[retiredguy123]

Originally Posted by SharonW

The sad thing about claims is that insurance companies will settle a claim vs legally challenging because the settlement is less than cost to legally challenge.

Are you sure? I find it difficult to believe that the fly-by-night roofers who are going door to door in The Villages are prepared to take a large insurance company to court. Do you have any specific evidence that the insurance companies are willing to pay thousands of dollars to replace a roof because they are afraid of a small local roofer taking them to court over a bogus claim?

[Lbmb24101]

Sharonw
Your pist was veeeery helpful
Thanks!

[Lbmb24101]

Post

[SharonW]

Originally Posted by Bjeanj

Our homeowners policy covers catastrophic sinkholes. We found out that if we want the other type, we would have to pay half the cost of an inspection prior to obtaining the other sinkhole insurance. Well, we don’t know what that cost would be, nor did Villages Insurance. Then, if we got approved, we don’t know what this coverage would cost.

So, we’re in the process of mulling this over.

There are companies that will endorse coverage. No they do not require you pay for inspection!

[SharonW]

Originally Posted by cj740@comcast.net

Does everyone in TV have sinkhole insurance on HO policy? Recommendations for a provider of HO insurance? Thanks very much.

Most all companies offer sinkhole. Call and talk to Stephanie Winfrey at 352-259-3825.

If your home qualifies (based on age built and roof age)she can offer with deductible as low as $500.00. She also has companies that offer the 10% deductible. Very knowledgeable agent and very honest.

[SharonW]

Originally Posted by retiredguy123

All Florida homeowners policies are required to have coverage for "catastrophic ground collapse". But, "sinkhole" coverage is optional and not always available for all houses. Basically, sinkhole insurance will cover any damage to your property caused by a sinkhole, even if your house is not damaged. Catastrophic ground collapse insurance will exclude some sinkhole damage, especially if you house is not damaged or destroyed.

Not true. There must be damage to structure. Land is not covered.

[SharonW]

Originally Posted by retiredguy123

Are you sure? I find it difficult to believe that the fly-by-night roofers who are going door to door in The Villages are prepared to take a large insurance company to court. Do you have any specific evidence that the insurance companies are willing to pay thousands of dollars to replace a roof because they are afraid of a small local roofer taking them to court over a bogus claim?

First of all the roofer is not the insured you are. 2nd, there are lawyers who will Sue insurance companies on behalf of the insured every day. No different than a liability claim. This is what they do for a living.

Yes, it happens everyday. Companies will settle to keep cost down. Everyone complains about premium increases but have no idea the cost vs claims paid out.

Example: $250,000 insured 1800 square foot home. Roof replacement around $10,000. You pay an annual premium of $800.00. Deductible $1000. Company pays out $9,000.

9,000 divided by 809 = 11.25 Years of premium. Multiply that by a neighborhood of homes. Throw in wind, sinkhole, lightning, water claims etc. that is just property claims.

[retiredguy123]

Originally Posted by SharonW

First of all the roofer is not the insured you are. 2nd, there are lawyers who will Sue insurance companies on behalf of the insured every day. No different than a liability claim. This is what they do for a living.

Yes, it happens everyday. Companies will settle to keep cost down. Everyone complains about premium increases but have no idea the cost vs claims paid out.

Example: $250,000 insured 1800 square foot home. Roof replacement around $10,000. You pay an annual premium of $800.00. Deductible $1000. Company pays out $9,000.

9,000 divided by 809 = 11.25 Years of premium. Multiply that by a neighborhood of homes. Throw in wind, sinkhole, lightning, water claims etc. that is just property claims.

That doesn't answer my question. Why would an insurance company pay $9,000 for a claim that has no merit? Most people are not going to hire a lawyer to sue an insurance company. There are a lot of roofs being replaced in The Villages that were not totally damaged by wind. Many of them only have minor damage or none at all.

[SharonW]

Originally Posted by retiredguy123

That doesn't answer my question. Why would an insurance company pay $9,000 for a claim that has no merit? Most people are not going to hire a lawyer to sue an insurance company. There are a lot of roofs being replaced in The Villages that were not totally damaged by wind. Many of them only have minor damage or none at all.

People do hire lawyers all the time. Lawyers get a % of what they collect. Happens every day. Roofers tell the insured to call so and so attorney. Have you seen the ads on TV? There are agencies in The Villages that write lots of home policies. Each year the insurance company gives them their loss ratio. Claims paid vs premium collected. Many have over 100% loss ratio. Zero profit.

When I was an agent I had clients who called to report a claim and said they hired an attorney. I asked once, Why would you do that before even turning in the claim? There answer, “That is what they tell you to do on TV.”

[SharonW]

It cost the company less out of pocket to settle a claim than to Drag out a case in court.

[retiredguy123]

Originally Posted by SharonW

It cost the company less out of pocket to settle a claim than to Drag out a case in court.

I guess we just disagree. I don't think most homeowners would hire a lawyer to sue their insurance company for a roofing claim that has little or no merit. I surely wouldn't, and most honest people wouldn't either. The normal process is for the insurance company to send out an adjuster to determine if the roof damage was caused by a weather event. The adjusters are mostly fair and will approve valid claims and reject bogus claims. In my experience, that is the normal process. People don't sue "all the time". Insurance companies cannot afford to pay meritless claims, but they will pay valid claims. This has also been confirmed by my insurance agent. I would suggest that, if you think your roof has been damaged by weather, you should contact your insurance company. Do not allow a door-to-door roofer to inspect your roof or sign an "assignment of benefits" agreement that they present to you. And, don't hire a lawyer unless you really think you are being cheated. The vast majority of issues can be handled without a lawyer or a shyster roofer.

[SharonW]

I agree with most of what you have said but you would be surprised how many do hire attorney. Times have changed. It is sad.