Fire Loss

[mannyt]

What is the name of your state (only U.S. law)? Rhode Island

I am presently in litigation with my insurer as I was underinsured 2 weeks before the loss.

I refinanced my home in Jul 03. The bank then sent my agent a request to raise insurance coverage from $137000 to $272000. I went in to my agent Mid Aug 03 to add an engagement ring rider to my policy when the conversation ensued as to the amount of coverage that was put on the home.

The agent informed me that I was over insured because as she explained the appraisal included the value of the land. The structure according to her was valued at $170000 to rebuild. After a short conversation to make sure I understood what she was explaining I agreed to the adjustment if the bank had no problems with the adjustment as it was only going to save me about $50 a year. I went on a short vacation with my fiance. Upon returning I took my regular vacation for about 1.5 weeks during which my home was burned to the ground. The insurance company hired their adjuster which then adjusted the rebuilding of my home at $265000. What on earth just happened? WOW

They are now claiming that they have no control over whether or not the computer software/hardward gives them the right amount for coverage.

WHAT SAY YOU?

 

[ecmst12]

What did your lawyer tell you?

 

[Some Random Guy]

Agreed, you are looking at losing about $75K. Getting a lawyer involved is a no-brainer here.

 

[mannyt]

Fire Loss Reply

My lawyer has been working at a snails pace for a long time. Very difficult to get him to answer calls and so on. I'm sure you get the picture.

In our initial consult he clearly stated to me that this was a straight forward casr that will not see a courtroom. It's been five years!

He is basically telling me now that he is not sure how strong their argument is. He has also been subtly discouraging me from proceeding. I've especially notice his demeanor change since a non-binding arbitration where the arbitrator opened up the path to a computer error being the culprit.

I don't think it requires an Einstein to understand that it is a reason that most assuredly falls under Errors & Ommissions.

If a computer error can be used to relinquish fiduciary responsibility, then how can we trust any service or industry that depends on them.

Thank you for your prompt response.

Manny Torres

 

[ecmst12]

Lawyers do everything slow. If you are worried you are not getting good advice, you can get a second opinion...it won't speed things up, and hiring a new lawyer could end up costing you more money, but at least you'll have a better idea if you are being given bad advice.

I know nothing about how errors & omissions insurance works though.

 

[moburkes]

the E&O claim would be against both the agent and the insurance company. The agent suggested that he go lower than what the bank required, and, if I understand that it WAS a computer glitch on the part of Allstate, then they failed their customer as well. Also, why don't you have a replacement cost guarantee or 125 or 150% RC guarantee? They are standard.