Returning home from a day trip in the early hours of the morning to water everywhere set the stage for a rare positive email from Becky, a retired high school English teacher living in Visalia with her husband. Both are 85 years young and received what can only be described as exceptional customer service.

“Your article about the disaster restoration company and its dishonest customer got our attention, in part because we recently had our own horrible experience with a burst water pipe, and were so fortunate with the high degree of service provided both by our homeowners insurance claims adjuster and the damage restoration company.

“Our water pressure regulator failed, causing a section of pipe to explode. Water pipes coming into most properties in our neighborhood are huge — 2-inch diameter — which means that pressure is very high and you must have a regulator. Testing your home’s water pressure is so important and easy. A gauge costs less than $20. Eighty psi or under is what you must have, we learned.

“After shutting the main water valve, we phoned homeowners claims and in less than 90 minutes, two angels arrived: our claims adjuster and the damage restoration supervisor with his crew. It was 3 in the morning!”

An unexpected suggestion

“Our house was inspected, lots of photos were taken and the supervisor was thorough and took plenty of time in explaining how they find water damage by using high-tech cameras which see moisture behind walls, and under the floor, to help avoid mold issues down the road.

“We signed a number of contracts and other documents after our adjuster gave her approval. This was all new to us — you don’t have busted water pipes every day, if ever, and who reads a homeowners insurance policy before a loss?”

“And then, something happened which was completely unexpected and made a reality out the TV commercials which tell you how wonderful it is to have this or that homeowners insurance.

“Our adjuster asked us to sit at the kitchen table, and in such a reassuring tone of voice, told us the following:

“Fortunately, water appears to have run for just a few hours, not days, but it is still going to be a real job in drying your home and preventing mold. The drying process requires using powerful fans, and possibly opening up certain walls, depending upon where the water settled. This means noise, a lot of noise and real inconvenience, with the crew coming in and out, removing furniture, carpets, anything that got wet and needs to be dried.

“Your insurance has a very good additional living expense provision, so you do not have to remain here while work is being done. I will help you pack what you need right now, and book you into a nice hotel downtown. In fact, I’ve already reserved your room. We will cover food and other related expenses during the time your home cannot safely be lived in.

“Mr. Beaver, at that time, I began to cry. Our adjuster truly was the angel we needed right at that moment. It took about three weeks to repair the damage, and we just could not be more satisfied with the way everyone dealt with us. We heard from the restoration company often and always did what they asked of us to help put things back to normal. I know that you hear more complaints than compliments, but I’ll bet our experience is the rule and not the exception.”

Staying involved in the process leads to a better outcome

“Dennis, this is a great story, and your readers had such a positive experience, in part, because they were involved in the restoration process,” commented Tampa-based Pete Consigli, a friend of this column and a national authority in restoration and damage repair.

“The property owner has an obligation to their loss. Never just turn it over to the company and walk away. You must be involved, in the loop. It is your home and you need to stay involved in the process, at whatever level you feel comfortable, to assure that your property is restored back to pre-loss condition,” he observes.

“This story also illustrated something that happens every day, but does not get the attention merited. And that’s the important role of claims adjusters at times like this.

“In the 35 years that I have been in this industry, your reader’s experience truly is the rule, and not the exception.

“The most successful claims adjusters will be good communicators and have compassion for the insured. And the same thing can be said for the restoration crew that comes to your house, just like with Becky, at 3 in the morning.”

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

The post ‘Water everywhere — and then two angels showed up’ appeared first on Dennis Beaver.

“Mr. Beaver, my parents — both in their 80s — have substantial lifetime pensions, no debt and a lot of money in savings accounts, so they do not need any additional income source. Recently, they attended a seminar aimed at older people, where a real estate broker talked up the advantages of becoming landlords.

“Brochures downplayed the age-related risks and made a big point of saying they wouldn’t need to hire a property manager and that tenants would be required by the lease to be responsible for all maintenance. As the landlord, all they would have to do was collect the rent.

“I know this is nonsense. Plus, regardless of age, my parents are not emotionally suited for the challenges of being landlords. I can picture them frozen with fear and inaction if something happened to the property that required immediate action, as I have seen a decline in their health and ability to deal with stress.

“I’ll bet there are a lot of older people who are getting the same pitch and could get themselves in legal hot water if they drink the Kool-Aid. My parents love your column, and I’m sure your advice would cause them to think this over seriously. Thanks, ‘Darren.'”

‘A loud cracking sound, and the house shook’

Darren’s fears about his parents becoming “frozen with inaction” was faced by two longtime readers, Cynthia and Mike, who phoned our office, upset with their landlord.

“Early this morning,” Cynthia said, “we were awoken by a loud cracking sound, and the house shook when a huge oak tree in our backyard came down on this house that we have been renting from Abe for over 10 years. He is in his mid-80s.

“We immediately notified him of what had happened, but instead of reacting like someone who was concerned, he emotionlessly said, ‘Well, I’ll see if I can reach my son in Alaska and ask him for help.’

