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Insurance Cos Defraud Sandy Victims; Are Mass Homeowners Next?

Posted by Mark Paskell on Tue, Mar 03, 2015 @ 10:11 PM

hurricane sandy damage resized 600In good faith you sign the insurance policy application and pay the premium thinking you will be protected if you sustain severe storm, water, flood or fire damage. The time comes and you have damage. You file a claim and you think you are covered per the policy and then you discover after months or years that you have been screwed by the very insurance company who you trusted.

Link to 60 Minutes Video

http://www.cbsnews.com/videos/the-storm-after-the-storm

Sunday night on 60 Minutes we learned that hundred of Hurricane Sandy Victims were defrauded after their homes were assesses. Structural engineers assessed and reported severe structural damage and filed supporting reports. Then the insurance companies altered the reports to save hundreds of thousands of dollars. There are currently over 2000 claims getting scrutinized. Yes that's right, 2000. 

Massachusetts Homeowners Brace and Wait For Insurance Adjusters To Survey and Pay For Damage.

 **See New Workshop to Help Contractors Help Homeowners With Their Claims

Right now in Massachusetts we have thousands of homes damaged from roof collapses, ice dams, frozen pipes that flooded interiors, roof damage and more. Hopefully Mass homeowners will fare better then the Sandy victims. Unfortunately, I got two calls today about severe damage to homes and the insurance adjusters low scope of work and estimate amounts. The homeowners are scared that they are not getting fair treatment from the adjusters. One claim has an adjuster from down south who is only here for a couple of weeks. He told the homeowner he will send a quote in a few weeks, don't call him, call your agent.

On another called the insurance company about ice dams leaking into the house. They told the homeowner they could not get to their house for a few weeks just move your valuables and put some buckets under the leaks! I sent a contractor client to remove the snow and ice and we will help them with the claim and make sure they recover all that is covered under the policy. 

There is a way to make sure that a homeowner does not become a victim of a low ball insurance estimate that does not cover the right scope of work for the storm damage. I recommend that work with a licensed contractor (you) who will assess the property damage. Homeowners should not accept the insurance companies offer until you can have it checked out. Also let homeowners know that if they go it alone with the insurance company they may end up settling for a lot less than is covered. Insurance adjusters are famous for not telling you that you have coverage for other things that you do not know about.

I also recommend that homeowners ask to see proof that the insurance adjuster has construction experience. If the adjuster does not how can he properly assess damage and rebuilding? Will he be able to assess and prepare a scope of work that will meet existing building codes? Will he include the permit in the estimate amount or will the homeowner have to pay for that out of their own pocket? Insurance adjusters with no building experience are a huge problem for proper scope of work development.

In a few weeks I will be training contractors how to help homeowners receive accurate and fair estimates for the damages they have sustained this winter. This training will teach contractors how to fairly, professionally and systematically assess and prepare loss estimates for homeowners. If you know of a homeowner getting the run around on a claim we can help you help them. Contact me for assistance. The link for the Insurance Claim Workshop is below.

 

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Tags: insurance claims