Policyholder Burned by Trusted Insurance Company
John loved his insurance company. He’d been a customer for years and when he broke a windshield in 1992, the company fixed it right away. When his kid got in a fender bender in 1996 the company paid the claim.
When John’s house was destroyed by a fire in 2004 he had complete faith that his insurance company would take care of everything. John was wrong.
The first problem occurred when John found out he did not have enough insurance to replace the house he bought 15 years earlier. Even though he had relied on his agent in determining how much insurance to buy, his insurance policy simply didn’t provide enough coverage.
The second problem occurred when John agreed to use the insurance company’s approved contractors. They must be good, right? After all, the insurance company recommended them. The contractors were great, at least until the money ran out. When the money ran out John was on the hook for all of the additional costs required to complete the construction.
Then, the project got much worse. The original estimate got much larger. The contractors did not show up on time and repairs did not get done. Thunderstorms caused more damage to property, which had not been properly covered by the insurance contractors. One day, the contractors didn’t show up. The company’s president had lost his construction license and the company simply ceased to exist.
When John came to me, there wasn’t much we could do. He didn’t have enough insurance money to fix the house. The damage to the home was now much worse and the insurance-approved contractor was no longer in business. John didn’t have any money to hire new contractors nor could he afford any of the costs that might be associated with litigation.
Sadly, I hear stories like this all the time. People trust their insurance companies because they watch the commercials. By the time they figure out there’s a problem, it’s too late. This website has information to protect you from exactly these types of situation. Protect yourself.
Tip – Despite what an insurance company may imply, you DO NOT have to use their contractors.
The best course of action when significant contract work is required is to get quotes from at least three companies, talk to friends and families who might have used contractors, check with the Better Business Bureau and licensing agencies to find out whether any complaints have been filed, and to ask for (and check with) contractor references.« Back to Client Stories