fire insurance adjuster

[jayo96]

What is the name of your state? alabama

Hi, My mom had and electrical fire as confirmed by the fire chief and lost a 1/3 of the house totally, the rest had only smoke damage. she only had 20,000 dollars in fire insurance and another 10,000 in furniture. The insurance company imediately came out and within a week and estimated the damage of the fire at 6,200, which includes the structure and her belongings. The house is at least 60 years old and the wiring is somewhat suspect. I ask the adjuster to consider the wiring in his damages since it was partially destroyed in the fire. The utilities took the electrical box, and will not replace it until the house is totally rewired. the estimate of that was 4800.00 dollars. My question is ..if the wiring caused the fire, would it not be up to the insurance company to include that in the total damage to the house? My mom is 77 years old and the house is paid for. I'm thinking of getting a public adjuster, I'm just trying to figure out what to do next. thanks for your response in advance

 

[moburkes]

What is the name of your state? alabama

Hi, My mom had and electrical fire as confirmed by the fire chief and lost a 1/3 of the house totally, the rest had only smoke damage. she only had 20,000 dollars in fire insurance and another 10,000 in furniture. The insurance company imediately came out and within a week and estimated the damage of the fire at 6,200, which includes the structure and her belongings. The house is at least 60 years old and the wiring is somewhat suspect. I ask the adjuster to consider the wiring in his damages since it was partially destroyed in the fire. The utilities took the electrical box, and will not replace it until the house is totally rewired. the estimate of that was 4800.00 dollars. My question is ..if the wiring caused the fire, would it not be up to the insurance company to include that in the total damage to the house? My mom is 77 years old and the house is paid for. I'm thinking of getting a public adjuster, I'm just trying to figure out what to do next. thanks for your response in advance

Important question: Approximately how is the house worth?

 

[jayo96]

60,000 thousand according to fire marshalls report

 

[moburkes]

60,000 thousand according to fire marshalls report

Okay. Since your mother's house was only insured for a portion of its value, the insurance company is only going to pay a portion of the damage.

 

[jayo96]

So what you are saying is that they are not responsible for the wiring even though it was the cause of the fire? and also do you think its worth the trouble to get a Public Adjuster?

 

[moburkes]

So what you are saying is that they are not responsible for the wiring even though it was the cause of the fire? and also do you think its worth the trouble to get a Public Adjuster?

Sue ther person who installled the faulty wiring. Your insurance company was not that person.

However, lets say that faulty wiring is covered under your insurance policy. Your mother still did not insure her home for the full value. Let's just round numbers.

House is worth $60,000. Damage, including smoke damage, is 1/3 of the value, or $20,000. Personal property is also damaged for 1/3 of the value, or $3,300. **This is debatable, since you didn't include any information about this in your original post.**You are also adding damage to the electrical box for an additional $4800. Therefore the total damage is $28,100.

However, your mother only insured her house for 1/3 of the value. If the electrical box replacement cost is covered, which it isn't, then your mother's total claim would be approximately $9400. Without the electrical box in the equation, her total damages are $7766. Subtract out her deductible, which is usually $500. That brings us to $7166. And that's using rough numbers.

The insurance company is not responsible for your mom not maintaining her house. They paid for the damage cause by the faulty wiring, but they are not responsible for fixing it. If that's the case, they'll be fixing driveways with cracks, doors that are drafty, etc.

 

[moburkes]

So do you think its worth the trouble to get a Public Adjuster?

No. If your mother had insured her house with the proper amount of coverage, this would not have been an issue.

 

[jayo96]

Thanks, you have really been a great help!

