Advertisement

Author Topic: Homeowners, know your Insurance  (Read 1184 times)

0 Members and 1 Guest are viewing this topic.

sacleads

  • Guest
Homeowners, know your Insurance
« on: January 17, 2013, 03:07:01 PM »
http://news.yahoo.com/couple-says-allstate-short-changed-them-put-home-194957583--abc-news-money.html

A Staten Island couple said their insurance company short-changed them after superstorm Sandy destroyed their home, and then used their house in a commercial.
 
In October, Sheila Traina, 64, and her husband, Dominic, 66, had evacuated their home in New Dorp Beach in response to warnings from local authorities about the storm.
 
Traina said a neighbor who had stayed behind called and told them the wind had knocked the roof off their two-story home but their insurer, Allstate, said the damage to their home was due to flooding.
 
"He said the house came down before the storm, came down and water finished it off," Traina said of her neighbor.
 
Allstate told her it was storm surge that caused the damage, she said.

The insurance company offered the Trainas, who did not have flood insurance, about $10,000 for the damages. They say the amount is well short of the $280,000 for which their home and its contents were insured.
 
"We have a witness," Traina said. "If you witnessed a murder, someobody would get convicted I would think."
 
The storm's winds also knocked down a 30-foot tall tree across the street, Traina said.
 
She said she has refused to accept the $10,000 and is planning to hire an attorney to fight for a settlement that matches the value of her home.
 
In the meantime, the Trainas are staying in a family member's home that is three miles away. Her husband is retired but they have income from his late mother's home, which they are renting.
 
Traina, an administrative secretary, said she had hoped to retire next year, but her plans are on hold until they can rebuild their home.
 
A spokeswoman from Allstate said the company is "committed to resolving the matter in accordance with the policy they purchased from our company."
 
"Allstate is always focused on ensuring our customers are completely satisfied," the spokeswoman said. "In major disasters such as Sandy, we are often the first on the scene providing financial and emotional support."
 
The Trainas said they previously had flood insurance, provided by the U.S. government's National Flood Insurance Program, but their payments were more than the reimbursement amounts they received for previous incidents.
 
Traditional private homeowners policies, such as those of Allstate, do not cover flood losses, the company said.
 
"We encourage our customers to consider flood insurance to protect themselves in ways that would not be covered under a homeowner's policy," Allstate said.
 
What the Trainas said upset them further was that an image of their damaged home was used in a commercial for Allstate, as first reported by the newspaper, the Staten Island Advance.
 
After their Thanksgiving dinner, Traina said her husband and grandchildren were watching a football game when her grandchildren said they saw their home in a television advertisement.
 
"It was just a picture of our chair and our kitchen window but it was noticeable what they were showing," she said. "It was not a happy Thanksgiving after that."
 
Allstate said the advertisement "showed general images of the destruction caused by Sandy including a partial image of the Trainas' home."
 
"It does not reference them as customers or in any way imply they are satisfied with the status of their claim. We regret any concern this advertisement may have caused the Trainas and images of their home will not be included in Allstate's advertising," the company said.
 
Allstate said it has made almost $1.1 billion in claim payments and continues to work with local Allstate agencies and The Allstate Foundation's support of non-profit organizations.
 
Debra Hernandez, who lives on the same street as the Trainas, said besides flooding in her basement and a large shed that was destroyed, her home was spared.
 
"They paid me a decent amount for my structure so I'm more than satisfied," said Hernandez, who bought her home a year and a half ago. "What I claimed was pretty close to what I asked for."
 
Hernandez said she received a net of $2,700 after paying her $5,000 deductible.

Hernandez said she purchased flood insurance, and received a reimbursement for her flooded basement.
 
"Obviously I did not lose as much as other people," Hernandez said.
______________ ______________ ______________ ______________ ______________ ______________ __________

This story got me thinking about insurance. A home is one of the most expensive purchase we are going to make in our lifetime.  And yet, people many times failed to insure/protect it properly or end up insuring it with the WRONG insurance company.

As far back as the beginning of 2000 when I first got into Property Insurance, I read stories that Allstate has been dirty when it comes to paying for claims.   They even ended up on an ABC "20/20" TV show.  I have friends who does home repairs and they out right refused to do even bid for repairs once they find out its insured by Allstate. 

With that said, you need to properly insured your house.  Depending on where you live and the type of disasters that are common in your area.  For example, in CA Flood and Earthquake insurance are not covered by your homeowner's insurance.  You'll need to buy them seperately.  Just because you don't live in a flood zone doesn't mean your house will never be flooded.  I have seen over the years, all those people on the news telling their story about not buying any flood insurance because they weren't in a flood zone.  Just because earthquake is rare doesn't mean, it won't ever happen. 
So people, insure your house properly.

Another thing about Homeowner's insurance.  It is not wise to constantly filing claims for little things.  It will come back and bight you in the arse.  Use it when it causes much financial hardship.  Don't go around filing a claim because one of your window is broken or someone came in a took or HDTV and PS 3. 

Another thing, people don't think about it when they buy a house is Life Insurance.  So what does Life Insurance have to do with owning a home?  Well, we all are pretty much a two income household now.  Do you think you can continue to pay the mortgage if your spouse died and you no longer have access to his/her income?  Chances are..the answer is "NO".

Most people insured a 30 year mortgage with a 30 yr term policy.  If you are young couple in your 20s or 30s, it's dirt cheap to get term insurance...as long as you are in good health.

Know your insurance, know your coverage...yes, insurance sometimes seems like it's a waste of money but having proper insurance and going with a good insurance company that will pay for claims will ease one's suffering in their darkest moments.   



Like this post: 0

Adverstisement

 

Advertisements