Insurance not paying claim but other companies are for the exact same damages?

I live in a city that was flooded this summer and part of the preventative efforts was constructing this monstrous secondary dike (which turned out they didn't need). This dike was up to the second story of the homes that they put it against. It caused wall and windows to collapse and foundations to shift. I have flood and home owner insurance luckily my flood insurance paid for flood damages (anything the water touched) however my home owner insurance has denied my claim for the structural damages caused by the dike(garage wall collapsed, window shattered allowing part of the dike to sit in my living room, shifted support beams in basement, and all trees, retaining wall grass, fence all bull dozed). My neighbor same situation almost took his house out completely got paid for the damages caused by the dike he's with State Farm. A friend who didnt have flood insurance but had damages caused by the flood got paid for damages due to basement backing up with water(cut the electricity and sewage backed up due to flood) hes with USAA. My guy at FARMERS UNION is saying that they wont pay b/c it was "flood related" not flood damage b/c its not but "flood related". His advice was to wait the 3 or so years it will probably take to get a class action law suit going and try to collect from that. It seems to me that this can't be the say all in this matter. Shouldn't my insurance pay and if they want that money then they should be the ones to go after it? What steps do I take now? I still need a place to live with my family, now my property is completely destroyed and FARMERS UNION insurance could care less??? Whats the point of having insurance if they dont insure you??

3 Answers

  • Anonymous
    9 years ago
    Favorite Answer

    Should have gone with State Farm or USAA, apparently. I have USAA and they're awesome.

  • Jan
    Lv 6
    9 years ago

    First of all, you must ask for the full policy coverage in writing. Your policy may exempt coverage for a loss that other policies cover. My homeowners covers mold/mildew, albeit in a limited amount. Most policies exclude this coverage completely. If you find that it isn't expressly denied, then I would either contact a lawyer, or the insurance commissioner of your state. As with a previous hurricane in the Gulf region, there was an insurance company who routinely denied covered expenses as water damage, even though they had adjusters tell them it was wind damage. It wasn't until there were whistle blowers at the company that showed that the insurance comp. ignored the first findings and order the adjusters to find it as flood damage, did the truth come out.

    I would caution you about cashing any checks they have sent you for damage. Sometimes that means you have accepted their value of the loss, and you can't go after the company for more. Check with a lawyer about this. I have seen checks written both ways.

    Not all coverage is alike. I am a stickler for reading the fine print. I lived 1600 ft off Long Island Sound, and was thus interested in purchasing flood coverage. I owned a ranch with a full basement. I was quoted a fair price. It wasn't until I started asking the insurance agent LOTS of questions did I find how crappy the coverage was. No damage would be covered in my walkout basement. Any appliances, furnace, electrical panel in the basement wouldn't be covered. For me to have to collect a penny, the water would have to have been 10 ft deep to submerge my basement and reach the first floor. Then a certain area of land must be submerged before mine was covered. I don't remember the exact number, but it was like 3 acres of land. So even IF my house was flooded over the basement and it got in the upper floor, if at least 3 acres didn't flood contiguously to my house, then I would not get any coverage at all. I chose not to buy coverage. Even Hurricane Irene didn't flood my former house.

    ALWAYS read the fine print. The smaller the typeface, the more important it is to read it. If the insurance company is cheating you out of money you are owed, take them to the cleaners and make an example out of them.

    Source(s): Will never buy State Farm insurance. It is the principle of the thing.
  • It's all about the exact wording of the policy. You don't have the same policy as others, you have to live with the terms of YOUR policy.

    It seems to me that the city should be dealing with this cost sine their actions caused the loss. Ultimately, you need a lawyer, either to fight your own insurer, or to fight the city.

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