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Last Post 04/23/2009 6:06 PM by  Medulus
DOI just doubled policy limits for Sayre Fire victims due to vague policy language
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Mike Smith
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04/22/2009 2:25 PM
    I handled 30 claims (about 25 were totals) for the Oakridge Mobile Home Park in Sylmar.  The park has 600 mobile homes and 485 were totals, with all the rest having at least heavy smoke/ash.  The whole park is closed down, so even if your house made it through, you still can't move back. 
     
    These are also high-end mobile homes, with most being triple or quadruple-wide with brick steps and skirting. 
     
    Anyway, the point of all this is that there was a line in the policies that said there was 110% coverage in the event of a total loss.  There was an endorsement on many policies that increased that to 125%. 
     
    Our understanding (and I'm guessing the understanding of the insurance companies) was that the policy limit was considered 100%, and the insured's had a possible 10% or 25% coming to them. 
     
    Per this article below, the DOI has now more than doubled the policy limits, by interpreting that endorsement to mean 110% or 125% ON TOP of the policy limits. 
     
    I guess that means my 25 total losses are going to be reopening pretty quick.
     
     
     
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    Medulus
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    04/22/2009 5:48 PM
    Ignoring for the moment your oxymoron, "high end mobile homes", and the Jeff Foxworthy jokes it brings to mind......(If your home is on wheels and your car is not.....).....
    I read the article in utter amazement.

    The company I worked most with on Katrina determined that when they issued their hurricane deductibles by endorsement they inadvertantly gave their insureds coverage for anything related to a hurricane -- including flood and storm surge. I was instructed to call all my insureds and arrange a second inspection for flood damage. I had some very happy insureds.  I am not familiar with the Insurance Journal, but it seems to have a pro-consumer, anti-carrier slant which is not hidden at all. 
     
    We run into some very creative policy interpretation  out here in California.
    Steve Ebner CPCU AIC AMIM

    "With great power comes great responsibility." (Stanley Martin Lieber, Amazing Fantasy # 15 August 1962)
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    Mike Smith
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    04/22/2009 7:59 PM
    I know "high-end mobile homes" sound funny, but many of these were insured to $200k - $250k for just the trailers/coaches. They paid another $600 a month or so to rent the space they were on. Many had brick from the ground to the roof (not just brick skirting), detached 2 or 3 car garages, etc. The term I heard over and over again was "the Beverly Hills of mobile home parks".
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    Medulus
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    04/23/2009 6:06 PM
    To paraphrase Saint Phillip, "Can anything good come out of Sylmar?" "Beverly Hills of mobile home parks"! Now that's an image!
    Steve Ebner CPCU AIC AMIM

    "With great power comes great responsibility." (Stanley Martin Lieber, Amazing Fantasy # 15 August 1962)
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