House Fire Due To Defective Product???

[HoustonTX]

What is the name of your state? Texas

Our house was 25% destroyed due to a defective product fire. Our insurance company has taken the defective product as evidence and is asking us to sign a document stating that we will not sue the defective product company. I am assuming that the insurance company is going to sue and COLLECT to cover the fire damage. The insurance company said that the defective product company will most likely pay my deductible ($1,000). It looks like damages will be right around $100K and 6 months of hotel / apartment living while we rebuild.

The QUESTION: Should I sign this document agreeing not to sue the defective product company? OR should I refuse to sign the document, ask for my defective product evidence back from the insurance company and make the insurance company pay AND hire my own attorney to sue the hell outa the defective product company?

WHAT TO DO???

 

[I AM ALWAYS LIABLE]

My response:

Take it easy. You haven't won the lottery. You're not going to "sue the hell out of" anybody.

The agreement your insurance company (IC) wants you to sign what is called a "Subrogation Agreement." The IC wants to get their money back, by subrogating your rights to themselves so that they can sue the Product company directly. The IC has the resources to accomplish this task, and you don't.

You're getting your money now from your IC and that's all you would get from the "Product company" anyway. And, if you win, you'd wind up having to reimburse your IC pursuant to your contract with the IC.

So, what's in it for you to sue the Product company directly?

Nothing. You wouldn't obtain any more money than what you've suffered in actual damages - - which is the amount your IC is already paying you. And, when you think about it, one of the reasons why you have insurance is to cover you NOW and to make you whole NOW, without having to sue someone else and wait for your money.

So, take it easy, and sign the agreement. Let your IC worry about their money, and the headache of suing the Product company.

IAAL

 

[HomeGuru]

I would like to know what this defective product is and if said product is already listed with the CPSC as a defective or recalled product.

 

[HomeGuru]

Defective product?