Plans for the holiday season and especially for the big blowout bash of January 1st are, no doubt, well underway with arrangements having been made for the location, caterer, band, and invitations, but has any thought been given to the purchase of special event insurance? Probably not. Insurance is usually an afterthought if any thought is given to it at all. Special event insurance can be purchased for both private and corporate events.1 The following is a snapshot of special event insurance for private events just in case there is a planned January 1st festivity—it’s not too late to purchase special event insurance. Continue Reading
Are In-Laws “Relatives” for Coverage Purposes?
The holiday season is often a time to gather with family and friends. Sometimes, people consider their in-laws and even their ex-in-laws to be family and relatives worthy to be visited during the holidays, particularly if there are children involved. But does this analysis carry over for insurance coverage? Continue Reading
Court Denies Recovery of Public Adjuster Fees in Breach of Contract Action
In Kingshill Hospitality, Inc. v. American Economy Insurance Company,1 the policyholder’s hotel was damaged by a fire. Three days later the policyholder hired a public adjuster to assist in submitting its insurance claim. A dispute arose regarding the amount of loss and the policyholder filed suit for breach of contract. Continue Reading
Trial Court Sides with Insurers Over Cracked Concrete Foundation
In March of 2017, I wrote a blog post about the crumbling foundations in Connecticut due to a concrete company, J.J. Mottes & Company, using concrete that contained pyrrhotite, that cause the concrete to lose integrity and collapse. Many insurance companies have been denying these claims for various reasons. One insured, Lawrence and Karen Cockill, sought to have their claim against Nationwide covered by arguing that the structural integrity of the concrete was diminished due to a “chemical reaction.”1 Continue Reading
Insurance Lobbyist Describes His Personal Story of Insurance Company Bad Faith
Scott Johnson
Insurance lobbyist Scott Johnson is a bulldog advocate for the insurance industry. He usually is trying to make policyholders, their attorneys or anybody other than the insurance claims executives and adjusters look bad to support the insurance industry’s legislative efforts. I fell out of my chair when he described his own personal claim and why the insurance industry needs strong oversight and civil penalties to keep it in line. Continue Reading
NFIP’S Horseshoe Option
When a National Flood Insurance Program (“NFIP”) insured is not satisfied with the payment for flood-related losses, the NFIP insured is directed to three options:1
- The NFIP insured may file an appeal with the Federal Emergency Management Agency (“FEMA”) within 60 days of the NFIP insurer’s written denial or partial denial of the requested claim amount.2
- The NFIP insured can invoke the Appraisal Provision of her policy. NOTE: The NFIP insured may not file option one above, the appeal with FEMA, if the Appraisal Provision is invoked.
- The NFIP insured may file a lawsuit within one year of the date of the written denial of all or part of the NFIP insured’s claim. NOTE: The filing of a lawsuit precludes option one, the appeal, and option two, the appraisal process, as those are considered pre-litigation administrative remedies. Continue Reading
North Carolina Insurance Commissioner Requires More Thorough Investigation of Hidden Water Damage and Hurricane Florence Claims
The North Carolina Insurance Commissioner, Mike Causey, gets an A+ grade for his recent bulletin requiring greater investigation of otherwise hidden areas behind walls to ensure losses are being adjusted properly. This bulletin will certainly help victims of Hurricane Florence with hurricane claims. Continue Reading
Should Insurance Agents Get Sued for Selling Insurance Which Requires Arbitration in a Far Away Location and Deprives Their Customers of Consumer Protection Laws?
Why would any insurance agent sell a customer an insurance policy that allows the insurance company to low-ball, delay payment, and otherwise not pay, and then force the insurance customer to obtain justice through an arbitration in a far-away jurisdiction applying foreign law? That is exactly what many commercial policyholders are being sold in Texas and Florida. Insurance agents are supposed to sell insurance that protects policyholders, and these types of policies sold by the surplus lines insurance industry should be banned and not sold. The above image of Timbuktu is appropriate because that is where policyholders could be forced to arbitrate. Continue Reading
Can Drones Show Sufficient Evidence of Roof Damage for a Complete Investigation?
Drones and new technology can help show damage easier, far less costly, and much safer. But are drone investigations accurate? Will they miss damages otherwise owed with a full investigation to determine roof damage? Continue Reading
Move Out and Lose Coverage—Common Property Insurance Minefields Caused By Changes of Residency
Insurance agents, divorce attorneys, elder law attorneys, wills, trusts and estate attorneys, and real estate attorneys need to read this post. They also need to read “Where You Reside” – The “Where’s Waldo®?” Catastrophic Homeowners Policy ‘Exclusion’ That Could Bankrupt Your Insureds, by insurance coverage expert Bill Wilson. Wilson’s article shows how often coverage can be lost just by common changes of where people are living. Continue Reading
