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ckleisch

USA
46 Posts

Posted - 04/06/2004 :  15:05:54  Show Profile
Greetings:
A question for the assemblage? Involves HO-3 form and appendage endorsement HO-300. Quotation in form for Power Failure: Means "the failure of power or other utility service if the failure takes place off the residence premises. But if the failure of power or other utility service results in a loss, from a Peril insured against on the residence premises, we will pay for loss or damage caused by that peril insured against."

Ok. claim is from Hurricane Isabell. Power went out in community for three days. Insured had power restored. Since, hurricane there has been on premises brownouts. During, one brownout a expensive computer system was spiked and fried. Various outlets and switches do not function. Power company states it is an own premises electrical wiring problem. They advise replacement of aluminum wiring installed in 1972 original construction of home.

Question is under policy is computer covered? Is electrical wiring covered? Yes RCV coverage is applicable.

trader

USA
236 Posts

Posted - 04/06/2004 :  15:14:53  Show Profile
This would be excluded under more than one exclusion. I would think this also happened before Isabel and other weather events in the past.Some exclusions:
wear & tear, inherent vice, or latent defect.
Under planning, construction or maintenance, meaning faulty, inadequate or defective, design, workmenship, construction, materials used in construction.

Did you ask you the two big questions, 1. Was it sudden and accidental, unforeseen. Was it a risk of loss? No. Was it expected? Yes. If it is a risk of loss it cant be expected.

The computer "fry" would fall under the tube,transister or similar electronic component.
exclusion.














Edited by - trader on 04/06/2004 16:54:57
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KileAnderson

USA
875 Posts

Posted - 04/06/2004 :  16:27:01  Show Profile
Why would a person be sent home for simply asking a coverage question? If I was a supervisor I'd rather have a guy ask me something when he doesn't know than try to figure it out himself. I asked lots of questions when I started out that seem obvious to me now. I never got sent home for that. Everyone has to learn sometime.
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trader

USA
236 Posts

Posted - 04/06/2004 :  16:40:09  Show Profile
That was mean. I changed it.
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ckleisch

USA
46 Posts

Posted - 04/06/2004 :  16:49:30  Show Profile
The insured is adamant that the problem started only after the hurricane event. The tech that looked at the computer indicates an electronic spike during a brownout caused the problem. I have affadavits from witnesses that it was working correctly right up until the storm.
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trader

USA
236 Posts

Posted - 04/06/2004 :  17:04:52  Show Profile
If the power company will not accept liability for power surges, many carriers will not pay. He should have "liars affadavits for lightning" Its a better shot than Isabel. But if he has all that many doc,s send it in without a recommendation, live to fight another day.

Edited by - trader on 04/06/2004 17:17:28
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KileAnderson

USA
875 Posts

Posted - 04/06/2004 :  18:28:19  Show Profile
If it was the storm that caused it, what exactly did the storm do that caused it? Did the storm change the copper wiring to aluminum? What is different now as compared to before? If there is no physical difference in the property and the wiring which was substandard to begin with is begining to fail after 32 years of service. It is to be expected, that's why they don't use aluminum wiring anymore. Wear and tear and inherent vice are both excluded, therefore, no coverage for the wiring. What does the policy say about power surge?
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LarryW

USA
126 Posts

Posted - 04/06/2004 :  19:55:01  Show Profile
ckleisch: The loss to the computer is covered if you accept the service tech's analysis that a "spike" caused the damage to the computer. Presumably, a spike is a power surge which is a named peril for contents in the HO-3 policy. I am not sure what Kile is referring to when he says the wiring is not covered. As I read the issues, no one is asking you to replace the wiring.

Larry Wright
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KileAnderson

USA
875 Posts

Posted - 04/06/2004 :  20:16:08  Show Profile
Larry, read the last line of the first post on this page.
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JimF

USA
1014 Posts

Posted - 04/06/2004 :  22:17:42  Show Profile
In North Carolina (where Bill Kleisch lives) there is no coverage for power surge under the ISO HO-3 policy. Bill, if you don't believe me, then pick up the phone and call 1-800-JIM-LONG (Jim Long is the NC Insurance Commissioner by the way) and his office will confirm that.

Personally, I don't think there is coverage for this loss in most other states either. (Yes, I know, Texas policies pay for "everything" whether covered or not!)

Edited by - JimF on 04/06/2004 22:22:21
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Linda

USA
127 Posts

Posted - 04/06/2004 :  23:06:56  Show Profile
Jim, not any more--compliments of Ms. Ballard. About the only thing really good that came of that whole mess is licensing requirements for Public Adjusters. That was a much needed change.
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trader

USA
236 Posts

Posted - 04/07/2004 :  10:56:03  Show Profile
Linda: The good citizens of Texas still have the highest Homeowners Rates in 50 States. Our HO-A Modified is higher than Cameron, Louisiana, with more coverage ( MIC-3 All risk of loss). Yea I know Texas will get hit by a hurricane before Louisiana, Ms, Al or Fla. Don,t blame Ms. Ballard, blame the Insurance Companies who started paying the first mold claims in 2000, when the big 5 started the other 95 jumped into the grease with them. How about the foundation claims from the 1993 lawsuit, instead of discarding the conduluted HOB language for a good MIC-3, we kept this cash cow in Texas until the mold brought on the Homeowners Crisis. Now we have named peril and 1 or 2% Deductible. The Texas Insurance lobby still runs Austin, Texas.
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ckleisch

USA
46 Posts

Posted - 04/07/2004 :  14:49:53  Show Profile
Greetings:
To all those that reponded to my question I thank you. I had hoped to stimulate a response. In handling the claim I had noted that the coverage for the wiring would not be there. The data and documents for the entire claim including the "spike" document have been sent to the client for the "final decision". In dealing with a "21" year old insured whom wouldn't accept the thought that the claim wouldn't provide coverage for everything. I needed a quick second opinion. Your input with the insured looking over my shoulder went a long way to convincing him. Again thank you for your professionalism and I bid adeu.
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jshortley

1 Posts

Posted - 04/16/2004 :  14:33:48  Show Profile
CLARIFICATION OF NFIP ELEVATED BUILDING COVERAGE

I am the Director of Claims at FEMA for the National Flood Insurance Program.

The following message concerning elevated buildings has been disseminated from FEMA and is in full effect: “full coverage begins at the lowest elevated floor even if the pilings extend beyond that floor. Therefore, it is not correct to say that full coverage only begins at the floor that is on top of the pilings for such a building.”

We are doing our absolute best to contact the owners of buildings that match the above description to make sure that the adjustment was done correctly, and we are committed to readjusting any claims that were settled incorrectly.

We will monitor this chat room to see if there are any other misunderstanding or questions regarding this clarification.

James Shortley





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LarryW

USA
126 Posts

Posted - 04/16/2004 :  23:19:39  Show Profile
jshortly: Welcome to our little playground here. Thanks for the post to clarify the elevated building issue. As I mentioned in another thread, it is indeed refreshing to see NFIP acting in a reponsive manner to deal with some of the problems in the flood program. In the past, it always seemed any criticisms were handled with a very cavalier attitude. Is this the new and improved NFIP? We all hope so. You may want to review Stormdame's post earlier today in the "Isabell-hot potatoe" thread. Her post spotlights some of the isues which sorely need to be addressed. Come back and visit with us often.

Larry Wright
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mrmonk

6 Posts

Posted - 04/17/2004 :  08:18:36  Show Profile
Larry W,
AMEN!

Larry O
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