“We replied, ‘No, you need to call your insurance company now and report this. We might need someplace to stay while the tree is removed and damage to the house, if any, is repaired.’

“It seemed that he did not understand the urgency. Abe has always been a thoughtful, caring, ‘hands-on’ landlord, but age and infirmity have impaired his ability to do everything himself, and he rejected our suggestion of hiring a property manager as ‘too expensive.’

“Can you help us?”

I phoned Abe, asked him for the phone numbers of his son and insurance agent and got them together on a conference call. The agent immediately took charge and saw to it that a claim was started with the carrier.

For some older adults, becoming a landlord is a bad idea

Over the decades that I have practiced law, anytime there was a significant landlord/tenant problem, often the owner’s age, a strong sense of moral right and wrong combined with a lack of knowing their legal obligations and a refusal to retain a property manager — costing about 10% of the monthly rent — became a toxic cocktail.

Sometimes it came down to real cognitive challenges, but just as often, an older property owner frustrated with tenants who were months behind on the rent refused to hire an attorney — “oh, that costs money!” I heard repeatedly.

They would resort to turning off the water or electricity and wind up being sued by their tenants.

I ran these issues by Jon Anthony Dolan of Los Angeles-based Dolan & Knight Property Management. He has been a friend of this column for years and is always a source of good, common-sense advice.

I asked Dolan, “In your experience, are there more risks for older adults in becoming landlords?”

“Yes, there are,” he replied. “Not just because of age itself, as many older adults are good landlords, but it is so important — especially for older people — to have objective help in evaluating the downside risk of acquiring rental property.”

He said they should consider:

• Their financial situation. Do they need to invest in a rental at their age?

• Their ability to handle the myriad day-to-day tasks involved, such as rent collection, maintenance and legal responsibilities.

• Their capacity to deal with difficult tenants. Sometimes behavior can border on elder abuse.

• Their cognitive impairment and health challenges can drive up the cost of rental ownership.

• Their physical limitations. While a young person might be able to handle minor repairs or maintenance, impaired balance and mobility issues can make it impossible for an older person to personally tackle the things that come up with any home.

Additional realities to consider
Dolan pointed out factors that, if overlooked, can prove costly:

• Liquidity. If unexpected financial needs arise, needing to sell quickly could mean a large loss.

• Decision-making. Even with a property manager, there are decisions that must be made. Do they have that cognitive ability?

• Time. Real estate is usually a long-term investment, so a person’s life expectancy can be a real issue.

Dolan concluded our interview with this cautionary remark: “The older we are, the more cautious we should be, especially with our money.”

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post A Cautionary Tale: Why Older Adults Should Think Twice About Being Landlords appeared first on Dennis Beaver.

The proper smoke and carbon monoxide (CO) alarms can mean the difference between having a home to live in and employees not out of a job because the boss wasn’t one of the 80% of deaths from home fires that occur between the hours of 11 p.m. to 7 a.m.

“Anna” and “Danny” were not one of those statistics because they had a CO detector that went off early in the morning of Dec. 28, 2021.

“It was a smoldering, ceiling fire in our attic with little smoke, but which created carbon monoxide. Our Kidde CO detector woke us from a deep sleep, giving us time to call 911. Only a small bathroom and laundry area off of the kitchen were damaged,” Danny said.

“We would appreciate any guidance you can offer so we don’t do the wrong things with our insurance claim.”

Fire? What not to do

I ran Danny’s important question by friends of this column, Los Angeles-based retired homeowners claims adjuster Rachel Greenberg, and insurance broker/expert witness in insurance coverage issues, Karl Susman.

Rachel: Delay in calling 911 when you smell smoke or suspect there is a fire.

Consequences: This raises a suspicion of arson. Policyholders have a duty to mitigate (reduce) damages under the terms of the policy.

Karl: In addition to phoning 911, immediately report the claim to your insurance carrier. Delay in both instances makes the entire claim suspect and may affect payment even if legitimate.

Rachel: Fail to promptly begin making an inventory of what was destroyed or damaged. Be a hero and start co-it-yourself repairs.

Consequences: Homeowners policies generally provide replacement coverage, but you’ve got to know what was lost. Unless you have date-stamped photos–showing the structure and contents of closets and drawers – the further away from the incident, your memory will suffer and you will not be paid for what you can’t prove was in your home.

Karl: By starting to fix things yourself, you might not realize that the damage is far more extensive. If you do it on your own without approval of the claims rep, chances are that you may not be properly reimbursed.

These Things Are Giant Red Flags

Rachel: Have a bad attitude towards the adjusters!

Consequences: They might drag their feet instead of moving things along quicker. This is a time to be patient and cooperative. Their job is to help you. They aren’t your enemy!

Being a jerk, overly anxious and pushy will slow thing down. If you need that money and your need it NOW, there is usually a problem. Adjusters think, “Someone is in a lot of debt and sees the insurance claim as a quick way to get some cash to pay it off.”

