The Parable of Hurricane Ike Insurance Claims
My good buddy, Tom Grail, told me the parable of Hurricane Ike Insurance Claims. To appreciate this, one must first understand that the total loss structures in Galveston and Bolivar receive uniform estimates of wind damage from the Texas Windstorm Insurance Association (TWIA). The amount of damage caused by wind for nearly every structure is approximately 11%. The reports are virtually identical for every total loss structure, despite differences in the age of the structure and quality of construction.
The parable is a story of two men, Larry and Moe, who were on the peninsula when Ike hit. Larry was struck by a flying 2X4 launched by the wind, then, when the surge came, he grasped a floating timber and made it to safety. He was treated for his injuries, estimated at 11% of his being.
Moe was not so lucky. He was killed instantly by a flying TV set. The storm surge subsequently swept his body away.
The medical examiner compared Moe's corpse to Larry. After taking several months to consider the situation, the examiner declared that Moe was only 11% killed by wind, because that's what happened to Larry. He opined that 89% of Moe's death must have been due to flooding.
The TWIA policyholders from Bolivar Peninsula are furious with their claims treatment. It is my understanding that many may protest in Austin on March 13. More power to them.
Do the customers get to pay 11 percent for their insurance? When the wind pool makes a claim on their reinsurance policy will they accept being told they will receive 11 percent from the reinsurer simply because it is the number the reinsurer feels is "right"?
While I can understand the problems associated with servicing policies after water damage has entered into the picture it does not excuse the agency from attempting to ferret out the damage. Infact, it is the DUTY of the insurance company to service its policy within the guidelines of established procedure. Anything else amounts to a post disaster change in the terms of the policy in my consumer centric non-lawyer based opinion.
I hope these people seek good legal counsel as they are infact being screwed pretty badly. What is needed is a proper claims adjustment which a good lawyer can provide. I can speak up for the services of this Merlin Group as I am a Katrina hurricane survivor who witnessed how the Merlin Group prepared their cases for settlement and for Court if settlement was not possible.
Here is what I observed not directly but from the perch of an interested consumer. One major law firm with a very good reputation had files thin as their folders. They relied upon their ability to bully the industry inot payment. Anouther, which was of course the Merlin Group, had rather thick files. Every case was examined by an independant adjuster and when needed an engineer. Not just the select few the lawyer felt would be a good test cases for Court. This is important because when you face the insurance company THEY have to be able to justify the payment and THEY may not be willing to properly adjust the claim(which is their legal duty).
Engineers were hired to challenge the data itself which the industry used to generate wind damage determinations by both law firms I am comparing. I was shocked to learn how one very respected law firm really didn't service their clients cases. Ultimately more than one of their customers defected to the Merlin Group. Chip will not post about these things but I feel I can because they are true. I think it is important for the consumer to know what their lawyer will do for them in terms of actual case prep.
The Merlin Group is not the only law firm which can prepare a case for the consumer. But I was shocked to learn how one very famous firm basicly didn't do anything but try to bully the insurance company into payment when infact with a little work their clients could have been paid on the merits of their case. Chips clients got paid well and their cases were well prepared.
I hope this helps consumers understand what they need and if I am wrong on any of this please don't post this comment. I want each person impacted by the hurricane to sleep better at night and to get paid what their policy intended them to get paid. When you get a lawyer who is willing to work the case then its time to put your mind on other things such as your community, church and family. The industry knows how hard it is to do this but I can assure you it is the path to getting the best settlement and having the less mental anguish. If you know of someone who is struggling mentally with the hurricane make sure they get the help of a medical doctor who can evaluate for post tramatic stress, depression etc. Sadly insurance companies use these types of problems as a green light to abuse the person even more hoping they will give up. This is the most you can do and the rest you should put in the hands of God.
Anouther important thing is that when you have been identified for mistreatment by your insurance company an attorney is really the only person who can help you. Once you have been put on the "screwed" tract for payment you will not get off that tract until you get a lawyer.
