Do we need homeowners insurance reform?

[Politically_Incorrect12]

I know a guy who had one of the eaves on his house break during a storm. The result seemed to cause water to run down the side of his house and ended up flooding his basement, along with some other water damage. His homeowners insurance seems to be telling him that the damage isn't covered because he doesn't have flood insurance. It seems odd that the reason for the flooding wasn't because he was in a flood zone and it is not like his house is submerged in water, it came from the eaves breaking. While not to the same magnitude, it kind of reminded me of the houses during Katrina where the Hurricane caused the flooding and insurance companies were arguing that they wouldn't pay because it was the flooding that caused most of the damage not the hurricane.

While I only have one side of the situation regarding the person mentioned above, maybe there is some sort of reform where if you are covered, EVERYTHING is covered. It will increase rates, but might prevent people from running into similar situations in the future.

P.S. I am glad that the title was able to fit homeowners insurance because initially I was just going to put H.O. insurance reform. I figured that might bring out the wrong ideas.

[deziloooooo]

May 6, 2011 18:29:03 GMT -5 Politically_Incorrect12 said:

I know a guy who had one of the eaves on his house break during a storm. The result seemed to cause water to run down the side of his house and ended up flooding his basement, along with some other water damage. His homeowners insurance seems to be telling him that the damage isn't covered because he doesn't have flood insurance. It seems odd that the reason for the flooding wasn't because he was in a flood zone and it is not like his house is submerged in water, it came from the eaves breaking. While not to the same magnitude, it kind of reminded me of the houses during Katrina where the Hurricane caused the flooding and insurance companies were arguing that they wouldn't pay because it was the flooding that caused most of the damage not the hurricane.

While I only have one side of the situation regarding the person mentioned above, maybe there is some sort of reform where if you are covered, EVERYTHING is covered. It will increase rates, but might prevent people from running into similar situations in the future.

P.S. I am glad that the title was able to fit homeowners insurance because initially I was just going to put H.O. insurance reform. I figured that might bring out the wrong ideas.

Hope fully he gets legal help here asnd it seems he should be covered, I have a friend who was in Galveston and at first Insurence company was saying that the homes flooded , most did not have flood insurence, not on flood plain, and the flooding came from a surge from the back bay, the levees held..but after a while , Insurence companies saw the light, possible with the threat of a stampede of 25,000 long horns through their HQ, what ever, they were covered.

[EVT1]

May 6, 2011 18:29:03 GMT -5 Politically_Incorrect12 said:

While I only have one side of the situation regarding the person mentioned above, maybe there is some sort of reform where if you are covered, EVERYTHING is covered. It will increase rates, but might prevent people from running into similar situations in the future.

It seems like a good idea but insurance companies sure love their legalese and numerous policy holes they employ to get out of paying rightful claims- just like the medical insurers do. I don't see them allowing that kind of reform to happen.

I think it stinks, because all people want to do is rest easy knowing they will be taken care of if something happens and they are willing to pay for it. It seems insurers go out of their way to make sure they can't.

[Mad Dawg Wiccan]

If I were him I would appeal it and take them to court if needed. What would they have said if it had been a burst water pipe?

[handyman2]

If I am correct and I think I am a burst water pipe is not covered in most insurance policy's. Flood insurance is only availible if you live in a designated flood plain. I believe there is a federal regulation covering this. There is a lot of legalese covering flood issues.

[handyman2]

This message has been deleted.

[❤ mollymouser ❤]

Actually, I think pretty much any home owner can buy flood insurance these days, I belive, through the NFIP. We're not in a flood zone, but we have flood insurance ... because it's basically "water damage insurance." (We have traditional homeowner's insurance, as well.) In addition, we also have "sewer backup" coverage, as well as earthquake insurance ... because those risks aren't covered under our homeowner's policy, either.

www.floodsmart.gov/floodsmart/

[marshabar1]

May 6, 2011 18:29:03 GMT -5 Politically_Incorrect12 said:

I know a guy who had one of the eaves on his house break during a storm. The result seemed to cause water to run down the side of his house and ended up flooding his basement, along with some other water damage. His homeowners insurance seems to be telling him that the damage isn't covered because he doesn't have flood insurance. It seems odd that the reason for the flooding wasn't because he was in a flood zone and it is not like his house is submerged in water, it came from the eaves breaking. While not to the same magnitude, it kind of reminded me of the houses during Katrina where the Hurricane caused the flooding and insurance companies were arguing that they wouldn't pay because it was the flooding that caused most of the damage not the hurricane.



While I only have one side of the situation regarding the person mentioned above, maybe there is some sort of reform where if you are covered, EVERYTHING is covered. It will increase rates, but might prevent people from running into similar situations in the future.

P.S. I am glad that the title was able to fit homeowners insurance because initially I was just going to put H.O. insurance reform. I figured that might bring out the wrong ideas.

He needs to contact his insurance commissioner and the attorney general of his state. The first line of defense with these insurance companies is a whole line of people whose job it is to say "no."

He needs to write a strong letter describing the situation as clearly as possible. If he can't write well he should find someone to help him. Send the letter certified to both government offices and every level of the insurance company he has dealt with so far.


He shouldn't waste his time talking to them. Report them.

[steff]

We've had 2 instances where we had issues with our home owner's insurance.

While the house was in closing, a storm rolled thru and damaged the roof. all but 1 house in the neighborhood had roof damage (hail damage). Our insurance hadn't started coverage yet, it kicked in 3 days AFTER the storm. The house was a bank owned foreclosure and their insurance company basically just said "no" because it was in closing. I wasn't able to ever get either one to fix the roof. Another bad hail storm rolled thru, I called on it... and my insurance fixed it.... I just kinda went 'whatever" after all the annoyance of trying to deal with the bank insurance company. But the roof was replaced completely.

Our 1st Fourth of July in the house, the back deck collapsed with people on it. At first the insurance company said it wasn't covered... but then the very next day, they changed it, issued a check, paid the medical bills for the injured. I didn't have to do much fighting, it was the adjuster who said something to get them to change their minds on covering it. We had a new deck put in within a week.

we also have sewer backup (septic tank back up/damage/problems) insurance coverage & additional flood insurance as a just in case.

[❤ mollymouser ❤]

May 6, 2011 20:11:33 GMT -5 steff said:

we also have sewer backup (septic tank back up/damage/problems) insurance coverage & additional flood insurance as a just in case.

[marshabar1]

It is also worthwhile to get a personal liability rider on your insurance policy. A million dollar policy rider costs very little. With injuries you never know.