Now, it’s no secret we’ve got insurance problems here in Mississippi; but, Texas has one that I had not contemplated until I stopped by Merlin’s blog. Over in the Lone Star state, insurance is making things tacky.
Suppose some shingles on a roof are damaged, but not all. Does a policyholder get a hideous looking checkerboard roof which affects the value of the structure and possibly the neighborhood? If part of a carpet is damaged, is it patched leaving a new part slightly different looking in the middle of a room? Many of these issues never arise because many insurance companies pay to match, trying to maintain a happy customer. Some pay for only the damaged amount, and end up fighting with their customers.
Catadjuster’s comment on the post tells more about Tacky in Texas:
I have one case in which State Farm is replacing only 2 sheets (8×4) of paneling in a bedroom of home where the paneling has been there for over 20 years. I have another case in which TWIA is replacing ceramic tile in the family room but not the breakfast area or the foyer even though the floor is continuous to both areas, this tile is over 30 years old. In each of these cases neither party can find these items available.
Merlin responded, we have heard more adjustment complaints regarding matching from policyholders and public adjusters in Texas than anywhere. That stands to reason because, as Merlin notes, Florida policyholders are protected.
“§ 626.9744. Claim settlement practices relating to property insurance
Unless otherwise provided by the policy, when a homeowner’s insurance policy provides for the adjustment and settlement of first-party losses based on repair or replacement cost, the following requirements apply:
..2) When a loss requires replacement of items and the replaced items do not match in quality, color, or size, the insurer shall make reasonable repairs or replacement of items in adjoining areas. In determining the extent of the repairs or replacement of items in adjoining areas, the insurer may consider the cost of repairing or replacing the undamaged portions of the property, the degree of uniformity that can be achieved without such cost, the remaining useful life of the undamaged portion, and other relevant factors….
Since the market for Elvis painted on velvet would not be harmed, perhaps Commissioner Chaney will adopt the Florida language in regulation and spare us from the threat of tacky as hurricane season approaches.