The industry especially likes to abuse older people and I strongly encourage them to go ahead and turn their case over to a lawyer so you can have a buffer between you and the abusive insurance company. I can say this because it is exactly what we on the Mississippi Gulf Coast experienced after Katrina. Elder abuse by the industry was the most sickening aspect of Katrina. It is much better to fight the insurance company if you are old because it will stop the industry from engaging in this the most abusive of practices.
Steve,
There are a number of very qualified Mississippi Gulf Coast attorneys that are experienced and fantastic in this line of work outside of my law firm. We even advertised that those along the Gulf Coast should hire an attorney--even if outside my lawfirm.
While I appreciate the very high compliment you paid my firm, the truth is that the Mississippi Gulf Coast is blessed with a number of outstanding insurance litigators that represent policyholders. I would be humbled to be counted among them. One of my proudest professional moments was obtaining a license to practice in this state with them.
My most significant educational experience growing up was at St. Stanislaus in Bay St. Louis. My family has lifelong friends along the Coast, and it has been gratifying to practice law helping them.
Steve, you brought up one thought that has been with me since I realized my mother's plight (lack of insurance reimbursement)after Hurricane Ike. 'Elder abuse' is correct. Her community of Crystal Beach on Boliver Penninsula was a beautiful retirement community! No assisted living or over-55 planned community could better the life she had made for herself there. And it wasn't just the walks on the beach. Now her friends are scattered.
But in all this, the fate of a catastrophic storm isn't the worst of it. My mom's generation isn't especially prone to running to an attorney for assistance. And they know full well they probably wouldn't live to see the results of that fight if they did. That makes me so angry. There are so many public warnings about scams after the storm. TWIA has run the biggest of them all.
Brenda,
Most of our cases following Katrina were settled 6 to 18 months after a lawsuit---if a lawsuit was needed. Many were settled without a lawsuit but at the time of settling many that were in the "vanguard" of cases.
People should not be afraid because it does not take that long to finish most cases and it is not "running" to an attorney. It is standing-up for for your legal rights and contractual promises. Insurers want to make it sound like it is painful to deal with an attorney, and it is not at all.
We even had a party for our clients in Mississippi.
Clearly, the Merlin Group is doing great things for the us policyholders and I want to commend them for their never ended campaign to protect consumer rights.
To be fair to the consumer, there is another quality resource available to the policyholder. Let us not forget the value of a licensed Public Insurance Adjuster and their possible role in the settlement of an insurance claim. Below is an exert from the National Association of Public Insurance Adjusters (NAPIA)illustrating their value. Also, the maximum compensation a Public Insurance Adjuster can receive by law is 10% of the claim settlement paid to the policyholder. And, most Public Insurance Adjusters work on a "No Recovery, No Fee" basis which means that if they don't get you any money, you don't owe them anything. It's a "no-lose" situation.
What is a Public Adjuster?
Public Adjusters are professionals who are employed exclusively by a policyholder who has sustained an insured loss. They handle every detail of the claim, working closely with the insured to provide the most equitable and prompt settlement possible. A Public Adjuster inspects the loss site immediately, analyzes the damages, assembles claim support data, reviews the insured's coverage, determines current replacement costs and exclusively serves the client, not the insurance company.
What kinds of claims can a Public Adjuster help with?
A sampling of the types of residential or business losses a Public Adjuster can assist with:
* Flood
* Collapse
* Fire
* Explosion
* Hurricane and wind damage
* Riot or civil commotion
* Smoke damage
* Vandalism or theft
Often, physical damage loss can trigger numerous additional losses for businesses. Among the numerous business insurance forms a Public Adjuster will assist with are:
* Business Income
* Builders' Risk
* Mechanical and Electrical Breakdown
* Extra Expense and Expediting Expense
* Leasehold Interest
Why does a property owner need a Public Adjuster?
A Public Adjuster works for the property owner, not the insurance company. The highly stressful period following a loss is a difficult time for individuals and businesses. A Public Adjuster can take those major headaches away and let you get back to your home or business. A typical fire or flood policy contains hundreds of provisions and stipulations, constantly changing forms and endorsements, and many complex details such as inventory appraisals and real estate evaluations that are required in case of a loss. Most policyholders do not know that the burden of proof is theirs. Public Adjusters know the insurance business and are familiar with all procedures so they can work quickly to expedite payments.