Karl: How you react at the scene is important. Carriers receive copies of first responders’ reports. All of that information is passed on to the adjuster. They are trained to sniff out fraud, especially inflating what was lost. If a homeowner is pushy, this will make the adjuster suspicious – and a credit check will be done.

Don’t do it. Don’t pad the list of items destroyed. If caught, in some states, the insurance company can deny the entire claim.

Rachel: Abuse the “Temporary Living Expenses” section of your insurance policy by booking the Presidential Suite at the Ritz Carlton and for breakfast each day have room service bring caviar!

Consequences: “Can I stay wherever I want?” is a frequently asked question. You need to stay somewhere that is similar to where you were. This does not mean a million dollar mansion at Malibu unless that’s where you were living before the loss.

Approval from your adjuster — before renting an apartment or checking into a very expensive hotel — is required or you could face a denial of payments under that section of your policy. Often insurance companies have pre-negotiated room rates with very nice properties, so it is always important to give your adjuster a chance to find lodgings for you.

Karl: You will not be rewarded for extravagant expenses. If you did not order the most expensive item on the menu every day before the fire, you are not going to be reimbursed for doing so after it. “Is this how you and your family normally eat?” an adjuster will ask if presented with a mind-numbing bill for dining at fancy restaurants.

Thinking: “I have been paying my premiums for 20 years and you guys owe this to me! Now is my chance to get my money’s worth,” is not the way insurance works.

It is so important to use common sense before a fire or other loss. With expensive items of jewelry, clothing, anything of unusual value, let your agent know about it, and obtain an appraisal and possibly a rider for it.

Concluding our discussion, both Rachel and Karl stressed this final point:

“Don’t embellish, lie, rush, assume or guess. Do not create an adversarial relationship with your adjuster who is not your enemy!”

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

The post After a fire loss – dealing with your insurance company appeared first on Dennis Beaver.

A recent article dealt with the consequences of rejecting advice from professional tree trimmers to eliminate the chance of a giant, 75-foot tall eucalyptus tree causing significant property damage or death when it falls.

Fall it did in early September 2017, crashing onto a neighbor’s corral and injuring their horse. The tree owners turned the incident over to Farmers Insurance and another reason why claims adjusters have a reputation for unethical behavior would soon be evident.

Even when presented with multiple examples of their insured’s dishonesty, evasive behavior and being aware of the danger, adjuster Lindsay McCarty and supervisor Richard Osbun incredibly stated, “Our insured denied ever being told the tree was dangerous. We have to believe them. Claim denied.”

Among the many comments readers submitted, one was stunning. “Richard,” a retired Farmers adjuster stated, “When you have credible evidence that your insured are dishonest, you can’t believe them! This claim obviously should have been paid. Management is responsible for such disturbing, unethical behavior.”

Pay claims and you’ll never get ahead

Salt Lake City attorney Randall K. Edwards writes extensively on this topic and as a young lawyer worked in insurance defense, seeing first hand “how morally low claims adjusters can sink.” We asked him, “Do insurance companies seek out dishonest people to work for them?”

“I don’t think so,” he replied. “After all, who wants someone who is dishonest working for you? It’s more subtle than that. In my experience, dishonest, unethical adjusters are made, not born. Most new employees are simply trying to figure out how best to do their jobs and then move up in the company,” he stated.
The term “grooming” came to mind, and Edwards sees it that way also.

“Adjusters are groomed to make ethical compromises, which come gradually. This is how to hang onto your job and move ahead. Your goal is to protect the assets of your multi-billion dollar employer and cheating the insured or an injured party out of compensation is expected and rewarded.

“Soon, new adjusters realize that by paying claims they will never get ahead. As an adjuster’s supervisor got into that position by the same process, it becomes the corporate culture. Excuses to deny payment are manufactured, often by:

(1) Intentionally misreading the insured’s policy so that coverage is denied;

(2) Arguing that certain statutes do not apply;

(3) Dragging a case out until the insured or claimant simply gives up and accepts an unreasonable, low offer because they need the money and are stressed out.

(4) Just like your tree example with Farmers, adjusters will often reject clear evidence of fault, saving the company money, and their insured then winds up being sued by the injured party.

Adjuster and insurance company lawyers are caught in the middle

Despite all the comforting slogans; Allstate’s “You’re in good hands,” Farmers, “We know a thing or two because we’ve seen a thing or two,” or State Farm’s, “Like a good neighbor, State Farm is there,” Edwards says:

“The corporate culture of non-payment, fighting with policyholders over coverage and rewarding adjusters for trying to find loopholes is self-defeating. The public doesn’t trust their own insurance company to do right by them, and certainly doesn’t trust the insurance company of someone who has injured them to step up and do the right thing. Meanwhile, the adjuster gets caught in the middle.

