Home Owners Policies

Interpreting Homeowners Policy

November 9, 2010 | Mark S. Humphreys

Homeowners in Grand Prairie, Dallas, Fort Worth, Arlington, Mansfield, Irving, De Soto, Duncanville, Carrollton, Coppell, and other cities throughout Texas, probably have very little understanding about their homeowners insurance policy except that it is suppose to help them rebuild their house if it burns down. In addition to that, it is also suppose to provide coverage for you as a homeowner if someone is injured on your property and then sues you for their injuries.

The United States District Court for the Western District of Texas, Austin Division, issued an opinion on September 7, 2010. The style of the case is, Liberty Mutual Fire Insurance Company v. John Trovato and O’Delle Annette Hall. This case deals with the duty of an insurance company to protect its insured under a homeowners policy when they are sued and the interpretation of the insurance contract in that regard.

Here are some facts. On August 2, 2007, Hall came from a home she owned to help Trovato clean boxes out of Trovato’s attic. While moving boxes from the attic, Hall fell through the ceiling. The fall resulted in serious injuries to Hall. Hall sued Trovato. Trovato asked Liberty Mutual Fire Insurance Company to protect him in the lawsuit filed by Trovato. Liberty refused and this lawsuit resulted when Liberty filed this declaratory judgment action to have the court determine whether or not Liberty had any duties under the homeowners policy.

Insurance Policy And Appraisals

November 7, 2010 | Mark S. Humphreys

If you live in Grand Prairie, Arlington, Irving, Dallas, Fort Worth, Burleson, Keller, or anywhere else in the state of Texas and you have a homeowners insurance policy the policy is likely to contain an “appraisal” provision. So what does that mean?

The Texas Court of Appeals, Houston 14th District, issued an opinion on a case

September, 23, 2010, wherein the main issue dealt with an appraisal clause in an insurance policy. The policy at issue was a commercial policy but is essentially the same as those found in homeowners policies. The style of the case is, In re Continental Casualty Company.

Homeowners Liability Insurance

October 7, 2010 | Mark S. Humphreys

Homeowners in Cedar Hill, Grand Prairie, Dallas, Fort Worth, Saginaw, Arlington, Burleson, Crowley, Weatherford, Azle, Aledo, Lake Worth, and all over the state usually know very little about their homeowners insurance except that if their house burns down the insurance is suppose to pay for it. Something else most homeowners insurance does is protect the homeowner when they are sued for certain reasons.

Most insurance carriers such as State Farm, Allstate, Farmers, Geico, Progressive, and many others provide this coverage. Although there are many different types of insurance policies that can insure a home, condominium, apartment, or other dwelling, the Homeowners Policy–Form B (HOB) is the homeowners policy sold to the largest number of homeowners in Texas. As such, the liability provisions of the HOB are most relevant to most homeowners.

An insurance agent is a source for learning about these policies, as is the Texas Department of Insurance. If ever, you believe there is a problem, you should seek the advice of an experienced Insurance Law Attorney.

“Total Loss” In An Insurance Policy

September 5, 2010 | Mark S. Humphreys

Unfortunately, at some point a person in Grand Prairie, Arlington, Weatherford, Dallas, Fort Worth, Crowley, Aledo, Benbrook, and other places in Texas will experience a property loss. This loss may be to their home or their car or some other piece of property. The question will then be; Is the property a “total loss” or is it repairable?

BusinessDirectory.com defines total loss as: Destruction of an asset or property to the extent that nothing of value is left, and the item cannot be repaired or rebuilt to its pre-destruction state. It then says, “some types insurance policies pay the maximum covered amount only in case of total loss.” What is important here is how total loss is determined regarding an insurance policy.

A case decided in 1995 is worth looking at to help understand how a “total loss” is determined. The case was decided by the Texas Supreme Court and is styled, State Farm Fire & Casualty Company and State Farm Lloyds v. Ronald and Marilyn Mower.

Home Owners Claims Being Denied

August 29, 2010 | Mark S. Humphreys

Home owners in Benbrook, Arlington, Grand Prairie, Mansfield, Dallas, Fort Worth, Azle, Aledo, and other places in Texas need to know about what is happening with home owner insurance claims across the nation. Being informed helps you keep your “guard up” when dealing with a home owners claim.

The Washington Post ran an article on August 17, 2010, dealing with policyholders having their home damage claims being denied. The author of the article is Greg Risling and the title of the article is “Suit: Farmers Hasn’t Paid California Wildfire Claims.”

The lawsuit that this article is about was filed in Los Angeles. In the lawsuit it is alleged that Farmers Group Inc. is refusing to pay claims to policyholders whose homes were damaged in last summer’s massive Station Fire.

