I gotta admit after Katrina the early State Farm response was that of a well oiled machine. Only later did claims management cook engineering reports to fleece their policyholders. My advice to those with insured losses in Gustav would be to hire a public adjuster to start and begin scouting for competent legal help just in case. Insurance industry lawyer David Rossmiller explains why:
One, this “inherent conflict of interest” certainly exists, just as it exists whenever you file a first-party property claim. This is not very startling, because it has been said — wait while my computer comes up with the final tally — 3,456 kajillion times before in insurance literature. For many of you the following explanation will be something you know already, but many don’t know it, so I am going to set it down in writing here. As you may or may not know, when someone makes a liability claim against you, say you ran into them with your car, your insurer owes you a fiduciary duty, assuming a duty to defend arises out of the allegations and the language of the insurance policy. A fiduciary duty is the highest duty imposed by law, and requires one to treat another’s interests like one’s own, resolving all conflicts of interest in favor or the insured. These type of liability claims are called third-party claims. In contrast, claims you file with your own insurer for damage to your house or other property are called first-party claims. An adversary relationship is assumed to exist between the insurer and insured from the time the claim is filed, and generally speaking, no fiduciary duty arises on the part of the insurer. Emphasis Sop
A policyholder equipped with the facts is less likely to get fleeced. Remember that no matter how big the smile and reassuring the words there is someone working hard behind the scenes (such as State Farm’s Lecky King after Katrina) to minimize, low ball or otherwise reduce the amounts to which you are contractually entitled.
sop
Just paid a visit to MDI website and thought it might be helpful to post these phone numbers – will make this information available as a comment and not a post.
The MID Coast Office is mobilized and will be available to answer consumer questions and offer assistance in filing claims. To contact the MID Coast Office call 228-867-2202 and 228-867-2203.
Mississippi Insurance Department at Main Switchboard: 601 359 3569
Statewide Toll Free: 800 562 2957 (Consumers Only).
For a list of Insurance Company Disaster Claim Reporting Numbers click Here.
MDI also offers a set of “tips” for filing claims; however, after reading many of the complaints filed in the Southern District Federal Court, I’ve got a tip of my own to add – When in doubt, don’t!
Contacting an attorney before you sign an agreement is far less expensive than retaining one after the fact – and by now there surely isn’t a lawyer on the Coast who lacks experience reviewing policies and settlement offers.
Sop:
Way to call it like it is!