“You can’t get ahead in the company without trying your best to pay out as little as possible, while at the same time trying to hang onto your sense of decency and self-worth,” he observes and has harsh words for defense attorneys.

“It’s nasty. In order to keep the insurance company sending them cases, insurance defense attorneys are often in a direct conflict of interest with the insured policyholders who have been sued and to whom they owe their primary duty of loyalty. This often results in poor legal representation for the insured policyholder.”

“I am aware of many lawyers and adjusters who finally had to decide between selling their souls and dignity and getting out of the insurance game,” he underscores.

“A necessary evil”

So, are there any “good” companies out there? Edwards isn’t optimistic: “Unethical behavior as a vital part of the insurance industry’s culture, the fact of the matter is that exceptions to this rule are few and far between, in my experience.

Even the best insurance companies can be thrown into the category of ‘the best of a bad lot,’ in my view. As things stand right now, insurance is a necessary Evil. And Evil, necessary or not is still Evil.”

And the takeaway from our story? No matter how friendly, adjusters aren’t your friend.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

The post Are unethical claims adjusters born that way or made? appeared first on Dennis Beaver.

“The fires and storms of 2022 was one of the most costly years to the insurance industry, leading to the failure of several companies across the country. Unlike, ‘What happens in Vegas stays in Vegas,’ where property insurance is concerned, what happens anywhere across the country has the potential to impact the rates that we all pay for coverage,” observes Los Angeles-based insurance broker Karl Susman.

A longtime friend of this column, Susman has been an insurance broker for over 30 years, holds a master’s degree in insurance management from Columbia University and serves as an expert witness in lawsuits involving coverage and agent mal-practice issues.

Rates Increasing, some Important Coverages being Trimmed

“Dennis, for your readers who will acquire either a new or renewed homeowners or a commercial policy in 2023, they have an important obligation to themselves: It is being aware of and understanding the coverages they are paying for. This is a time to carefully – not just read, but study – your insurance policy, as some coverages that were fairly automatic may no longer be included as standard in your policy.”

Susman listed several important coverages you need to considser:

(1) Guest Medical Coverage:

Both your homeowners and business policy absolutely should have Guest Medical No-Fault coverage. This will pay regardless of why a guest in your home or business gets hurt and incurs medical bills: No lawsuits, no questions asked, their bills are paid.

He underscores, “Take the maximum coverage amount you can obtain as the cost per year will be less than two drinks at Starbucks.”

(2) Event Insurance – Wedding Cancellation Coverage

What if I am planning on having a large event at my home or business?

“Event Insurance Coverage is a wise – and inexpensive investmen – $200-$300 that helps protect you from liability in case someone is injured or damages the venue’s property. It can also include liability for liquor should you be serving.

“Most insurers also offer cancellation coverage for weddings, which reimburses non-refundable lost deposits if you must cancel or postpone for reasons beyond your control, but not for ‘cold feet.’ Coverage for presents, photos, a wedding dress, tuxedos, and other items is also obtainable.”

(3) Do You Have Adequate Coverage for Jewelry?

“Unfortunately, most people are unaware that in most policies, jewelry is covered up to $1,500, no matter where it is located. However, it is possible to obtain a jewelry rider that covers, for example, expensive items in a safe deposit box that you take out for special occasions. It is extremely important to contact your agent or broker to let them know you’re taking them out of the vault to be worn.”

Also, from the tales of bewildered readers who have had the contents of their safe deposit box vanish, be aware that contents are not insured by the financial institution or FDIC. And your bank will disclaim all responsibility.

Drugs, Minors, Illegal Substances or Acts

“Keep in mind,” Susman notes, “That as a general rule, illegal substances or intentional acts of wrongdoing are not covered by insurance. If someone in your family is out ‘Breaking Bad’ do not expect your insurance company to step in and protect you.

“Marijuana is a drug, legal or not, and if you’re providing it to your guests, you’re assuming a risk that your insurance company will refuse coverage for if they get high, damage your things or leave and damage property of others or people are injured.

“If you are unsure about the legalities of ownership or use of personal firearms, check with a local office of the ATF – Alcohol, Tobacco, Firearms. Don’t look for insurance to bail you out of something that is illegal.”

Practical Suggestions to Avoid Cancellation

“To save on premiums, insurance is a product you must try to avoid using, and you do not want to be cancelled for something you failed to do which resulted in a huge claim. So, offer to pay for Uber or Lyft if your guests have had too much to drink.

“You don’t want anyone driving intoxicated for their safety and of others as well as the potential for you being held responsible if they became inebriated on your premises. It’s also a good idea and very considerate to have non-alcoholic beverages and mock-tails on hand for people to be able to stay sober while avoiding the social stigma of not drinking with the crowd.”

Susman was quick to underscore the importance of dietary restrictions. “If you are informed of peanut allergies and choose to ignore the warning, realize that a single peanut could send a guest into anaphylactic shock and a lawsuit is likely to result.”

