Insurance Dispute Lawyer Blog

What You Need to Know About Homeowner’s Exceptions (Deterioration)

Published on: November 24, 2008 | By Berniard Law Firm

Home deterioration can happen anywhere as a result of the natural climate and conditions that exist in the Gulf Coast. Whether it is the ceiling caving in or holes emerging in the floor, various different calamities can develop in your home that require action and repair. Under Texas law it is very important to understand exactly what the law says about what your Homeowners Insurance will and will not cover in the event things in your home begin to fall apart.

Under Homeowners Insurance Form A and B in Texas, deterioration that comes from within the home’s condition itself is not covered. Specifically, Exclusion 1(f)(1) excludes losses caused by “wear and tear, deterioration or loss caused by any quality in property that causes it to damage or destroy itself.” This type of loss specifically relates to a loss brought about entirely by internal decomposition or some quality of the property that brings about damage independently.

What this means to you is simple: allowing any condition in your home to go unrepaired and untreated may lead to even more significant damage to your home than what existed before. Getting a jump on a water leak or damaged foundation may be the difference between having a claim and having the insurance claim denied under this Exclusion.

Understanding Texas Home Insurance Plans (Form B)

Published on: November 23, 2008 | By Berniard Law Firm

Homeowner’s Insurance is a necessity for many Texas residents worried about the heavy winds that can come through the area and damage homes. Wind damage is a very specific claim under Homeowner’s Insurance that can be easily recorded and claimed in many cases. However, with Homeowner’s Form B insurance in Texas, not every claim is covered outside of a very specific list.

While Homeowners Insurance Form B is the most frequently sold Homeowners policy in Texas, the fact it provides coverage on an “all-risk” basis does not mean it covers everything. In fact, Form B Homeowners Insurance in Texas only covers the following:
fire and lightning, sudden and accidental damage from smoke, windstorm, hurricane and hail, explosion, aircrafts and vehicles, vandalism and malicious mischief, riot and civil commotion, collapse of building or any part of the building, accidental discharge, leakage or overflow of water or steam from within a plumbing, heating or air-conditioning system or household appliance, falling objects, freezing of household appliances and theft.
Very absent from this list is, of course, flood protection.

Homeowners Insurance is essential for the peace of mind Texas residents are looking for in the midst of adverse weather. Flood protection, though, is an additional insurance necessary should water cause damage without being the direct result of a home collapse or wind destruction.

Understanding Texas Home Insurance Plans (Form A)

Published on: November 21, 2008 | By Berniard Law Firm

When getting Homeowners Insurance in the state of Texas, it is important to understand just what is, and is not, covered by these policies. While agents might be eager to assure you that any accident or damage can be quickly claimed under Homeowners Insurance policies, citizens in Texas found themselves out of luck in the wake of Hurricane Gustav. Instead of hoping that your protection is all you need it to, get informed about your policy.

Under Texas Law, there are two very specific types of Homeowners Insurance – Form A and Form B. With these types of policies, the exclusions to coverage are what is important to point out.
Under Form A Homeowners Insurance, the following incidences are covered:
fire and lightning, sudden and accidental damage from smoke, windstorm, hurricane and hail, explosion, aircraft and vehicles, vandalism and malicious mischief, riot and civil commotion, and theft. Form A does not, however, cover losses caused by a “flood,” surface water or the overflow of streams or lakes. This means that while your homeowner’s insurance would cover a plane crashing into your home, it will not cover any damages the Colorado River could cause if it overflowed.

Homeowner’s Form A insurance is a great policy to have for Texas residents hoping to protect their home from a Christmas fire or the torrents of hurricane wind. However, Form A, as noted, is not enough coverage to protect your home in the event of the very types of flooding that Texas saw during Hurricane Gustav.

How to Save Money on your Home Insurance Deductible

Published on: November 20, 2008 | By Berniard Law Firm

Saving money when buying home insurance is often essential for Louisiana residents looking for the best coverage for the most reasonable rate. The Gulf Coast’s recent struggle with hurricanes has made it even more evident just how important sound, proper insurance coverage is for resident’s homes. Hurricane Katrina’s damage was unfathomable to many and Hurricanes Ike and Gustav were even able to catch some Louisiana residents offguard. Coverage for storm damage is essential and there are several things you can do to save on your home’s monthly insurance payment.

