• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

something sounding shady in claim/payout

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

sewash

Junior Member
What is the name of your state?What is the name of your state? Washington

Several years back my girlfriend and I went into a home purchase deal with her grandfather. It was a home he bought outright for cash and we paid him back monthly as though he were the bank.

Fast forward 4 years, we signed the house over in full to her grandfather in June of 2004 as it was just to much of a money pit(it was an 83 manufactured home) for us to continue keeping it in decent shape.

The homeowners insurance remained in my girlfriends name until october as it was paid THROUGH october of 2004 already. Even though we no longer held any claim on the home, the insurance was still her coverage until then.

In September of 2004 her grandfather filed 2 claims to the insurance company - unbeknownst to either of us - for a fire he had accidently set in the back, and for some water damage that had occured to the subflooring as a result of a burst pipe previously (unrelated incident). The total of the two claims was approximately 11, 000 dollars, both of which were paid out - TO HIM, in his name, without us ever knowing. we have only just now learned of all this because we are once again purchasing a house (a brand new one this time, we learned our lesson) and when she went to get the homeowners insurance she was told that due to some previously filed claims her premiums would likely be substantiall higher than normal.

Once we connected all the dots and learned what happened, I am just floored. we have been attempting to contact the supervisor who would have authorized the check be made out to someone other than the policy holder or the company making the repairs (it has been verified both checks were made out to her grandfather) but she will not return calls and never actually answers the phone. anyone else is giving us nothing but a run around.

how does this happen? how is it even possible for it to have been paid out to him without our knowledge when it was her policy and it was very clearly not her who filed the claim? Most specifically because the impact is on her rating with the homeowners insurance people in general, when she never even filed a claim with them.

We dont take issues to the claims in and of themselves beyond our lack of knowledge in their occurence, Im sure the repairs needed done, and I am sure he paid people to do them, as shortly there after he sold the house himself..but the procedure of what happened here and how it is as a result affecting her standings does not sound right.


thank you for any feedback
 


claimlaw

Member
I'd like to kick your hillbilly asses!

You have way too much farking audacity.

Let me see... the old man does you a favor by selling his loser family members a property on land contract because they'll probably be living in his guest bedroom otherwise. You suck the best out of it and throw it back in his lap with a broken pipe and water damage. I'm guessing he was a gentleman and didn't sue your sorry ass as he should have for the damages/repairs. As a lien holder and additional insured he makes a rightful claim under a policy that names him as an additional insured since it is his property and his risk. You have already Quit Claim it back to him and then get huffy because he didn't discuss his finances with you?

You suck.

Claimlaw
 

sewash

Junior Member
Actually no, had it boiled down to the way you describe it I would agree with you.

She was signed as the legal owner of the house until June04 (which was not on his land, the land had nothing to do with him, it was a lot rented seperate from him, by us, until he took over ownership). We had already paid and had the burst pipe itself fixed (hence part of why i reference it being a money pit) , we could have addressed the subflooring ourselves (which was the nature of the first claim) and had the repair work done, sold the house, and repay him the balance owing on the debt remaining of the house, but neither of them wanted to go down that road each for their own reasons: Us because it was more work and investment than we felt the house's overall innate value justified, he because hes been in real estate his entire life and they both wanted to sign him back as owner so he could choose how he wanted to handle the sale of it, so thats what was done.

As it happens the situation should be remedied as we found out this morning that the insurance company involved did in fact have a copy of the letter on file stating the dates we were removed from interest in the house, and they are faxing the appropriate forms to the other company now involved so it should not impact her current standings due to claims not filed by her

The crux of my question was how it would be filed on her insurance policy and paid out without her knowledge or ever being informed by even the company that it had occured, if the remainder of the situation offended your sensibilities I apologize, it wasnt an issue of his finances, it was an issue of claims upon a policy under her name without her knowledge.

But thank you, regardless, the situation now appears to be resolved
 
Last edited:

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top