Don’t Miss a Payment – Do What They Recommend

Most of us have been a day late or even missed a premium payment, received a lapse notice, quickly made it up and were reinstated. “Do NOT expect that to happen in 2023,” Susman warns. “Regardless of the reason you missed that payment.”

It is no secret that companies are trying to lower their exposure to risk, given the huge losses in 2022. Fewer payment plans are available, meaning you’ve got to write a large check at once versus making payments over time. So, if you can’t pay in full, for many people this means no insurance.

Additionally, as several of my readers have commented, letters giving them specific instructions on how to make a loss less likely are being received from their insurance carriers, often concerning trees and branches overhanging roofs.

“This increases the risk of a fire reaching your home as well as damage to the roof itself from the limbs and foliage. Therefore, see to it that this is remedied immediately or you risk cancellation of your policy.”

Susman’s advice? “Do what they say. It is common sense. Don’t be a cheapskate.”

Increase Your Limits

Susman concluded our interview with “peace of mind” advice.

“Given the increased costs of everything, it is important to have adequate limits. You can easily call your agent and say, ‘Increase my coverage since things are costing more money and taking longer to be repaired.’ It is the safest move you can make right now in world of insurance uncertainty.”

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

The post Big changes coming in 2023 for business and homeowners insurance appeared first on Dennis Beaver.

“Mr. Beaver, I am 78 and my fiancee is 79,” Connie’s e-mail began. “He has gotten himself into a legal mess. Can I get some advice for him on saving his house?

Finding love and companionship at any age is what life should be all about, but something about Connie’s e-mail seemed odd. Why was it from her, and not from her 79-year-old future husband? Why did she want to discuss this with me and not him?

I e-mailed right back: “I’m here at the office, call now.”

Within seconds, the phone rang and it was Connie. I would soon discover that my hunch of something being odd was correct.

“Louis and his son were in a little accident last year, and it has us both concerned,” she began.

“What kind of an accident was it? How old is his son?” I inquired.

“Well, his boy is 50. They got hurt fixing an old building. His son spent two months in the hospital. But they’re fine now. Louis is worried about being sued — by his son,” she added.

“Can you put him on the phone?” I asked.

“Sure, but you’re going to wind up yelling at him, because he can’t come to the point,” Connie replied.

“Put him on, anyway,” I insisted.

Our conversation started out with great difficulty and only got worse as he was not only a poor historian, but revealed enormous issues with basic judgment. But as I had the time, I just let him talk and within minutes, nearly fell out of my chair picturing what had happened to him and his son. Here’s a summary of what he told me:

“I was an insurance broker, owned my own building, and retired about 20 years ago. The office has remained empty. I began getting some really high offers for it in 2005 — but I hung out for more — and then the market just crashed, as you know,” he related.

“The roof was rotted, so last year, my son and I decided to do our own roof repairs. He drives a taxi but spent one summer when he was in high school working for a roofer, so I figured we could do a good job ourselves and save a bunch of money. I hired him to work on the roof with me and pay him what he would lose in not driving the cab for two weeks. I didn’t think there was that much to replacing a roof,” he added.

“Sonny is kind of a big boy, always had a weight problem, and must be about 350 pounds, but I’m pretty skinny,” he proudly added.

“We were tearing shingles off and everything was going really well, when, suddenly, a big hole opened up where my boy was standing. I grabbed him, but we both fell straight through to the floor.

“He broke both legs, one arm, and was nearly scalped by something in the attic, but after two months in the hospital, made a good recovery. His wife’s medical insurance paid some of the bills, but I got a letter from a lawyer asking about my workers compensation insurance and threatening to sue me. That’s why we’re calling — how can I protect my assets?” Certainly Louis would keep the building insured, right? Wrong.

“It’s kind of expensive having insurance on a vacant building, and I didn’t want to spend the money.”

Did he have any form of business insurance? Something? Anything? And why was it important to know?

The answer is that by hiring his son for help with the roof, an employer-employee relationship might have created. This requires workers compensation insurance to cover any injuries, or to be financially strong enough to be self-insured.

Did Louis know that?

“Sure did, but who’d ever think your son would sue you?” he replied.

Hospital bills were well over $300,000.

There were in fact several letters that Louis had received, from insurance companies, hospital collections offices, and the workers compensation attorney hired by his son’s family. Were he wealthy, it might be possible to negotiate with all the players in this developing drama. I asked him what he owns.

“That building, my house worth maybe $100,000, Social Security, and about $20,000 in the bank — that’s all,” he replied.

“Then, Louis, you need to see a lawyer — possibly, three lawyers:

“A workers compensation attorney who represents business owners, and a bankruptcy attorney as soon as possible, as you are going to be sued, by whom is the question. Your son might file for workers compensation benefits, and if it is found that he qualifies, the Uninsured Employers Fund could easily get after you as well to recover any funds they pay for your son’s treatment rehabilitation or permanent injury.