Raising your deductible on your home’s insurance coverage is often a surefire way to lower monthly dues. Using one insurance provider for all of the various coverage aspects you are looking to get for your house is also a way to get appreciable savings. An exhaustive search of all of the various resources for insurance is an excellent way to make sure your price quote is the best available. Searching online and making phone calls to agents in your area could save you hundreds of dollars monthly. Protection systems like flood doors and alarms can also raise your property value and lower your premiums.

Protecting Yourself From Inadequate Insurance Coverage

Published on: November 18, 2008 | By Berniard Law Firm

When buying insurance, it is often hard for homeowners to know if they are buying too much or too little. When asking an agent, people expect and appreciate candor and honesty when it comes to know how much insurance is necessary to protect their home. This trust that is placed into an agent’s skill and honesty is one that must be respected by the agent but also inspected and checked by the client.

When getting an insurance plan, requesting a second opinion from another agent or insurance company is a safe way to not only guarantee that you are getting the best rate but also the coverage you need. It will also confirm or deny the claims of another agent regarding what best suits your needs. After Katrina and many other hurricanes and tropical storms, lawsuits come to the public’s attention where an agent assured their client that hurricane damage would be covered under the homeowner’s insurance in place. This, however, is often not the case and leaves the homeowner out to dry.

In the Louisiana case of Schwartz v. Chubb & Sons Inc., the courts dealt with a similar issue of when the time for filing suit against an insurance agent who commits such misdirection expires. The courts in this case held that many current laws may be extended when an agent’s misinformation regarding coverage is damaging to the home owner.

Whether in the process of purchasing insurance or simply checking the plan in place, it is important to not only document what the agent states regarding coverage but also read the language yourself. A homeowner would much rather be properly protected before something happens to their home rather than have to go to court to get the financial compensation they require.

What Your Insurance Agent Owes YOU

Published on: November 17, 2008 | By Berniard Law Firm

The law of Louisiana is very clear about its desire to protect the people from insurance companies and agents with bad intentions. All insurance agencies, whether Allstate, State Farm, or others, are governed by the law to be honest and clear about their policies. While the state would like it so that there was nothing to protect home owners from, there are certain laws and safeguards so that wrong can be undone.

Under Louisiana law, there is a specific fiduciary duty owed to homeowners by their insurance agent. What this means is that the agent is expected and required, by law, to work honestly and openly with his or her clients. If an insurance agent breaches this liability, the client may hold them liable and sue in court. Liability will be held if the client can prove an agreement to purchase insurance, failure of the agent to reasonably use diligence and that the agents actions led the client to believe he or she was properly insured. Thus, if your insurance agent led you to believe you had coverage that they then deny you on a claim, a lawsuit is possible.

While every case is different and the law can be complicated, keeping complete records of your conversations and exchanges with your insurance agent can help should the worst happen and your claim is rejected. Being careful and meticulous with your insurance can help keep a mistake from occurring or help you win litigation down the road.

Car Insurance For The Worst-Case Scenario

Published on: November 16, 2008 | By Berniard Law Firm

Texas drivers often have to worry about getting into an accident with uninsured drivers and all of the financial difficulties that come with the repairs and any injuries that result. Those with Uninsured/Underinsured Motorist Coverage purchase these policies in order to be protected from such possible problems. These policies (UM/UIM) work to insure the victim of a motor vehicle accident that if the other driver was not insured or insured adequately, they will receive up to the amount of damages they would have been able to collect from the person had they been insured.

With UM/UIM coverage, the basic requirement is that the injuries and damages arise from a motor vehicle accident. The state has held that incidences like drive-by shootings or contact with city property do not qualify as compared to simple fender-benders or collisions. However, what is included through UM/UIM coverage is hit and run collisions where the vehicle’s operator or owner cannot be identified. This specific inclusion of unknown perpetrators nets for policy owners a halo of protection that involves almost every vehicle on the road.

Whether driving in Houston or Riverside, Texas, auto insurance and coverage is crucial to guarantee that, when an accident occurs, your vehicle can be fixed and any injuries can be paid for. In the event that the person whose car hits you is either underinsured, not insured at all or unknown, UM/UIM insurance works to protect drivers.