 

[moburkes]

Hello,

I have been reading the advice you have recieved regarding the fire in your mother's home. As I understand it, your mother took out an insurance policy with a limit of $20,000 and you feel that someone should be responsible for the faulty wiring that caused the fire.
I think that is a natural response, however, other commentators mentioned that if insurers are held responsible for issues like wiring or neglected repairs, they would be out of a job. Therefore, it appears to me as though your insurer is doing their part (check the numbers exactly though, you want to recieve the maximum benefit). Another question that's important to address is what exactly constitutes "faulty" wiring. The wiring may have been old or neglected. Homes demand a tremendous amount of maintnence and the homeowner is responsible for keeping up with proper and necessary repairs. Additionally building codes change frequently, it may be worth it to check out exactly when the house was built and investigate what the codes were at the time. It is possible that the wiring was done in line with older codes. Additionally, the previous owner, unless they built the house or installed new wiring, has little to with the current state of affairs. When selling a home, people are required to disclose what they know about the home to the buyer. The previous owners may simply not have known that any problems existed with the wiring. Filing a legal claim against the previous owner, as one commentator advised, is a huge step, and it may not be the right one. Unless the owner intentionally hid information about faulty wiring from the purchaser, you probably don't have a case that will stand up in court.

At this point, it would be best to resolve the claim with the company and ensure that you recieved all compensation covered in your policy. It is also important to understand what type of reimbursement your policy gives you. Because the policy is only partial coverage, my guess is that it is a cash value policy. This means that you are reimbursed for the damaged property at the it's original cost, which is likely substantially lower than it actually costs to go to the store today and purchase functional replacements. The alternative to this form of compensation is a replacement cost policy. A replacement cost policy pays for what the items will cost you now to replace. This form of policy is typically a little more expensive but it has a greater value because it offers a wider scope of protection. There isn't much that you can do to alter the situation now but in the future there are several steps that can be taken to avoid similar claims issues.

1. Understand exactly what type of compensation a Homeowner's policy provides.
2. Read your policy carefully so that you know what is covered. As a homeowner you are responsible for the maintence and care of your property and the insurer will not porvide compensation for neglect.
3. Policies work in the direction of the consumer and in the direction of the insurer. This means that if a consumer is willing to pay higher premiums, they will probably recieve the maximum coverage when they make a claim. If they opt for a lower policy, the insurer simply does not have an obligation to pay coverage beyond what they are specifically responsible for. As a rule of thumb, too much insurance is a far better way to go than not attaining enough. It's always better to be safe than sorry.

I hope this information helps and wish you the best of luck in resolving this claim to your greatest benefit. If you have any other Homeowner's Insurance questions or general insurance questions please feel free to post it in the forum at The Service Exchange. I will respond personally and promptly on the forum or through company e-mail. Your visit is welcomed!

Sincerely,
Jenna at The Service Exchange

Where did OP talk about any previous owner? Also cash value does not mean replacing the property at its original cost. WRONG ANSWER. Also, this person is asking for his mother, not himself. Who are you?

 

[jayo96]

I have one more question, The estimate my mother was given only covers items damaged in the fire such as appliances, doors, wall coverings etc...Are they not supposed to include labor in this cost. Materials they have listed to be replace adds up to nearly $7,000.00. I am going to have to get a contractor at some point, is that my responsibility? and if so, is that the way adjusters operate without including the cost of contractors? Or should I get a couple of estimates from contractors before I decide on this claim? Once ahain thanks in advance for your help!

 

[jayo96]

have one more question, The estimate my mother was given only covers items damaged in the fire such as appliances, doors, wall coverings etc...Are they not supposed to include labor in this cost. Materials they have listed to be replace adds up to nearly $7,000.00. I am going to have to get a contractor at some point, is that my responsibility? and if so, is that the way adjusters operate without including the cost of contractors? Or should I get a couple of estimates from contractors before I decide on this claim? Once again thanks in advance for your help!

 

[moburkes]

have one more question, The estimate my mother was given only covers items damaged in the fire such as appliances, doors, wall coverings etc...Are they not supposed to include labor in this cost. Materials they have listed to be replace adds up to nearly $7,000.00. I am going to have to get a contractor at some point, is that my responsibility? and if so, is that the way adjusters operate without including the cost of contractors? Or should I get a couple of estimates from contractors before I decide on this claim? Once again thanks in advance for your help!

Seriously, read the insurance policy, or ask the adjuster. You haven't done any homework at all, yet you're doubting everything that this adjuster presents to you (your mother). Once you have done that, please come back, and tell me what you've found. Then ask away. Thanks!