September 7, 2009
What do you know about home insurance involving a fire?
pepermint p has question:
My friend had a fire in her home, during the final days of the sale. The insurance company is trying to prove fraud on her part, which there is none, and she has not paid out since Sept. 28, 2006. She is going for a polygraph test later next month, in the mean time she has no where to live, they have given her $2500 living allowance and refuse to give her more at this time. Any suggestions on what she can or should do?
My friend had a fire in her home, during the final days of the sale. The insurance company is trying to prove fraud on her part, which there is none, and she has not paid out since Sept. 28, 2006. She is going for a polygraph test later next month, in the mean time she has no where to live, they have given her $2500 living allowance and refuse to give her more at this time. Any suggestions on what she can or should do?
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Comments on What do you know about home insurance involving a fire?
Did the fire dept come up with a cause for the fire? If it was "suspicious", the company can have their SIU investigate. How long has she been waiting for payment? Obviously, the house didn't sell. I would call the State Insurance Dept if she feels the investigation is taking too long – & she did nothing wrong.
If she truly did nothing to cause the fire, then it may be time for her to hire an attorney.
5 months to settle a claim is not really an unreasonable time, especially if there are suspicious circumstances. And if they do prove that she started the fire, that $2500 they gave her under the "additional living expense" portion of her homeowners policy, they are going to want it back. If she started the fire, they legally don't have to pay her a dime, including living expenses.
Insurance companies have every right to investigate any claim, auto, homeowners, injury claims, anything they suspect might be fraud. Insurance fraud is a multi-billion dollar industry in this country.
insurance companies are not going to shell out the thousands of dollars for an investigation if there is nothing to investigate. they have a reason to believe there is something suspicious going on. your friend is going to have to wait it out. she can hire an attorney if she wants to pay for one, unfortunatley theres not a lot they can do until the company decides they are satisfied with the investigation findings.
What sale? She has not paid out WHAT?
The insurance company doesn't determine if arson is involved – the fire marshall does that. If the report comes back arson – and if she's a suspect – then by law they have to fully investigate the claim before they can pay, because she is NOT going to get any money for that house if she burned it down.
HOWEVER. If there is a MORTGAGE on the house, the mortgagee can still be paid, up to their interest in the value of the house, or the amount on the policy.
I found this article on home insurance which offers information as well as advice and tips etc, hope it helps.
What insurance company is it?