Hurricane Katrina Fraud Can Happen Again

Published on: November 15, 2008 | By Berniard Law Firm

In November of 2007, the Louisiana State Attorney General levied a suit against insurance providers in the Gulf Coast related to Hurricane Katrina business practices. The charges, including antitrust, collusion and price fixing violations, dealt with a system of claim denials that looked to take advantage of the confusion natural disasters create. What’s more, such a suit proves that while the government is able to inspect a series of complaints and practices, each individual needs help to make sure they do not get lost in the masses.

The lawsuit, levied against six major insurance companies, including State Farm and All State, struck at the big business policies of intentionally going after those policy holders who stood up and demanded more when their claim was given an inadequate financial value. The lawsuit stated the insurance providers coerced their policyholders into settling their claims of damages for less than their value by editing engineering reports, by delaying payment and by forcing policyholders to litigate claims to receive full value.

Happening as recently as 2007, fraud on the part of insurance companies should be a real concern for any policy holder looking to make a claim on damage. While not every insurance provider is dishonest or difficult in the event of a claim, protecting yourself in the event that one does is a solid strategy to avoid problems in the future. Always make sure to have your claim and the insurance company’s offer inspected by a contractor to guarantee a settlement will give you the financial settlement you need and deserve.

How Insurance Companies Could Defraud You

Published on: November 14, 2008 | By Berniard Law Firm

Insurance fraud is something everyone is aware of and leads to significantly higher premiums for anyone looking for protection. What the insurance companies do not talk about, though, is the very insurance fraud that goes on within the industry itself. While companies may drag their feet or act in bad faith in delaying payments or sending inspectors to the homes of policy owners, there are some very serious actions that have gone on that require policy holders to remain vigilant in their claims.

In a case relating to the 1994 Northridge earthquake in California, State Farm agents, according to the testimony of one of the company’s former employees, tried to avoid paying insurance claims to victims through forged signatures and altering documents to make it appear earthquake damage had been declined by policyholders. An investigation by a tv station in San Francisco in 1997 showed the company had also gone so far as to delay inspections and lower the value of claims of those individuals who took action against the company because of these delays. These acts of explicit fraud and malice by State Farm serve as an example of how policy holders must remain ever vigilant when it comes to their policies and insurance protection especially as they can happen anywhere.

Hitting closer to home, on May 2 of 2003, a Metairie insurance agent was shut down for forgery and misappropriation of insurance premiums, the third in four days. On June 27, 2005, another agent from Lafayette pled guilty to theft after pocketing premiums on insurance payments rather than sending them to the companies. These instances prove how important it is to make sure with the company you are buying insurance from that payments are received and coverage is verified.

These aforementioned examples of fraud are neither the exception nor the rule, but, instead, demonstrate why insurance policy holders in the Gulf Shore and elsewhere must remain ever vigilant on their claims of damages with insurance companies. Keep close records and copies of all of your insurance information and all documentation and pictures you have of the damage you are making a claim to your insurance company for.

How Texas’ Personal Injury Protection Protects You

Published on: November 10, 2008 | By Berniard Law Firm

Personal Injury Protection (PIP) automobile coverage in the state of Texas is a common insurance agreement in which the carrier will pay benefits to the policy holder because of “bodily injury resulting from a motor vehicle accident and sustained by a covered person.” Thus, helping someone financially who has been in a car accident that causes someone to be hurt is the general idea behind PIP benefits. Accidents have been strictly defined to be only those incidences directly relating to injuries coming as a result of the use of a motor vehicle. Those covered include the policy holder and any family member who was in or was struck by the vehicle.

The benefits entitled to an injured individual include reasonable expenses incurred for necessary medical and funeral services. PIP also includes the replacement of 80% of income lost during the period of disability up to the policy limits. PIP can also include, for those unemployed, expenses incurred for obtaining services that the covered person would have performed had they not been injured.

As a whole, PIP benefits relating to car accidents are pretty clear and supportive of policy holders. There are very few exclusions to PIP coverage except to remove from protection those accidents that are not related to driving a motor vehicle, i.e. breaking your ankle getting out of the car.