Homeowners And Flood Claims

August 18, 2010 | Mark S. Humphreys

Homeowners in Grand Prairie, Arlington, Dallas, Fort Worth, Burleson, Coppell, De Soto, North Richland Hills, Keller, Colleyville, and other North Texas cities don’t spend a lot of time worrying about floods, with maybe a few exceptions. However, residents along the Texas Gulf Coast have to think about it all the time. But North Texas residents need to appreciate that the floods along the Gulf Coast also effect them in an indirect way.

An article recently published in the Houston Chronicle brings this issue to light. The article was published on August 9, 2010, and was authored by Spencer Gaffney, who works out of the Washington Bureau. The article’s title is “Insurance From Floods Underwater.”

The article tells us that between 1977 and 1995, the National Flood Insurance Program paid out $806,851 for repeated storm damage to a suburban Houston home that was valued at $114,489. Guess what? The math does not add up.

Homeowners And Settlements

July 25, 2010 | Mark S. Humphreys

Homeowners in the Dallas, Fort Worth, Grand Prairie, Arlington, and Metroplex areas are not as affected by what appears to be a mass settlement for homeowners in the Gulf Coast area of Texas. But it is still a victory, and a victory for one should be considered a victory for all when the insurance company finally does the right thing by accepting responsibility for the homeowners policies it issues.

The Beaumont Enterprise, a newspaper published in Beaumont, Texas, recently ran an article disussing the above topic. The article is written by Mike D. Smith and was published on July 13, 2010. The title of the article is, Mass settlement offered in Ike windstorm cases.

The article tells how the wait could be over for countless Bolivar Peninsula property owners locked in a group stalemate with the Texas Windstorm Insurance Association over Hurricane Ike damages.

Homeowners Insurance – Insurer At It Again

July 17, 2010 | Mark S. Humphreys

No matter where you live – Grand Prairie, Dallas, Fort Worth, Arlington, Mansfield, De Soto, Duncanville, or anywhere else in Texas, you have to keep your eye on insurance companies. If you don’t, they will cheat and try to get away with doing people wrong.

A few weeks ago on this blog there was an article talking about the Texas Windstorm Insurance Association. Well, they are back in the news.

One of our favorite reporters, Purva Patel, with the Houston Chronicle, did a follow up story on the Texas Windstorm Insurance Association. This article was published on July 7, 2010, and is titled, “State criticizes windstorm insurer.” Purva Patel has had a number of articles describing wrongs committed by insurance companies. In the article published on July 7, about the Texas Windstorm Insurance Association, he writes about poor record keeping procedures that Texas Winstorm evidently does not have. Of course, this is wrong. The Texas Insurance Code, Section 542.005(b), says:

Homeowners Claim Denial And Lawsuit In Texas

July 7, 2010 | Mark S. Humphreys

If someone in Hurst, Euless, Bedford, Fort Worth, Cedar Hill, Crowley, Burleson, Irving, Grand Prairie, Arlington, Mansfield, or anywhere else in Texas, has to file a lawsuit because their homeowners insurance company is denying their claim, one thing they want for sure is a successful outcome. The best outcome is usually going to occur in a State or County court, not in a Federal Court. As a result of this knowledge among insurance company attorneys, they will always try to get a case moved to Federal court if there is any way possible of doing so.

This was attempted in the case styled, James N. Wofford, et al v. Allstate Texas Lloyd’s and Randy Paul Johnson. The opinion in this case was signed on June 9, 2010, By Federal Judge, Kenneth M. Hoyt, a Judge in the United States District Court, S. D. Texas, Houston Division.

In this case, the homeowner, James Wofford, had a policy of insurance with Allstate Texas Lloyd’s. Wofford’s home was damaged by Hurricane Ike. Wofford filed a claim with Allstate and Allstate assigned adjuster Randy Paul Johnson, to handle the claim. Johnson was named as one of the defendants in the lawsuit. This case was filed in the 11th Judicial District Court of Harris County, Texas, and Allstate immediately filed papers to have the case removed to federal court.

Homeowners And Mold Claims In Texas

July 6, 2010 | Mark S. Humphreys

Most homeowners in Cedar Hill, Grand Prairie, Arlington, Mansfield, Benbrook, Burleson, Haslet, Saginaw, Fort Worth, or any other city in Texas is not going to have a mold problem with their home. But the ones who do will wonder: What now? Will my insurance cover the costs the mold problem is causing?

Unfortunately, there is no easy answer to these questions.

The quick answer is: It depends on what your homeowners insurance policy says.