Posted on 10/22/2024 9:09:46 PM PDT by Responsibility2nd
Are the homeowners right? Wrong or right - Liberty Mutual DID cancel the policy a week before the fire. In my book the homeowners were uninsured.
It would depend on the language of the insurance contract and state law. On what grounds is the insurer allowed to cancel unilaterally? What sort of appeal process is there if she claims she wasn’t actually running a motorcycle repair shop out of her home?
How many warnings before the cancellation?
The insurance company is in the wrong here which is normal.
That they are making no attempts to correct it until it is blared in the newspapers showing what err.... delightful and upstanding citizens they are is also normal.
How many warnings before the cancellation?
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Johnson was duly warned and she appealed the cancellation. Then 2 weeks later the house burns.
I find it hard to believe an old lady and her idiot son were running a business there. But it’s possible.
You have to play the game by the rules and the rules are when you don’t have insurance you can’t settle with the insurance company. I’m sure there is a clause in the very policy that was canceled that states that the insurance company can cancel the policy. They have every right to cancel a policy because they are insuring the house under specific circumstances and if you deviate from the circumstances you are in breach of the contract and subject to having your policy canceled. The way I see it is the insurance company did exactly the right thing and luckily so.
I’m sorry for the little old lady but she is the one who raised her “special needs” son and he was probably the one who installed a solar power system. He did it himself to save money on installation and on electricity. He took advantage of his mother and doomed her to homelessness. It’s her bad luck and his stupidity and not the fault of the insurance company.
Liberty Mutual recently canceled a homeowners policy as satellite pictures showed the owners had a bad roof.
Turns out the homeowners had solar panels on their roof and the lazy bastards at Liberty Mutual didn’t bother to check this out.
If she was paid up, they had no right to cancel, especially since they cancelled for a bogus reason. Good luck, lady; I’d try go fund me.
Yes, but if she was running a business out of her home, she should be canceled. Paid up or not.
A court will decide. And I’m betting Johnson will prevail.
I may have been premature concluding that the son installed a solar power system. She says it was where the fire started. I have solar in my house and it doesn’t look like anything that would catch on fire. I also have known of people who installed their own solar panels and stuff to save money. Ours had multiple inspections and certifications during the process by the city and the local utility company.
I also informed my insurance company about my panels.
They then proceeded to refuse to admit there was no claim and because she had "excessive claims" she could not get insurance with another company that was affordable.
After something like two years and finally getting a news show to cover it they back tracked and admitted there were no "excessive claims" and took them off her record.
She got insurance through another company.
These are what I call "unforced errors". Small mistakes that should be able to be fixed by a low level manager in under thirty minutes but that somehow are left to stew until they blow up and the company ends up with egg on their face.
And they keep happening.
My 86 year old paranoid dementia mother who has lived in the same house for 50 years. Had same insurance company.
Got a letter describing some issues with the house. She had 9 months to complete repairs.
Fix porch stairs, cut back bushes, clean gutters, and remove a branch.
It was the start of winter, 5 months later all issues were solved.
We took pictures and the day we were going to the insurance company, she got a letter saying her policy was canceled .
What the hell.
Her agent got it all sorted out and no lapse in coverage.
But the shock did not help and she passed away 2 months later.
So ya, insurance can cancel your policy.
Liberty Mutual Cancelled my Home owners insurance about 2 years ago,
also because they said my roof needed to be replaced.
I called 2 local roofing companies to come inspect my roof.
I did not tell either company about Liberty Mutual informing me I needed
a new roof.
Both companies climbed on my roof and did a physical inspection.
LM did not do a physical inspection.
After both local roofing companies did their physical inspections.
One said I had 10% granular loss. The other said I had 15% granular loss.
Both very low granular loss.
Needless to say I found another Insurance Company to write me thru
a local Independent Insurance Broker. And my rate is only about $105 per month. If you are having a problem with “Major” Insurance Companies,
try a local Independent Insurance Broker. They have a much wider net of
Independent Insurance Companies to draw from.
They aren’t allowed to cancel insurance immediately, they notify you that it is being canceled on a future effective date. Usually, 30 days from the date of the notice and the right to appeal the cancelation before the insurance commission if you feel the stated reason is bogus. The insurance company has to provide evidence to support their claims.
I’m aware of many individuals who have worked from their garage.
Need more facts.
I was an expert witness on a long court case where Aetna denied a claim on a business that totally burnt. My client won several million.
I showed the jury that Aetna’s internal rate of return on investments provided more money than the original claim, just by delaying payment for several years. They allowed me, as a finance professor and CPA to show the jury that Aetna’s expert witness was lying by misrepresenting the financial position of the business.
I do not trust insurance companies.
My advice to anyone is to always have a business continuing policy that forces the insurance company to pay while they are delaying payment. Without that, they delay payment as long as they can.
“They aren’t allowed to cancel insurance immediately, they notify you that it is being canceled on a future effective date. Usually, 30 days from the date of the notice and the right to appeal the cancelation before the insurance commission if you feel the stated reason is bogus.”
The laws vary by state.
I left Libert Mutual as their rate increases were insane due to all the roof replacement claims.
Many insurance companies are denying insurance for homes if a shingle roof is more than ten years old. There is a development near me where all the homes were built in the last ten years. The insurance companies are now replacing all the roofs due to hail damage.
Uninsured in my book, too.. My uncle’s insurance company once told him that his house needed painting and if it wasn’t painted, they’d let the policy lapse. Why? keeping up with the looks and condition of the house is indicative that it likely would be let to run to ground and have an ‘accidental’ fire.
I’d like to see her submission on the contrition of the house prior to the fire and the extent and content and shape of the contents.
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