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Hi folks, so check out the following :

State Farm is being sued after homeowners say the company failed to properly manage their insurance claim for hail-damaged property in Katy.

John and Patty Davis filed a lawsuit on Friday, May 11 in the Harris County District Court against State Farm Lloyd's and insurance adjuster Blaine Harris, citing breach of contract and violations of the Texas Insurance Code.

The Davises say on July 27, 2010, a hail storm pounded the Katy area and damaged their State Farm-insured property. Although their house suffered significant damage, State Farm improperly denied, and/or underpaid, their claim, according to the brief.

The Davises are seeking attorney's fees, court costs and damages. They are being represented in the case by Houston attorney Richard D. Daly.

Harris County District Court Case No. 2012-27753.
This is a report on a civil lawsuit filed at the Harris County Courthouse. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.

In and of itself, this type of post isn't something new, since the dawn of the insurance industry there are going to be lawsuits between insureds and carriers, PERIOD!

What I want to point out to our newly licensed brethren is in addition to State Farm being a named defendant, the actual adjuster who inspected this claim is also a named defendant.

Simply put this guy is being sued as well as State Farm. In all likelihood this adjuster did NOTHING more than follow SF guidelines. That right there is no longer a defense.

Not trying to scare anyone, just remember to take this career choice seriously, remember there is more to the adjusting industry than IA firms, XM8 and fee schedules. Oh and never forget that those very same people that you proclaim to want to help as a reason to get in this industry, will throw you under the bus so fast it will make your head spin if they feel they aren't getting what they need to move on and bring their property back to a pre event condition. They will also throw you under the bus because you won't throw in the termite infested shed that has been eaten slowly over the last 10 years (they will tell you that the tornado displaced a colony of termites or carpenter ants and that they flew into the shed. They will tell you that that old tin roof on the barn, (yes the same tin roof that has holes eaten through it by rust) was in pristine condition until the tornado, flood,hurricane,etc...

Understand that these examples are the exception and not the rule. For the most part, you will find that adversity and tragedy bring out the best in people. That you get to participate in history making events gives you a certain (I AM making a difference in people's lives) kind of feeling.

For the new folks (as experienced adjusters already know this) never forget that in most cases the only person the insured will see from the carrier will be......you! So with that being said, how that person sees you is how they view the insurance company and the claims adjusting industry as a whole. No matter what kind of day you are having, (you are going to be stressed out, irritable, hot sweaty, cold wet and tired) you need to be the calm in a sea of chaos, a port in the storm. Do NOT EVER make ANY promises as in most cases you will have ZERO draft authority.  Let them know you are here to document the damage and that any claims decision will come from the insurance company. Never tell them something is or isn't covered. NEVER act like you are being condescending, you will have many insureds try to lead YOUR inspection and point out this damage and that damage. When I have pushy or even well meaning but disoriented insureds trying to lead the inspection to show me the damage, they will often have a great deal of notes and photos, I will sit them down and have a brief conversation stating the following:

I tell them I prefer to do my own inspection because if I only look at what they think is damaged, I may miss something. I will hand them a document in regards to contents and ask them to start filling that information out. Further, I tell them once I am done doing my inspection I will be glad to walk with them through the inspection and ensure that the damage they wanted to point out has indeed been addressed. I will point out the damage I recorded. I make them aware that I am NOT there to decide if damage is or isn't covered, I give them my card with contact information. I tell them that the insurance carrier will be notifying them ASAP in regards to their claim and to give me a call should they have any questions or concerns.

One of the biggest causes of complaints and tension between adjusters and insureds is the lack of responding to an  insured's question or concern from the adjuster once the adjuster has left the property

Sometimes more than anything our job is to NOT only address all the damage, but to lend a sympathetic ear and let them talk. Be understanding, kind and compassionate. NEVER blow an insured off or make them feel like you don't care or don't have the time. Trust me, the few extra minutes spent with an insured is nothing when you compare it to the insured obtaining counsel or a public adjuster. You think an insured is slowing you down when you could be off to the next claim and thereby costing you money? Well when that insured feels that you blew them off and didn't listen or that you refused to look at damage and they obtain a PA or counsel, guess what? Now they have really cost you money , once a claim is reopened or disputed litigated whatever, you don't get paid one dime until said claim is closed.

Remember that you can be sued as an individual for your actions or inactions out in the field. The carrier has limited to no duty to defend you. There are more than a few adjusters( some new/some experienced) at this very moment who are currently defendant's in hurricane Ike claims stemming from TWIA (Texas Windstorm Insurance Association) insureds filing suit over TWIA's egregious behavior. As discussed above, the adjusters in question are NOT protected with the defense of simply following TWIA guidelines and therefore be immune from liability.

All adjusters must hold some type of E&O insurance coverage (Errors and Omissions) Some IA firms provide E&O coverage at no cost, some IA firms provide E&O coverage for a small premium (usually anywhere from $200.00 to $400.00 per year) However said E&O will only cover you when doing claims to the specific IA.

You need to carry your own, it is NOT cheap but isn't prohibitively expensive. Shop around.  You better have E&O because if you don't and you end up a defendant, you could have your personal assets seized(IE home cars, kids(just kidding about the kids))

In closing, I am not trying to scare anyone, but this is something you need to be aware of.

Robby Robinson