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Senior Advisor

I have a relative that trusted an insurance agent

To fully cover his buildings and the contents but he neglected to do so. Fire destoyed a big shed with all the contents. Thus he must seek litagation to recover his losses. The insurance firm claims no responsibility and the agent has moved on to different employment. losses well over $50k.

 

Thus you need to go over all details with your agent and then confirm that the policy states all the coverage.

 

Just a helpful hint, folks!

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5 Replies
Honored Advisor

Re: I have a relative that trusted an insurance agent

Sorry to hear it, but I am not surprised.  Mike's uncle lost his home in a fire, and only got paid for a third of it...really the agent's fault, but the company walked away with a smile on its face. 

 

See my comment below about the man with a briefcase....

 

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Veteran Advisor

Re: I have a relative that trusted an insurance agent

Yes, be sure to look over your policy carefully, to be sure you have the coverage you need.

 

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Veteran Contributor

Re: I have a relative that trusted an insurance agent

I have a good one for you all. In 2008 we had substantial rains in the spring. My wife and I lived in my grandparents old farm house on the main farm. One night she woke me up and said she thought someone had hit the house. We live 100 ft. From the road. I got up and looked around, didn't see anything, went back to bed. The next morning I found out what she heard in the night. Our stairs had pulled away from the walls and all of the new sheet rock we put up was cracked. Went down to the basement and one wall had completely collapsed in. Called our insurance company and they came out to look at it. Got call later and said they were sending out a person to look at the damage that was more or less a engineer. He deemed the house unlivable and suggested we move before the rest of the basement collapsed. Here I am, with a set of brand new twin babies and a house that we had worked hard to re-do and make our own " unlivable". The insurance company called a few days later and told us that they would not cover the house due to it was the earth moving outside of the house that caused the failure, not the house itself. So they washed there hands of it. The adjuster told me that if we would of had earthquake insurance they would of paid for it. I know I went the cheap route Because EVERYONE in NCIA has earthquake insurance. I guess??? We tried to fight it to no avail and had to build a new house on the same site. Didn't really have that in the budget. I once talked to an old timer here in our town and asked him if there was one thing he would of done different in life what would it have been. He said he only one thing he would of changed was that he would of never bought any kind of insurance but liability policies. Needless to say we have a different company now. And still no earthquake insurance.

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Honored Advisor

Re: I have a relative that trusted an insurance agent

Most people think they have coverage against all perils.  If you actually take time to read all the fine print, you will learn how wrong that impression can be. 

 

Flood and damage by earth movment are not generally covered.  I remember learning this when shrink-swell clay on a Triassic Basin was wreaking havoc on homes in central VA, many years ago. 

 

There is usually no coverage from damage due to civil unrest, too...so, if you see a mob coming, you are SOL.

 

Not unusual in farmowner's is a limit for environmental damage (maybe just for us NC hog farmers?), and houses have several sheets of explanation of things they do not cover - mold damage, for instance - attached to the policy. 

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Senior Advisor

Re: I have a relative that trusted an insurance agent

Yes, it's no fun reading insurance policies because one learns how much they DON"T cover.  But it's necessary.

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