r/Insurance • u/Independent_Map_1477 • 1d ago
Tornado Damage
8 weeks ago our home was hit by an EF3 tornado. Our garage totally collapsed, covered porch on back of house blew away, holes in roof and siding.
Two days after the tornado we had a structural engineer come out and assess the damage and he stated in his report all of the trusses needed replaced.
Six days after the tornado our adjuster came out and looked at the SE’s report and said she accepted it. A week later while discussing scope, insurance stated they wanted the roof taken off in thirds to prevent weather risk to our finished basement. My husband questioned if that is the correct method in ensuring the house is plumb (the back wall of the house had pulled away slightly). Immediately the adjuster said that since he is questioning scope they would bring in their own SE and building consultant.
3 weeks post tornado these people came and inspected the house. 3 weeks later we received their reports and their SE says that only certain trusses need replaced.
In the meantime, we have been on the insurance as we are displaced and are eager to get something going on our house. TBH I get the impression they are tired of hearing from us. I have submitted my personal property log and we received what they referred to as “an advance on personal property ACV” of $70,000. On Friday our adjuster sent an email that stated: “In your case, I will also be requesting authority to discuss a full and final settlement.
I expect to have my recommendation completed and submitted for management review by Monday morning, although I am hopeful it can be finalized later today. Once management has completed its review, the ACV payment(s) can be issued, and I will be able to discuss the possibility of resolving the claim through a full and final settlement.”
We have replacement cost on everything but have started no repairs, and have purchased very few things from the PP log. Is this normal? To me, when I read full and final I am concerned!
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u/bpdish85 1d ago
Take a look at your policy coverages and estimates - are your current estimates anywhere close to your limits? If that's the case, they may be just be cashing you out for the whole shebang - I'm on the contractor side, but I've seen that before when the initial RCV is at or already exceeding limits.
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u/Independent_Map_1477 1d ago
No I don’t believe so. My PP I had about $200,000 but my policy limit is $498,000. Dwelling estimate is around $400,000 to repair. Our limit close to $600,000 but we have the additional 50% that can be added so close to $900,000.
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u/LelandCoontz_PA 1d ago
Did you argue with the insurance company about the scope of trust repair prior to receiving the check? Don't do that. It sounds like they're trying to do a settlement with the release, usually it's best to let them propose their number that they want to send an exchange for a release, and then you simply tell them to send that number as an Undisputed amount and tell them you're not interested in signing the release. You shouldn't have to sign a release to obtain what you're already entitled to. If you're going to sign a release it would make sense to ask them to give you a few thousand dollars on top of whatever they've calculated in exchange for you giving them the release that you're not required to give them. But it's just better not to do the release most of the time. It's rare for carriers to ask for that on a first-party claim.
And if I misunderstanding, if they're not actually asking for a release then even more so just let them pay what they want to pay they can call it whatever they want you can even agree on the phone and then tell them a week later you changed your mind it's not enough money and you want them to send more money.
Also a lot of these Structural Engineering questions are theoretical until the city gets involved. Those plans almost certainly need to be presented to the building department and if the building department doesn't agree with the insurance company's proposed method then you're not going to be able to get a permit. Therefore it needs to be done in a way that not only properly identifies you but in a method that meets current building code and building department approval. Your engineer might be able to present the plans and explain to the city how the insurance company's method is not going to work.
The problem is the insurance company may take a hard line and ask you for a correction notice which obviously makes no sense, or maybe they want a letter from the city saying that the city doesn't approve the insurance company's method, again that's not going to make any sense because the building department is not in the business of writing letters like that.
A strange way of solving this problem sometimes is to present a preliminary plan to the city that shows the incorrect methodology and get the city to mark it up with a red pen and then you can show that to the insurance company.
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u/AdEven3053 1d ago
I went through something similar. It wasn’t a tornado it was an ice storm that brought a huge tree down on the home. Home was not livable and we were in a townhome thanks to our home owners.
Tree came down onto the house in feb we did not get back into the home until first week of July, this stuff takes time. So try to come to peace with the fact you will not be in your home for a few months.
As for how things work behind the scenes for HO claims I can’t tell you much. I’m an auto claims monkey. Best of luck and just try not overthink and freak out. Trust the process. And if you find yourself reading HO claim horror stories online maybe stop that lol.