The following is an insurance claim question we answered for a policyholder through the United Policyholders Ask an Expert Forum.

Q. We are survivors of Hurricane Maria. Our property sustained severe damages from the wind and rain. The insurance company´s adjuster reports damages amounting to $36,000. But they are only offering $10,000 arguing that we failed to reassess the property in recent years. As a result, when they apply the per square foot construction cost mandated by the local insurance industry regulator, our property comes out as severely underinsured. We had purchased the property for $125,000 nearly 20 years ago and its value nowadays is below that amount owing to the economic recession.  (Of the $125,000 we paid, the appraisal back then estimated the structure value at $40,000 and the land at $100,000) We are filing a second appeal and are wondering if this is an industry practice.  Any suggestions?

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Last week I got a call from a writer based in Florida who is doing an article for the AARP Magazine (American Association of Retired People). The reporter was doing research to coordinate information that may be useful to folks whom may have the unfortunate experience of suffering through a catastrophic event that many of us in the insurance claims business have dealt with for our entire professional careers. The article, I am told, will be focused on how to prepare for and survive a natural disaster and other catastrophic events for this unique population of folks who are 55 years young and older.

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Last week, I was interviewed by Deirdre Fernandes  who covers the insurance industry for the Boston Globe. Her story   Pricey car insurance policies test consumers     discussed how more policyholders were likely to shop around for both home and auto insurance after the brutal winter left many homeowners disillusioned with their claim settlements and the coverage increases the insurance firms are trying to push through. What’s amazing is how few homeowners shop for the best rates. We handled many winter storm claims in and around Boston and I can tell you many of our clients are now shopping for new policies due to the push back and negative experience they had with insurers some had been paying premiums to for many years. In many cases, these insurers failed their moment of truth. Instead of trying to make their policyholders whole, their adjusters instead looked for technical loopholes to minimize the payouts. The policyholder will have the last say in the matter when they walk away and look for a new carrier.

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The end of November brings two significant events. The first is a full court press for the start of the holiday season and the second is the end of the official Atlantic hurricane season. Regarding the former let’s hope it is a good one. Things are looking good as the U.S. stock market continues its upward trajectory and despite reports from the financial sector that 25% of some of the world’s largest economies are in a recession, (some even facing deflation) the U.S. economy continues to grow with the additional good news of little threat of inflation for the homeland. And love those falling fuel prices! 
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With Super Storm Sandy’s anniversary at hand, not surprisingly, the national media is running a lot of stories on this Frankenstorm Halloween weather event. Having been there with our firm’s troops, we can bear witness to the awful devastation and impact on the communities and their residents lives from Sandy’s furry.
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