Loss of Inventory Claim (Renters Insurance)

[Johnsonc1]

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

Not sure if this is the right spot for this question but how long do insurance companies have to respond to claims? Our apartment had an exterior load bearing wall collapse about 3 months ago. The building was condemned and all tenants evacuated permanently. In the following week half of the building was demolished. Our half of the building is still standing until its fate is determined. We received money for our loss of use claim very quickly but the loss of inventory claim was submitted over a month ago. Our insurance adjuster is saying the coverage of our contents is pending the decision to demolish the unit or repair it. What is stopping them from telling us it is pending that decision forever? Is there any sort of time limit on when they have to make a decision?

 

[Zigner]

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

Not sure if this is the right spot for this question but how long do insurance companies have to respond to claims? Our apartment had an exterior load bearing wall collapse about 3 months ago. The building was condemned and all tenants evacuated permanently. In the following week half of the building was demolished. Our half of the building is still standing until its fate is determined. We received money for our loss of use claim very quickly but the loss of inventory claim was submitted over a month ago. Our insurance adjuster is saying the coverage of our contents is pending the decision to demolish the unit or repair it. What is stopping them from telling us it is pending that decision forever? Is there any sort of time limit on when they have to make a decision?

Why/how have you lost inventory

 

[Johnsonc1]

Why/how have you lost inventory

Sorry, its a long story I wasn't sure how much details to put in the question. We were only allowed back in the building after the initial collapse once. We were lucky that the demo company was nice, they brought trash bags filled with some of our belongings to us and allowed us to go inside and gather items for about 20 minutes. We were able to get clothes and things that meant a lot to us but a lot of our belongings we didn't have time to get. We submitted the claim for all the items remaining in the apartment.

 

[Zigner]

Sorry, its a long story I wasn't sure how much details to put in the question. We were only allowed back in the building after the initial collapse once. We were lucky that the demo company was nice, they brought trash bags filled with some of our belongings to us and allowed us to go inside and gather items for about 20 minutes. We were able to get clothes and things that meant a lot to us but a lot of our belongings we didn't have time to get. We submitted the claim for all the items remaining in the apartment.

The phrase "loss of inventory" is an interesting choice of words, as it would usually deal with a business. What you're talking about is personal property. It might be a bit soon, but I would suggest that you keep pushing the insurance company to speed this along.

 

[adjusterjack]

We submitted the claim for all the items remaining in the apartment.

That's the problem.

That part of the claim stays pending until the items are either retrieved or obliterated when the building comes down.

That's a valid reason for the insurance company to delay paying for those items.

And a month or two (or even more) is not unheard of, or illegal, when there is good reason for the delay.

Getting technical for a moment, there is also the issue of coverage.

You have a renters policy that covers collapse of a building or part of a building. Within that coverage is an insuring agreement (you can find it in your own policy) that says:

We insure for direct physical loss to covered property involving collapse of a build-ing or any part of a building if the collapse was caused by one or more of the follow-ing:
(1) The Perils Insured Against;

Now go to the section entitled Perils Insured Against.

You should find a list of 16 perils. Not one of them describes the condition of your property at this time so nothing is payable until the condition of the property is determined.

As long as the property can potentially be retrieved undamaged there is nothing for your insurance company to pay.

Your insurance company has no control over when the decision about the building's future gets made and is, therefore excused from any statutory deadlines that may exist.

So, yes, there could be an indefinite delay.

 

[Johnsonc1]

Thank you for all of your responses I am learning a lot!

As long as the property can potentially be retrieved undamaged there is nothing for your insurance company to pay.

So this leads to another question and more details from the story - Who decides if the property is damaged? When we went inside to get as much as we could there was insulation and other construction related materials and dust all over the place from the demo. Also, the demolition left our apartment exposed to the outside air in a few places. They were able to place a large tarp over the building but I don't think that would prevent moisture from getting in. I can only imagine the smell in that place, it was unbearable only a few days after the event, now its been a few months! Do you think even if the building is repaired and they get our stuff out it might come down to an argument over each individual item on if its damaged or not?

 

[adjusterjack]

Who decides if the property is damaged?

Nobody "decides." It's either damaged or not damaged (like Schrodinger's cat). The insurance company pays upon receiving proof of damage.

If the property can be inspected at some point you would be able to provide proof of damage.

If the building is torn down then damage is presumed but you are likely to have to prove what you had and what it cost.

When we went inside to get as much as we could there was insulation and other construction related materials and dust all over the place from the demo.

Did you take photos? Had you taken photos that might have helped. If you didn't think to take photos then you'll have to wait.

Also, the demolition left our apartment exposed to the outside air in a few places. They were able to place a large tarp over the building but I don't think that would prevent moisture from getting in. I can only imagine the smell in that place, it was unbearable only a few days after the event, now its been a few months! Do you think even if the building is repaired and they get our stuff out it might come down to an argument over each individual item on if its damaged or not?

It might. It depends on what the items are and whether they can be cleaned or repaired.

That will be decided upon inspection of the items.

You're in a situation that doesn't happen very often and being stuck in limbo like that isn't pleasant.

Is there any way that you can be allowed back in to your apartment so you can take photos of the items?