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mrmonk
6 Posts |
 Posted - 04/15/2004 : 12:44:14
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I'm working on one of those Hatteras flood files that Mr. Shortley talked about that was "misunderstood". Talked to NFIP this am and their reply was that at this time the original adjustment stood. ie Building on slab rated as an elevated bldg. The PA called and is threatening to sue, not only for amount but also for "bad faith". This is after considerable conferencing with NFIP on coverage. Makes it very interesting to say the least.
Larry O |
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Red
24 Posts |
Posted - 04/15/2004 : 13:10:12
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Mrmonk:
Can you eleborate more on the loss and the particulars and what the PA's hanging his hat on. Thanks
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alanporco
USA
112 Posts |
Posted - 04/15/2004 : 13:16:07
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| Larry: PAs, and others who seek more than they are entitled to, always cry "bad faith" in an attempt to bully the carrier into paying. See if you can advise the insured that if they do decide to sue, they should obtain an attorney who is willing to take the case on a contingency fee rather than one seeking a retainer. An attorney who takes the case on a contingency believes the case has merit and is willing to invest his time. An attorney who demands a retainer recognizes that the case is weak and wants to be sure he makes money, no matter what the outcome. |
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Samson
USA
5 Posts |
Posted - 04/15/2004 : 14:12:37
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Being new and from Texas, I can only speak as to Texas tax. There is a retail sales tax the contractor must charge the customer on Commercial Roofing that is NOT owed on a residential roof. It would sure be easier if the tax were added on a separate line item for each material and labor category in those cases.
Example: tear off on a commercial roof is taxable to the building owner where it is not on a residence. Percentages vary from municipality to municipality. I've not yet been certified to handle flood claims.
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Samson |
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mrmonk
6 Posts |
Posted - 04/15/2004 : 15:03:22
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Red, The loss was in zone AE rated as post-firm and built on a pilings thru slab with lowest level enclosed and finished. The slab is above BFE and insured feels that is what qualifies him for coverage. NFIP rep and SF mgr stated that the requirement for that area for a post firm is that it be elevated with a clear space. Therefore, the enclosed 1st level has restricted coverage as an elevated structure. Mr Shortley FEMA's director of flood claims stated that this was a misunderstanding and the area complied and therefore should be covered entirely. We do not have this determination in writing, as you know FEMA is great at saying things but not putting them in writing. I'll keep you posted on the going's on with them. This can get interesting.
The biggest thing for the IA that worked these initially is difference in billing. 10k loss vs 125k or larger loss. I'm doing cleanup on daily so it doesn't matter to me, just job security.
Larry O |
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katadj
USA
315 Posts |
Posted - 04/15/2004 : 15:14:52
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The insured must comply with the terms and conditions of the policy: One of which specifically includes the adherence to the appraisal clause prior to bringing suit.
The Claim of "Bad Faith" will probably not fly in a FEDERAL court, as the NFIP is not an insurance company. At least, this writer has never heard of a bad faith award involving NFIP.
There will be many of these claims that will need “special attention” and anyone involved should be sure to CYA, and leave a paper trail a mile wide and 10 miles long, IYGMM.
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Edited by - katadj on 04/15/2004 15:15:33 |
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Todd Summers
USA
99 Posts |
Posted - 04/15/2004 : 15:49:11
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| Ok, I give up... what is IYGMM? |
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katadj
USA
315 Posts |
Posted - 04/15/2004 : 16:05:26
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If You Get My Meaning = IYGMM
Shorthand for the net, maybe we should create a small dictionary?
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Edited by - katadj on 04/15/2004 16:06:30 |
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KileAnderson
USA
875 Posts |
Posted - 04/15/2004 : 16:43:49
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Correct me if I'm wrong but if the building is post-firm elevated aren't they required to have one square inch of foundation wall vents per square foot of floor space? Is this why it has been ruled to not be in compliance? From what is sounds like to me, the NFIP rep and SF mgr are correct. The reason that an elevated building must be elevated is to allow water to pass under it. Lots of elevated buildings were that way when built, but later the original owner or subsequent owner decides to close in some space under the house as a bedroom, or kitchen, or bathroom and these areas have no coverage because they are below BFE.
Please explain to us how a building is considered elevated if it is built on a slab resting on the ground? |
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Red
24 Posts |
Posted - 04/15/2004 : 19:57:50
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Kile:
I think Mrmonk defined it is that the slab is ABOVE bfe. IF that is the case, Mr Shortly would be correct and
the adjuster and State Farm would be incorrect. It would also
indicate that the building was incorrectly rated. It should have
been rated as a non-elevated building instead of elevated.
What I think is strange is, wouldn't this building have an elevation certificate if it was built after the firm date for the community to show that the slab was above the BFE. What does the certificate say. Could it be that the Community messed up on a bunch of these things.
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KileAnderson
USA
875 Posts |
Posted - 04/15/2004 : 20:38:39
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| It sounds to me like there are some underwriting issues that should have been resolved a long time ago. When the adjuster arrived at the loss and noticed that the building was not elevated but the policy was for an elevated building it should have immediately been written up for reformation before anything was paid. After hearing back from reformation the only thing the adjuster can do is follow their guidance and handle the claim accordingly. |
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Red
24 Posts |
Posted - 04/15/2004 : 21:43:50
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Kile you are absolutely correct. Do you think that the building and planning dept could have made a bunch of mistakes that NFIP is now taking the heat for. If it is a post-firm building there must be a elevation certificate issued. What does it say. I
was there but not in that particular area. Were you in that area? Perhaps mrmonk can also help us out aa little here. What are the houses in the area like. Are they built as pilings with backfill with slab or just what. It sounds to me there is more issues here than just the adjuster making a mistake |
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katadj
USA
315 Posts |
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katadj
USA
315 Posts |
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mrmonk
6 Posts |
Posted - 04/16/2004 : 07:18:59
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| Red, they were built with pilings and backfill and slab. elevation cert. shows slab above BFE. Requirement is for elevated bldg for this zone per NFIP. I'm still in correspondence with them on this. |
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"Isabel", is a Hot Potato headed behind?
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