“Your need to consult with a family law attorney to understand your rights, and especially what happens if you and Connie get married — what risks does she face if there are judgments against you. Believe me, this is as serious as a heart attack, Louis,” I stressed.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

The post Don’t marry this guy appeared first on Dennis Beaver.


If you are shopping for homeowners insurance–or about to renew your policy with Farmers–you may wish to reconsider after reading our story.

With 138 million dollars spent on television advertising in 2016, who hasn’t seen actor J.K. Simmons, playing the role of Professor Nathaniel Burke at Farmers University, telling his students, “We know a thing or two because we’ve seen a thing or two. Seen it. Covered it.”

Their entertaining commercials give the impression that Farmers cares about its customers and goes out of its way to pay their claims. Reality can be quite another matter.

Sept. 3, storm

On Sept. 3 a storm accompanied by high winds fed by monsoonal moisture– typical for late summer–caused flooding and wind-related property damage in much of Southern and Central California.

For readers “Sharon and Bill” it was of special interest for two reasons:

1. They operate a tree trimming business. “Our phones rang constantly, with many calls from people who sustained damage, earlier rejecting our advice to get their trees trimmed,” Bill stated.

2. Ironically, their next-door neighbors, “Pete and Cindy” had a monster, 75-foot tall Eucalyptus tree which split apart and came crashing down onto our readers’ corral which housed 10-year-old horse “Charlie Boy” causing serious injuries and high vet bills.

“Giant Eucalyptus drop heavy branches, with or without high winds, and are known as Widow Makers. My husband and I advised them two years earlier of the risk, explaining that when, not if it happens, there will be significant property damage or someone could get killed.

We offered to do it for a discounted price, but we were waved off.”

After the tree fell, Pete and Cindy hired our readers to cart away the massive branches and trim the tree, paying $600 with a balance of $300 which, now they refuse to pay.

Would not reveal homeowners insurance information

Insurance companies require cooperation, starting with providing policy information to someone who may have a claim. Pete and Cindy asked for and were given our reader’s homeowners information, and when “Now, please tell us who you are insured with,” they hung up the phone.

Yes, ignore the problem and it goes away?

Later the same day, a letter was hand served on them–and a copy mailed — asking to be put in touch with their insurance company. Cindy yelled at the process server, “We don’t own the house anymore,” which was a lie. They denied ever receiving the letters.

This couple were the king and queen of ignorance and dishonesty.

The law

“When you are on notice of a dangerous condition on your property and do not remedy it, that’s negligence,” Salt Lake City attorney and author, Randall K. Edwards observes, adding, “Insurance typically pays covered claims due to negligence, and when you know that you were negligent, the most idiotic thing you can do is to tell your insurance company that you were unaware of the problem.

“Even when adjusters think their insured is lying, in order to avoid paying for the damage caused – saving the company money — they might say, ‘We believe our insured,’ and deny the claim. You then wind up getting sued. 

So, by telling the truth you will be protected by the coverage you’ve paid for.”

A nice claims adjuster working for an ethically challenged company

Farmers’ claims adjuster Lindsay McCarty of Grand Rapids, Michigan, was assigned to the claim. She is one of the nicest claims people I’ve ever spoken with and needs to find a job at an ethical company. She interviewed our readers, and the process server who was told, “We don’t own the house any longer.”

In depth, she went into the advice provided two years earlier to have the tree trimmed, and was shocked – you could hear it in her voice —to learn that her insured refused to pay the balance of the bill for removing the fallen tree, telling our readers that she – Lindsay – told them to ask for a refund of the $600 paid!

Richard Osbun is her supervisor and is equally nice but with an agenda. Despite the trail of lies, Osbun stated, “We have to believe our insured. They deny ever being told that their tree was dangerous and needed trimming. Claim rejected.”

“Nonsense!” insists attorney Edwards. “Adjusters routinely disbelieve their own insured when given evidence of mistake or deceit. Here, with a stack of lies and evasive behavior, no experienced adjuster would ever believe the couple.”

Does Farmers Insurance have a culture of unjustified denials? You decide but remember that if sued, your good name will be at risk.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

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While insurance agents are very good at suggesting the kinds of coverage we should have for our homes and autos, have you ever spoken to one who personally faced the consequences of wildfires or other natural disasters? If so, what impact do you think this has had on the advice provided to their clients?

Meet State Farm agent Irene Henry

Chicago native Irene Henry was in law school when approached by State Farm insurance and offered a job as an agent. “I wanted to become a lawyer to help people, and realized that as an insurance agent I could do that as well, and it seemed a perfect fit for my personality, so after graduation, I took the job and haven’t looked back.”

In 1987 she opened her own office in Santa Barbara, later moving to Ventura, and has personally been through a number of fires including the December 2017 Thomas Fire which ravaged Ventura and Santa Barbara counties.

