Over the past year or so, we have been getting an increasing number of calls from property owners who continue to experience sinkhole damage to their property – even after their property has been repaired by the insurance company!  The factual circumstances are almost always the same – the insurance company mandates that the insured repair the sinkhole damage pursuant to the recommendations of the insurance company’s experts and then, after these supposed repairs are completed, the property continues to incur new damage.  Although sometimes this new damage appears immediately after the insurance company’s repairs are completed, many times the damage appears years later.  In almost every scenario, after the insured contacts the insurance company regarding this damage, the insurance company’s expert issues a quick report saying that the damage – if the expert even acknowledges the damage – is not from sinkhole activity and the claim is then summarily denied.

Many property owners do not realize that if the insurance company repairs the property pursuant to the insurance company’s recommended repair method, the insurance company must stand behind that repair method and must continue to repair the property – regardless of the cost – until the property is fully remediated.  The law on this process is clear – if the insurance company mandates that a property owner perform the insurance company’s sinkhole repairs to the property, the insurance company must continue to pay the cost of the repairs until the property is fully remediated or, if the insurance company gives up on repairing the home after beginning the process, the insurance company must issue a check for policy limits to the property owner without deduction for monies already spent towards the repair! 

Always know that you have rights against your insurance company and that you do not have to accept whatever remedy the insurance company may try to force upon you.  Clearly, it is important to have your claim reviewed by an experienced insurance attorney who can explain your options and, if necessary, zealously pursue your claim against the insurance company.

After watching scores of television commercials and other paid advertisements touting the supporting and nurturing nature of insurance companies, one can’t help but feel that the “good hands people” will always act “like a good neighbor” once a policy holder incurs a loss.  After years of practicing insurance claims law, we have learned the unfortunate truth that insurance companies – like all big corporations – are only after one thing.  Profit!  Unfortunately, the way the insurance companies make this profit is by collecting insurance premiums from its insureds for years and then, upon the placement of a claim by its insured, denying or otherwise minimizing the payment the insurance company makes to the insured on the claim.

A perfect example of this attitute was reflected in a claim we recently resolved for one of our clients.  Our client was a 90 year old gentleman who had served his country honorably in the military for decades and had even parachuted into France the day before D-Day!  He was one of the original members of USAA Property and Casualty Insurance and had been insured by them for 60 years – without ever having made a claim!  After noticing a substantial amount of cracking to his house, he placed a sinkhole claim with his insurance company, only to be summarily denied – in spite of the fact that the report from the insurance company’s expert clearly reflected sinkhole activity and that sinkhole activity had been confirmed to be a cause of loss to all of the other houses in his neighborhood!  After vigorously pursuing this matter for our client, the insurance company eventually agreed to a substantial settlement which allowed our client to finally repair his home.

Although insurance companies will often try to do the right thing, their judgment is too often clouded by their desire to keep your premium dollars in the insurance company’s coffers.  If you ever have the unfortunate experience of incurring a loss or other damage, make sure you seek the advice and counsel of an insurance claim professional who can explain your rights and make sure you are appropriately compensated for your loss.