● Medical payment benefit claims
Under each of these insurance policy provisions, you should read your homeowner insurance declaration, insurance policy, and insurance policy endorsements very carefully to understand the full scope of the insurance coverage provided. The problem is that you probably won’t learn much from reading the policy unless you are an insurance claims attorney. The comprehension level required to understand most insurance policies is slightly above that needed to understand Einstein’s theory of relativity. Insurance companies do this deliberately so that they can try to interpret the language to their advantage.
Practical Tips for Pursuing a Homeowners Insurance Claim
Insurance can be boring and the process of getting your homeowners insurance claim fairly paid tedious. To make matters worse, you usually have to steer through a complicated maze of endless claims forms.
The first thing you should know is our courts have generally held that where those incomprehensible insurance policies have unclear language, the language will be construed against the insurance company and in favor the insurance consumer. So, if you are in a dispute with the insurance company, do not simply take the insurance company’s word for the meaning of certain language or phrases in your insurance policy.
Second, Arizona insurance law has adopted the “reasonable expectation” doctrine. Although this can be a complicated legal theory with many nuances, it generally means that you get the coverage you expected, so long as your expectation was reasonable under the circumstances. This insurance coverage may exist even if the insurance company attempts to exclude it through some fine print in the insurance policy that is to the contrary.
Third, most courts have held that exclusions in insurance policies must be phrased in plain, clear, and conspicuous language. Most insurance claim denials are based upon exclusions – language usually on the last pages of your policy that attempts to take away the coverage that appears on the first pages of your policy. Many insurance consumers are not aware of these exclusions and many exclusion clauses are difficult to understand. Because of this, most courts have created legal rules to aid the insurance policyholders.
Finally, if the insurance company denies your claim, the insurance consumer should demand a written explanation as to the basis for the denial. Do not settle for a simple, verbal denial from the insurance claim adjuster. Once you receive the insurance claim denial in writing with the basis for the denial, you should read your insurance policy again because you may not agree with the insurance company’s interpretation of the insurance policy language. In short, make sure the denial of your insurance claim is legitimate.
When Your Scottsdale Arizona Insurance Claim Is Wrongfully Denied
Beware! Insurance companies acting in bad faith may delay homeowner claims processing, underpay on claims, treat you and your family unfairly, offer unreasonably low settlements, and wrongfully deny Scottsdale and Phoenix Arizona insurance claims altogether.
If you suspect any of the following acts or omissions have occurred in the denial of your homeowner’s claim, then your Scottsdale and Phoenix Arizona insurance company may have violated the law:
● While conducting its investigation, your insurer intimidates or harasses you and your family, or unreasonably disturbs your neighbors, friends, clients or co-workers.
● Your insurer unnecessarily delays its investigation and neglects evaluating your claim.
● Your insurer conducts its investigation, but then offers you an unreasonably low settlement figure, something far below the policy limits; or attempts to bully you into accepting a low-ball settlement just to put an end to the conflict.
● Your insurer denies your claim for fire damage or theft by unfairly accusing you of insurance fraud, false claims, or even arson.
● Your insurer denies all or part of your claim without ever clearly explaining the reason why it was rejected.
You Don’t Have to Fight a Bad Faith Insurer on Your Own!
Get help from Shane L. Harward – he’s the Scottsdale attorney who has been challenging insurance companies that violate insurance policyholders’ rights since 1995. When you call 480.874.2918, you’ll get a FREE initial telephone consultation about your homeowner insurance claim to see if we might assist you. Shane L. Harward will aggressively challenge any bad faith insurer’s unscrupulous tactics so you get the full compensation you deserve.
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9735 E. Shea Blvd.
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Scottsdale, Arizona 85259
Telephone 480-874-2918
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The Arizona personal injury, accident, and insurance bad faith dispute lawyers at the Law Offices of Shane L. Harward PLC represent insurance, personal injury and accident victims throughout the state of Arizona (AZ) including, but not limited to, Phoenix, Scottsdale, Mesa, Tempe, Chandler, Glendale, Gilbert, Sun West, Sun City, Tucson, Flagstaff, Kingman, Bullhead City, Yuma, Lake Havasu, Fountain Hills, Anthem, Ahwatukee, Carefree, Cave Creek, Gold Canyon, Bisbee, Sierra Vista, Cochise, Paradise Valley, East Valley, Maricopa, Pima, Pinal, Gila, White Mountain, Heber, Payson, Prescott, Forest Lakes, Apache Junction, Avondale, Queen Creek, Benson, Black Canyon City, New River, Buckeye, Casa Grande, Coolidge, Cottonwood, Douglas, Florence, Gila Bend, Goodyear, Greer, Glendale, Lakeside, Guadalupe, Holbrook, Huachuca City, Oro Valley, Overgaard, Avra Valley, Parker, Peoria, Pinetop, Pine, Prescott Valley, Quartzite, Strawberry, Safford, Show Low, Sun City West, Sun Lakes, Superior, Surprise, Snowflake, Tombstone, Wickenburg, Winslow, Wilcox, Williams, Young, Youngtown, and surrounding areas.