“It was a massive wildfire, the largest in California history. I know our family knows from personal experience what it means to have been evacuated,” Henry states in a tone of voice that, even months later, still rings of fear, adding, “Most insurance agents do not experience these things, but they bring you closer to your clients, because you truly understand what they face. Having been there yourself, you are better able to provide practical advice.”

Having adequate limits of coverage is absolutely critical

Henry offers money-saving advice to renters.

“Insurance sold by most companies which covers a renter’s belongings is an incredible bargain. $25,000 limits costs as little as $15 a month. But studies show that most people have personal property which, to replace, would cost well over $30,000, so having adequate limits of coverage to protect your family in the event of a total loss is absolutely critical, offering peace of mind, and compensation to help you recover, including living expenses.”

And for condominium owners?

“If you are buying your home and making payments — including for a condominium — homeowners/condominium insurance is required. Having adequate limits of coverage in place makes this a very important purchase.”

Smartphone photos and videos prove what you owned

So you’ve purchased good coverage limits, but in the event of a total loss, how do you prove what was in the home? Henry answers that question with two words: Smartphone inventory.

“Preparing for a loss means taking your smartphone, performing a detailed photographic inventory of all the contents of each room — including inside of drawers and closets – and coming up with a total of what it would cost to buy new. By saving all of this it to the cloud, this makes for a much smoother claim process.”

Preparation = having a to-go box

Henry and her family had to leave their home three times due to fires and the risk of landslide. “We have one to-go box which contains all important personal information, such as passports, insurance documents, auto registration, medication, and so on. It is in a closet, ready to-go at a moment’s notice,” she explained.

“And, we have another box which contains food, water, basic essentials, including a non-electric can opener, we can grab and out the door we go. Having these things in place meant that were able to load our car and leave in less than 10 minutes, and we had pets – two dogs. This preparation proved to be so valuable.”

If a total loss and no inventory or proof of contents?

We asked Henry how insurance companies deal with a total loss where there are no photos or inventory of what was lost, and the policyholder is now homeless. What can our readers in these fire zones expect?

“While amounts paid will vary, company by company, in a total loss claims adjusters will often pay a significant portion of the policy limits for contents up-front. We have to remember, these people have nothing left, so adjusters will assist in finding them a place to live and pay additional living expenses. This means a roof over their head, food on the table and clothing on their back.”

Irene Henry’s clients are fortunate indeed that she did not become a lawyer.

“I am just so proud of the people in my industry who are there to help in the worst of times.”

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

The post For victims and potential victims of California’s wildfires appeared first on Dennis Beaver.

“Filing your insurance claim after a wildfire is emotionally draining and should be done sooner rather than later to ensure your place in line is held,” says Los Angeles-based Karl Susman, an insurance broker for over 30 years.

He worries that a great deal of false and misleading advice on how to deal with claims resulting from California wildfires could result in substantial delays in claims being paid. Here, he answers questions that policy holders often ask and addresses how to deal with some scenarios.

I have to file a claim. Do I need a lawyer right away?

Start with the assumption that your insurance company is going to do right by you. Do not rush out and retain a lawyer. If it turns out that they don’t, then ask for a claims manager or supervisor.

If that is still not satisfactory and you feel the insurer is not being reasonable, then it is possible to retain a public adjuster (more on that later). If that still is not satisfactory, then and only then would you want to hire an attorney.

“Hiring an attorney prematurely or unnecessarily for the typical loss slows down the process of resolving your claim and can add considerable expense, as lawyers will typically be paid a percentage of the settlement,” Susman notes.

Also, for the typical storm/fire-related loss, hiring an attorney takes your claim to a completely different insurance company department. There are fewer adjusters who are trained to deal with attorneys. This will cause a delay — sometimes lasting months and even years — with no benefit to the policyholder.

Would it help me to file a complaint against my insurer about the valuation of my claim with the office of my state’s insurance commissioner?

“Generally, it is a zero-sum game,” Susman says. The insurance commissioner’s office will send a letter to the insurance company that essentially says, “Please justify your actions with this customer’s complaint.”

The insurance company will answer the complaint with the same documents they gave to their customer.

“Filing a complaint seldom accomplishes anything, but again, we are talking about the average claim. The exceptional, bad-faith case is a different story,” Susman points out.

Is it worth it to hire a public adjuster? I hear they have a bad rap.

The typical cartoon-character public adjuster shows up at your business or home after it has been destroyed, quickly signs you up and takes a piece of the insurance settlement, leaving you with much less than your own insurance company would have offered you.

“Propaganda,” says Susman. “Just as all lawyers aren’t crooks, there are good and some very poor public adjusters. In my experience, the main reason people are often dissatisfied with having retained a public adjuster is that the expectations of what a PA can do are not often met, and the settlement process can be slowed down considerably. I have seen instances where it took years to resolve a claim, and the insured got nothing different than what the company first offered.”

Insurance companies are not trying to avoid paying claims.

