Given the talk from Texas, I’m wondering when the Texas Insurance Department will issue one of its consumer protection policy bulletins on the Texas Windstorm Insurance Association – but, before I go there, let’s start with this incredible post-Ike insurance story from Chip Merlin.
My new client was born and raised in Houston. He started his own company ten years ago after working in construction for 25 years. His roof was damaged and water entered the attic causing damage to the insulation and then more damage as the water dripped down into the rest of the structure.
However, the insurance adjuster found that the windows leaked and allowed for the water damage. That cause of loss would be excluded under my clients commercial policy. After a fist fight almost ensued between my client and the adjuster, the adjuster agreed to hire an engineering firm. Texas Wind hired a well known insurance engineering vendor and sure enough, that engineer somehow opined that lower floor windows had water leaked and water defied gravity, finding its way into the attic. Is such a finding a “reasonable” basis? Doubtful. (emphasis mine)
Situations such as that are so insulting as anyone with modest intelligence can tell it’s a total crock of you-know-what – and a Texas-sized one at that. What I want to know is how engineers that put out the crap can hold a license and the same goes for the insurers that accept their reports. It’s way past time for the licensing issue to be addressed IMO.
Merlin doesn’t raise the licensing issue per se; but, I imagine he’s given it some thought as he’s got ample cause; and, no doubt, knows a lot more stories that, thus far, he’s not telling. Continue reading “Texas talking – the latest from both sides of its mouth”