Texas MESS ! Homeowners cancelled

[jahad2]

USAA cancelled all "wind and hail" coverage for coastal properties. Mine was a Dwelling policy, which included hazard, fire, W. & H...AND accidental discharge of water. They cancelled it in Sept. I have found out in the past two weeks that I have a broken sewar line under the concrete slab of my home. Two story, built in the 60's. The lines are original, cast iron or clay. Most homes in that area have already had this problem and been repaired by insurance. The breaks are caused by soil shrinkage/expansion and settling of the house, etc. This is not a problem that happened in just the past 3 months. It is just that no one diagnosed it before. I have had much plumbing work done over the past 3 years, each one telling me: "This will fix the problem!" Minimum repair cost for a re route is $8000.00 I lease the home out and if work is not done will lose it all. It is not paid for yet. I bought it in 1975.

I contacted USAA and of course they would not give me an answer of a yes or no. Said it had to be referred to the underwriters. In TEXAS there is a huge MOLD issue and any water damage, overflo, etc. can result in that. All of the major companies have cancelled policys for water damage/mold coverage and will not write new ones. New buyers cannot get a Homeowners B policy as they could before. I need advice.... and possibly the name of a lawyer that may work on a contingency basis if I end up having to fight USAA to cover this.

 

[ALawyer]

Let's separate the issues.

NON-RENEWAL -- Merely deciding not to renew is NOT wrong, as companies have to be able to make a profit overall and some classes of risks in some locales become to risky to write, sometimes because reinsurance becomes unavailable or too costly, and at other times because experience is horrible and/or rates can't be raised to cover the anticipated costs. Dropping a line of business is thus self protective for an insurance company. BUT the company is liable for INCURRED claims to that point.

THIS CLAIM -- USAA actually has been among the very best carriers in the country in terms of integrity. Thus even if it did something wrong in your case it is far more likely to be regarded as a mistake than having acted in bad faith, and so the ability to get a bad faith punitive damages judgment is almost off the table, which it would not be if the insurer was poorly regarded company.

Now I have no idea if the damage you describe was covered by your policy or not, or what the notice requirements were. Very often gradual dtereioration or subsidance is NOT covered as it is not realy an insurable risk, such as a sudden event. That would reqwuire someone who knows the policy languange and how it has been interpreted in Texas.

For $8,000 a lawyer would not want to handle a case, and be willing to sue, on a contingency fee basis. S/he may be willing ot go just so far, such as a letter.

A public adjuster may be willing to handle the case on that basis, however, could not sue.

I'd look on attorneypages.com or call your local county bar association and see if there is someone who can help.

 

[jahad2]

USAA

I know. I have always felt very confident regarding USAA and their reputation. So much better than the other three major companys to chose from.

I know all ins. companys have a right to sell what they want and where they want. It is just that I had insurance for 25 years with others and have always had the coverage I needed... until USAA pulled out on wind and hail which is what I needed most having a property on the Texas coast which is ripe for a hurricane sooner or later.

Then the break in the sewar line was finally diagnosed and when I need them the most..... they had dumped me. I never filed a claim with them and I have not filed a claim for this ....problem in over ten years. Evidently the contractor who should have done this work ten years ago did not. But I was not there to see it and I did not know....until now. I do not know how long this problem has been caused by a break in the lines....but now the current contractor is telling me that there is possibly a problem with the
PITCH of the house itself!! Either way....the toilets overflow and will not flush and the tub will not drain without causing an overflow downstairs from the toilet...and the only solution is the re route of the lines under the slab.

What else????? Guess I was not meant to keep this home after all. Regardless that I have been paying on it for 25 years. I just THOUGHT that was why I was paying insurance all these years! To protect myself from loss such as this.

Thanks for the response. Perhaps they will do right by me. Who knows. Perhaps I should just try and sell it ....AS IS and swallow that very bitter pill of losing everything I have worked for to hold onto. Without the re route it will not be leaseable anyway.

J.D.

 

[Vickie2002]

He is right! You need a public Adjuster! Fast!
Now you see why the insurance industry makes 4 trillion dollars a year! Not millions.........or billions...........but trillions! I'm sorry I feel for you. Good luck.