JoeWatkinsLaw

When to Sue Your Insurance Company

2011-07-13T14:55:00.000-07:00

We always advise our clients to work through the claims process and obtain as much money possible on your own before having an attorney review your file for a potential lawsuit. Your insurance company will make an initial offer which is negotiable. If you feel the offer is unfair, you have every right to challenge it.

Once you believe you have gone as far as you can go yet you still believe you are being unfairly compensated, then seek legal advice. In my experiences we can usually tell a client after an initial meeting if we believe we can obtain more money on their behalf. In almost all of our lawsuits, we've been able to obtain significantly more money than the insurance company's "last, best offer" to the client.

You can expect to pay a contingent fee in the 40% range in a lawsuit against your insurance company. You will also be responsible for costs including expert fees out of whatever result might be obtained on your behalf. Understand that it is not a quick process but, litigation can be a productive, though last resort to obtain what you are owed.

Record Time For Denials

2011-07-08T18:14:00.000-07:00

People in Sierra Vista are already being told what's not covered before even seeing an adjuster! This may be a new speed record, even in Arizona. Do not take "no" without challenging any denial or refusal to pay. The fires were bad, the next few months may be worse!

Red Flag Issues: Ongoing Wildfire Claim Issues

2011-07-05T14:34:00.000-07:00

Our office has already been contacted by potential clients in the Sierra Vista fire losses. Some individuals are being told by claims adjusters their insurance policies were apparently "reformed" recently without their knowledge. Also, people are being told they need specific proof of ownership of their contents even though any such proof was destroyed in the fires.

These are huge "red flag" issues for anyone at the beginning stages of an insurance claim. An insurance policy is a contract. It cannot be changed without consent by both parties. If your insurance carrier tells you differently, get professional legal help!

Likewise, you can swear to the ownership of items destroyed in the fires without having specific "proof of ownership" such as receipts etc... Insurance carriers routinely intimidate customers out of millions of dollars in claims payments through misrepresentation and intimidation tactics. Don't be a victim! If you have any questions, please don't hesitate to call our offices at 520-882-9115.

The Monsoon Is Coming!

2011-06-27T13:39:00.000-07:00

Arizona has been through one of the worst fire seasons ever and it is still not over. It is easy in the heat of June to forget the flood and storm risks coming in July. The next event on the potential disaster horizon is the summer monsoon season.

Areas that have been damaged by wildfires are particularly susceptible to water damage from runoff. If you live anywhere near a floodplain or a wash you should consider buying federal flood insurance immediately. It takes 30 days for flood insurance to become effective. Your homeowners insurance will not cover flood damage including runoff, wash overflow or pooling in drainage basin areas.

FEMA's website can provide you with information on flood insurance as can your local insurance agent. It's important to get not only basic flood insurance which protects your residence but separate flood insurance for your contents, as well. Unlike homeowners insurance, flood insurance does not cover your contents unless you purchase it separately.

This is also a good time to check your roof, windows and door frames to make sure your home is in condition to withstand the monsoon storms. If you have any questions, call our office at 520-882-9115.

Wildfire Losses and Other Disasters

2011-06-22T14:56:00.000-07:00

Parts of Arizona are currently being ravaged by wildfires. Sierra Vista, towns throughout the White Mountain range and people living in eastern Arizona are all threatened by out-of-control wildfires.

Over 60 homes and a number of other businesses in southern Arizona have been burned along with dozens of properties in the White Mountains and eastern Arizona. Many people still don't know if their property has been destroyed because of the mandatory evacuations in these areas.

There are things everybody who has suffered property damage can do to help protect their rights throughout their insurance claims process. My office has put together a Wild Fire Insurance Claim Checklist which we will make available free of charge to anybody who requests one. Simply call 520-882-9115 to get your copy.

One thing anyone who has suffered a property claim should do immediately is to buy a notebook and began making a list of everything you had in the property. In addition to furniture, mentally go through each room and make a list of every item from what's hanging on the wall to closets, cupboards and medicine cabinets. Don't forget the garage or storage sheds! Once you have made a complete list, try to put an accurate date and condition note for each item listed.

At the outset of your claim, you should ask for alternative living expenses to pay for alternative housing and expenses while your home is being rebuilt. You're entitled to similar living conditions to what you lost in the fire. A hotel room or small apartment is not sufficient to replace the family home while rebuilding occurs.

Try to have a friend with you during each meeting with the insurance company representatives or contractors. Take notes! Remember, you have a right to choose your own contractors, as well. Use contractors with an established track record and reputation. Be wary of contractors recommended by your insurance company. Make sure to check them out thoroughly if you decide to use any contractor recommended by your insurance carrier.

You are entitled to have your property rebuilt or repaired to a pre-loss condition. If something can't be repaired to a pre-loss condition then it must be replaced. You can always question what the insurance company and its contractors are doing or recommending. You have a right to negotiate any aspect of your loss in question any deduction for depreciation taken by the insurance company.

Finally, if you feel you're being treated unfairly, get professional help. Call my office at 520-882-9115. Good luck and stay safe! Joe Watkins

2009-09-07T11:05:00.000-07:00

Insurance Is a Contact Sport

Fall is here and football is back! However, football is not the only contact sport this time of year. Many people have experienced summer storm damage resulting in insurance claims.

Remember, insurance, like football, can be a contact sport or, at least, an extremely adversarial endeavor.

Your insurance company does not want to pay full value for claims. You have a contract with your insurance company and you are entitled to everything that contract provides. This is a great time to go through your insurance policy and, if you're involved in an insurance claim, make sure you're getting everything you're entitled to.

