Insured people in Weatherford, Fort Worth, Grand Prairie, Mineral Wells, Springtown, Azle, Aledo, and other places in Tarrant and Parker Counties might understand a little more about misrepresentation after reading about the case here.
The case is styled, Tellez v. Encompass Insurance Company of America.
This opinion was issued by the United States Federal District Court, Eastern District, in 2004. Here are some of the facts.
When someone in Grand Prairie, Weatherford, Fort Worth, or anywhere else in the north Texas area suffers an insured loss, how long do they have to report the claim to their insurance company? The answer is a lawyers answer: It Depends.
The Fifth Circuit Court of Appeals dealt with this issue in an opinion it issued in 2005. The style of the case is Ridglea Estate Condominium Association v. Lexington Insurance Company. Here are some of the facts.
In July 2001, after receiving notice from a roofing inspector that its building in Fort Worth, Texas has suffered hail damage, Ridglea filed an insurance claim with its carrier Chubb Custom Insurance. Upon its inspection, however, Chubb informed Ridglea that the damage was not caused by the more recent storm but rather by a storm that occurred on May 5, 1995. Ridglea did so and filed the claim with the 1995 carrier, Lexington Insurance Company. Lexington’s inspection revealed that the damage did not exceed the deductible and that there was not sufficient evidence that the damage occurred in 1995 and denied the claim. After about a year’s worth of negotiations involving Ridglea and all its insurers, Ridglea made a final demand. Lexington again denied the claim and brought a declaratory judgment action seeking a ruling that it was not liable for the damage. Both parties moved for summary judgment and the trial court granted summary judgment in favor of Lexington holding that Ridglea had failed to comply with the notice requirements contained in the policy. Ridglea appealed to the U.S. Court of Appeals for the Fifth Circuit.
If you are in Grand Prairie, Arlington, Fort Worth, Roanoke, Keller, Colleyville, Saginaw, or some other place in Tarrant County or Texas and find yourself in some financial trouble, it may be that you find yourself letting your homeowners insurance lapse. If that happens the mortgage lender on your home will buy what is called a force-placed insurance policy and charge you with the premium. There are a bunch of problems when this happens. Two of these problems are real important to you.
First, is that force-placed insurance is very expensive and you are responsible for paying it.
Second, is that a force-place policy covers the mortgage holder not you. In other words, none of your personal property or the contents of the house is covered in the event of a fire loss. Further, if you are sued by someone, the insurance does not cover you. If you get burglarized, you are not covered.
No one in Grand Prairie, Weatherford, Fort Worth, Dallas, or anywhere else in the North Texas area would want to be in a situation where their spouse deliberately sets the house on fire. This is something that might happen in a divorce setting or maybe it is just the result of a really bad fight. So what happens as it relates to insurance?
A San Antonio Court of Appeals opinion issued in 1996, sheds some light on this question. Here is some background. The style of the case is Sanders v. Commonwealth Lloyd’s Insurance Company.
Jan and Dan Saunders’ house was completely burned down by a fire. The insurance company investigated the claim and concluded that Dan was responsible for setting the fire. Dan was convicted of a felony of conspiring to burn down the house which was later reversed and he was acquitted. In the meantime, the insurance company, Commonwealth Lloyd’s, denied the claim.
Here is an article for people living in Grand Prairie, Fort Worth, Arlington, Hurst, Euless, Bedford, and other places in Tarrant County. It is from the Washington Post Business Page and authored by Noah Buhayar. The article was published on January 11, 2012, and much of it appears below.
Allstate Insurance Company, Travelers Insurance, and State Farm Automobile Insurance Company are among insurance companies raising homeowners’ rates after damage from natural disasters defied industry projections.
Allstate, the #2 United States home insurer, boosted prices for its namesake brand of home policies by 5.6 percent in the nine months through September 30, and has said more increases are coming. Travelers is raising rates after re-evaluating United States storm risk. State Farm, the largest U.S. home insurer, has charged homeowners more nationwide for three straight years.
Appraisal – People in Grand Prairie, Arlington, Fort Worth, Dallas, Keller, Coppell, Farmers Branch, Hurst, Euless, Bedford, and other places in the DFW area are probably not familiar with the way appraisal works in an insurance policy.
The Texas Supreme Court issued an opinion in 2009 that deals with appraisals. The style of the case is State Farm Lloyds v. Becky Ann Johnson. Here is some background.
A hailstorm moved through Plano, Texas in 2003, damaging the roof of Becky Ann Johnson’s home. She filed a claim under her homeowners insurance policy with State Farm. The inspector concluded that hail had damaged only the ridgeline of her roof, and estimated repair costs at $499.50, which was less than her deductible. Johnson’s roofing contractor concluded the entire roof needed to be repaired at a cost of more than $13,000.
If someone in Weatherford, Mineral Wells, Aledo, Azle, Springtown, Hudson Oaks, Willow Park, Millsap, Brock, Cool, or some other place in Parker County suffers a loss that should be covered by their homeowners insurance, one of the first things they should do is to consult with an experienced Insurance Law Attorney.
The Texas Department of Insurance (TDI) use to require that all homeowners policies written in Texas require a certain format and contain certain required coverages in that homeowners policy. In recent years TDI has allowed insurance companies to write their own policies without as much over sight. However, most policies are still following the rules as outlined by TDI.
These current homeowners policies follow two basic forms. One is called the Homeowners — Form A (HOA) and then other is referred to as Homeowners — Form B (HOB).
An insured in Weatherford, Mineral Wells, Aledo, Azle, Willow Park, Hudson Oaks, Brock, Millsap, Peaster, Cool, Springtown, or anywhere else in Parker County may wonder how much they are suppose to do to help the insurance company when a claim is submitted for coverage. The answer is – quite a bit.
As for homeowners policies in Texas, the form and wording of the majority of policies follow what is called the Texas Homeowners Policy – Form B (“HOB”).
The HOB Policy requires that the insured cooperate with the insurer’s investigation of the claim by promptly submitting notice of the claim, completing an inventory of the damaged property, providing access to the damaged property and records, and signing a sworn proof of loss form. These requirements on the insured constitute a condition precedent to coverage under the policy. A United States, 5th Circuit case styled, Griggs v. State Farm Lloyds, decided in 1999, said absent the insured’s compliance with the conditions precedent to coverage, the insurer has no duty to provide benefits under the contract.
Anybody in Weatherford, Mineral Wells, Aledo, Azle, Hudson Parks, Willow Park, Brock, Millsap, Cool, Springtown, or anywhere else in Parker County, who owns a home, will find this interesting.
The Houston Chronicle published a story on October 13, 2011, titled, Home Insurance Rates Rise As Coverage Falls. The author is Purva Patel who has written several article on insurance in Texas.
The article tells us that the insurance companies in Texas are dropping or decreasing certain coverages to allow them to control costs and, in turn, keep a handle on the rates they charge. Consumer groups say its a reflection of lax oversight by the Texas Department of Insurance (TDI) and regulations coming out of Austin.
Everyone in Grand Prairie, Arlington, Fort Worth, Dallas, Irving, Mesquite, Garland, Carrollton, Duncanville, De Soto, and other places through out Texas need to know how to make sure they get paid properly and fully when making a homeowners claim.
One way is to see an experienced Insurance Law Attorney early in the claim. Another way is to make sure you have good records of your possessions.
The Wall Street Journal published an article on October 13, 2011, authored by Lori Bennett. The title is “Accounting for Disaster: Itemizing Your Home.”
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