There have been an increasing number of severe storms and natural disasters that have struck Texas and the surrounding states this year. The cause of these storms is anybody’s guess, but one thing is certain – insurance companies will bear the brunt of the costs associated with the cleanup and rebuilding of damaged homes and businesses.
If you or your loved ones have been the victim of any of these recent storms, there are a few steps you can take to maximize your recovery. The first step is to locate a copy of your insurance policy, or request a replacement copy from your agent or broker, and review it to determine if there are any deadlines or requirements you need to comply with to recover under the policy. Next, you should provide written notice of the damage to your insurance company at the address listed in the policy. Once you have taken these two steps, you will need to collect further information regarding the damage.
If possible, take photographs or videotape the damage and try to make notes about the purported cause of the damage because your policy may provide coverage for damages related to fallen trees or other debris, but not damages resulting from wind or rain. Prepare an inventory of your damaged property and check with your agent or broker to request forms or other documentation that may be required by your insurance company when submitting a claim. In addition, make temporary repairs and/or remove debris in order to prevent injury or further damage to the property. After completing these steps, you can begin the process of permanently repairing or replacing the damaged property.
Before you begin any permanent repairs, check with your insurance agent or broker to determine if advance approval is needed for any expenses. As you incur expenses, be sure to keep receipts, including receipts related to any additional living expenses if you cannot stay in your home. If your business was damaged, be sure to document any period in which you were unable to operate because you may be entitled to additional economic damages, such as lost income, related to this business interruption. Furthermore, be sure to keep good notes of any communications with your insurance company or other persons you talk to about the damage to your property, including but not limited to the name and title of the person you talked to and the date and time of your conversations. These notes will be a tremendous asset if there are ever any disputes with your insurance company.
Finally, after completing the repairs to your home or business, submit a proof of loss and any other documents required by your policy in order to obtain coverage and full payment from your insurance company. Be sure to review the checks or any other written correspondence from your insurance company to determine if there is any language releasing or giving up your rights to any further recovery pertaining to your claim. Discuss any such language with your insurance agent/broker to the extent you have any questions. If you need help with your claim, do not hesitate to contact a lawyer. If you need assistance but cannot afford a lawyer, there are legal aid organizations that may be able to help you.
Friday, May 16, 2008
Wednesday, May 14, 2008
ALLSTATE ENTERS INTO $71 MILLION SETTLEMENT WITH STATE OF TEXAS
On Monday, the Texas Department of Insurance (“TDI”) announced that it has entered into a $71.3 million settlement with the second largest home insurer in Texas, Allstate Texas Lloyd’s Insurance (“Allstate”). The investigation by TDI arose out of allegations that Allstate overcharged policyholders for homeowner’s insurance policies dating back to 2004.
As a result of this settlement, Allstate will issue $71.3 million in refunds, credits and rate reductions to Texas customers. Homeowners who purchased new or renewal policies between December 1, 2004 and April 23, 2006, will be entitled to refunds totaling almost $37 million. Allstate also agreed to credit or refund policyholders 3 percent for policies written between August 20, 2007 and June 1, 2008, and to reduce homeowners rates for Allstate customers by 3 percent statewide for new and renewal policies written for one year beginning on June 2, 2008. Finally, Allstate agreed not to increase homeowner premiums for that same one-year period, absent “extraordinary and unforeseen circumstances.” TDI estimates that this settlement could affect as many as 700,000 policyholders due to the fact that Allstate covers nearly 15 percent of the Texas market.
Former policyholders who are eligible for the refunds described herein should receive checks directly from Allstate. Current eligible policyholders should receive refund checks or credits on their policies. All refunds and checks are to be issued no later than November 1, 2008.
It should be noted that this settlement does not include policies issued by Allstate Fire and Casualty Insurance Company.
As a result of this settlement, Allstate will issue $71.3 million in refunds, credits and rate reductions to Texas customers. Homeowners who purchased new or renewal policies between December 1, 2004 and April 23, 2006, will be entitled to refunds totaling almost $37 million. Allstate also agreed to credit or refund policyholders 3 percent for policies written between August 20, 2007 and June 1, 2008, and to reduce homeowners rates for Allstate customers by 3 percent statewide for new and renewal policies written for one year beginning on June 2, 2008. Finally, Allstate agreed not to increase homeowner premiums for that same one-year period, absent “extraordinary and unforeseen circumstances.” TDI estimates that this settlement could affect as many as 700,000 policyholders due to the fact that Allstate covers nearly 15 percent of the Texas market.
Former policyholders who are eligible for the refunds described herein should receive checks directly from Allstate. Current eligible policyholders should receive refund checks or credits on their policies. All refunds and checks are to be issued no later than November 1, 2008.
It should be noted that this settlement does not include policies issued by Allstate Fire and Casualty Insurance Company.
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