JoeWatkinsLaw.com has a number of free podcasts which can help you get the most from your insurance claim. Ultimately, it is your responsibility to take charge of your claim. Take the time to educate yourself and be aggressive! Good luck!

Paper Trails

2009-08-10T10:36:00.000-07:00

A recent employment article on protecting employee rights raised an interesting question. How do you protect yourself when dealing with big businesses? The best way is to think like a big business.

Insurance companies keep a paper or electronic trail of every transaction, claim, complaint or communication with their customers. If you have an insurance claim, you need to do the same thing. From the very beginning of your claim, record every communication.

It is especially important to keep notes regarding telephone conversations with insurance company adjusters or employees. Keeping good notes also helps you establish a timeline in the event you ever need to seek legal help with your claim.

Your insurance company has a duty to resolve your claim both fairly and quickly. Sadly, this rarely happens. By keeping good notes and establishing a timeline you can prove that any delays in the claim process were caused by the company, not you.

Finally, if you ever have to file a complaint with your state Department of Insurance to protect your rights, your notes will be invaluable. Remember, insurance is a business and you need to work to protect your rights. A little bit of knowledge goes a long way.

Depreciation Traps

2009-07-24T10:04:00.000-07:00

Insurance companies love depreciation.

Depreciation is a loss of value to property because of age or obsolescence. In order for something to depreciate, it must actually lose value over time. Things like paint, roofs, fences and siding all depreciate. How much depends on how well you keep your property.
Insurance companies will pay damage to your property based on a depreciated amount. For instance, if you have a roof with a 20 year lifespan in a storm destroys it when it's 10 years old your insurance company will only pay you 50% of the value of the roof.
Sounds reasonable. It rarely is. If your property is well-maintained your depreciation is probably a fraction of what your insurance company wants to charge you. Also, insurance companies depreciate things such as demolition, debris removal and furniture moving on a regular basis. These are services which cannot be depreciated.
If you have a property loss, carefully review your insurance companies estimate of damages. Challenge any depreciation you think is unfair. Insurance companies save millions of dollars by wrongfully depreciating just about everything. Remember, never except the first estimate, always challenge the insurance companies numbers and, if the company cannot prove its numbers, don't take no for an answer. A little bit of knowledge goes a long way.

Summertime and Storm Damgage

2009-07-13T14:33:00.000-07:00

Summertime and storm damage go hand-in-hand. Thunderstorms, flooding, hurricanes and wind can all wreak havoc on your property. You need to be prepared.

This is a great time to read your insurance policy, photograph and record items in your home and make sure you get any insurance questions you have answered before a loss occurs.

Make sure you have adequate insurance. You need to have enough insurance to actually replace your home and property. This typically means that you will need more insurance than the market value of your property in the event your home is destroyed.

If you have a claim, report it to your insurance company immediately. If your claim involves water, get emergency help fast. Water claims turn into mold claims within 24 to 48 hours.

Don't let your insurance company delay your claim. Insist on prompt responses. Document every contact with your insurance company and its adjusters. Remember, you need to be your own best advocate.

Have a safe summer! If you need help with any aspect of an insurance claim go to JoeWatkinsLaw.com. A little bit of knowledge goes a long way.

2009-06-18T09:08:00.000-07:00

June 18, 2009

Yesterday we talked a little bit about how the insurance companies use the news, including bad news, to justify rate increases. Today, I'd like to talk a little bit about the commercials we see on television from the insurance industry.

We have all seen the TV commercials where your local adjuster not only sells you insurance but, immediately takes care of your claim when bad things happen. In reality, the insurance adjusters have little to no ability to resolve any accident or claim issues. Almost all insurance agents, including agents for State Farm, Allstate and many other big companies are not even company employees. They are independent contractors who sell insurance. Nothing more.

Some of the television commercials act as though the company is doing you a favor by hiring an attorney if you cause an accident and get sued. This is part of your insurance contract. They have to provide you with legal representation. This is one of the types of propaganda insurance companies years to convince you they're taking special care of you when they're really just complying with the contract of insurance you have bought and paid for.

We could talk for hours about this; however, it is much easier to simply take everything you hear from any insurance company with a very large grain of salt.

Insurance Propaganda

2009-06-17T15:46:00.000-07:00

Wednesday June 17, 2009

A recent round of newspaper articles and other media reporting claims that individuals are burning their automobiles and turning in false insurance claims in order to collect money because of the miserable state of the economy. Only three instances were cited where this may have actually been done. The articles went on to say that this will cost the insurance companies billions of dollars which the public will have to pay for through increased premiums.

This reminds me of the mold scare in the late 1990s which resulted in homeowners across the country having huge increases in their policy premiums because the insurance companies were theoretically going to be paying billions of dollars on mold claims. It never happened.

Once the insurance companies convinced the state regulators to allow increases of up to 60% for homeowners premiums, the companies then put exclusions into all of their policies eliminating any exposure to mold claims. Within two years the maximum amount most people could claim for mold was $5000 or less. Consequently, mold was one of the best things to ever happen to the insurance industry. Incidentally, the insurance companies never gave back the 60% increases.

Now the insurance companies are using the economy to justify rate increases because of alleged fraud. This goes to show that the insurance companies will use anything at any time, no matter how bad the economy is, or how much the rest of the country is suffering to increase their profits.

If you receive a premium increase for your automobile policy, go directly to your insurance agent and demand to know why. Remember, the insurance companies are not your good neighbor, they are not on your side and it is up to you to protect yourself.

Finally, don't believe what you read and do not believe what you see if an insurance company is sending the message.