Bursted Pipe Insurance Coverage

[1jojo]

What is the name of your state?
I reside in New Jersey. My house was on the market and during the final walk-thru, the buyer and their realtor discovered falling ceilings and water everywhere from a pipe that burst. The home was vacant and the water had probably been running for two days. A clean out/dry out/demolition company was dispatched by the insurance co. The house now sits with most of its interior walls and ceilings gone and the insurance co has the audacity to drag their feet re coverage for the repairs. It has now been three weeks and I still await a decision. The buyers still want the house. If I sell, can I assign the repair money to them? Is is legal that they can actually deny coverage??? The thermostate and boiler were on, although not as high as when someone occupied the residence. The house was constantly checked on by me, family and various realtors. I'm panicking!! The estimate for repairs acccording to the insurance company's contractor is $58,000. HELP!!

 

[claimlaw]

Assignment of Right of Recovery, etal

Yes. You may assign your right of recovery to a third party. You must still cooperate with the insurer's investigation. In practice, you will undertake the same burdens in perfecting the claim whether or not you assign the proceeds to another party. Further, until there is a closing, any proceeds will be made payable to you, the third party and your mortgage company. In all, the best approach is to accept a new offer from the buyers, subject to inspection of the repaired property, OR, enter into an agreed value on the repairs with the buyer and reduce the sales price accordingly. In this latter option, you have the opportunity to come out well ahead or well upside down dependent on your abilities to properly settle the loss.

Re: Coverage issues; the only potential issue is "was the house vacant?" Look up "vacant" in your Definitions under Section 1. Generally a house that has been occupied in the last 90 days is not vacant and one where continuing "work" activities are being conducted is also, not vacant. Vacant properties are generally not covered under an HO policy.

Re: Insurance company's contractor; be very careful. This contractor works for you. Never sign an assignment/direct bill agreement with a fire/water damage repair contractor.

If you care for a referral to a qualified consultation in your area, I would be happy assist.

Claimlaw

Claimlaw1atsbcglobal.net [remove "at" and replace with @]

 

[Mr. Ricco]

You are relying on the insurance company to determine coverage and your damages and you complain?
Read your policy; it should be in english.
Get an estimate from a contractor YOU select to determine what has to be repaired and what a fair and reasonable cost to do so is.