“The public often thinks hiring a public adjuster will in some way force the insurance company to do more,” Susman says. “But that is not how insurance functions. If you can justify the claim, the insurance company will almost always pay it. But they need to justify the payment.”

He recommends, “If you are having trouble getting a claim resolved, put on your claims adjuster hat and ask yourself, ‘If I was the adjuster, what would I need to see in order to pay this additional money?’”

My home business was totally destroyed. I have insurance, so what should I do?

“If you have a total loss like that, I would ask for policy limits,” Susman says. “What often happens is that when people have a total loss, and they realize they didn’t have enough coverage, instead of taking policy limits, they want to fight and get more. It is a zero-sum game, the worst thing to do. The message is simple: If you have a total loss, don’t try to collect more than your policy limits. It is a waste of time and money and will reward you with heartache.”

Some final, important recommendations

– Please, don’t forget that claims adjusters are people. They have good days and bad days just like everyone else. Their job is to hear from folks who are at their worst because something bad has happened. Try to have a little sympathy, a little empathy. Be polite.

– Don’t exaggerate or lie. This can nuke your entire claim.

– Don’t forget that your adjuster gets paid to settle your claim. They want to settle your claim, not reject it. Help them help you.

– Think of technology as your friend when claims people are pulling out their hair with so much to do. Providing good photos and videos to your adjuster will help speed the process.

– Review your insurance needs annually with your agent or broker.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post How to deal with property insurance claims after wildfires appeared first on Dennis Beaver.

After the first El Nino storm of this year, Doug, a Central California reader phoned in a panic, his trembling voice explaining:

“Two days ago a neighbor’s tree crashed into our home, demolishing it, injuring our baby daughter and starting a fire. A neighbor heard the noise, called 911 and the Fire Department came out, followed by an insurance adjuster — a public adjuster. He asked me who I was insured with, and when I told him, he shook his head and said that I would never be treated correctly.

“He said that could become his clients, and get us all if not even more that what we are entitled to. His fee is only 10 percent, but I needed to move quickly, before our own company gets involved and cheats us. I was in shock and signed his contract.

“The next day my insurance company’s adjuster came out, reassured me that we were in good hands with her, immediately arranged for us to stay in a hotel and handed me a check for living expenses. I want to stay with my company — Can I get out of that contract?”

The average homeowner does not need a public adjuster

A pubic adjuster performs the same task as an adjuster who works for an insurance company, but is paid by the policyholder, usually a minimum of 10 percent of the claim. They monitor fire and police radio transmissions and, like sharks smelling blood, race to the scene of a fire or other property loss, often scaring already shaken up people into hiring them.

It can be a huge mistake, as Southern Florida-based independent insurance adjuster Peter Crosa explained to You and the Law. He conducts well-attended seminars for adjusters and the disaster restoration industry nationwide.

“Retaining a public adjuster at the very outset of a claim can be viewed as an adversarial act by your insurance company. Additionally, unscrupulous public adjusters will try to convert a legitimate $20,000 claim to an exaggerated $50,000 claim and take ten percent of the $50,000 if they get it. But the company may only pay you the $20,000, and then you end up with a real loss, having to pay the public adjuster,” he points out.

Over the years, You and the Law has been contacted by readers who had large losses where policy limits payments were offered by their own insurance company within a few days of the incident. But they had signed a public adjuster’s contract and for doing virtually nothing were on the hook for 10 percent!

“To prevent that from happening,” Crosa advises, “See what your own insurance company offers before retaining a public adjuster. In reality, for a basic claim, under $100,000, the average homeowner does not need a public adjuster. If it is a mom and pop couple who have been with the same insurance company for many years, chances are that they will be treated very well.

“But if it is a person who has a history of claims and questionable financial means, we’ll see that immediately. These people consider an insurance claim as an opportunity for income and will generally only use public adjusters. We see this pattern over and over again, especially with restaurant or night club fires.

You and the Law learned that the inside joke among claims adjusters is a question: “What do incompetent restaurant owners often have? Answer – Two failures and a fire!”

There is a reason that restoration companies such as Servicemaster or ServePro have little nice to say about public adjusters. “They try to slash their bills, while the insurance company pays in full,” Crosa stated. We independently confirmed his observations.

Lawyers who handle insurance claims will tell you that the last person in the world who you want to display a hostile attitude towards is your insurance company’s adjuster. Crosa explains the result of a “You-are-going-to-pay-me-no-matter-what” attitude:

“This puts the adjuster on the defensive. Their job is to control expenses, not cheat you and they have the checkbook. Your attitude should be, ‘Please tell me what I can do to help you with this claim?’ It is always better to come to the adjuster seeking help, rather than telling what you are going to do.”

“Finally, if you involve your lawyer out of concern, as a friend who just wants to make sure that you are doing what is necessary, this is good. Always remember that adjusters do not respond well to intimidation. They know how to drag their heels, so this is no time for a bull in a china shop,” he cautions

And Doug, our reader? He was saved by the three day cooling off period.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

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