Posted on 10/22/2024 9:09:46 PM PDT by Responsibility2nd
LAS VEGAS (KLAS)– A national insurance company refuses to pay the insurance claim of an 82-year-old woman whose home in Las Vegas caught fire and burned to the ground in July 2023, destroying 70% of it and the majority of her possessions inside, the 8 News Now Investigators have learned.
Liberty Mutual canceled the woman’s homeowners policy two weeks before the fire saying the woman, Judi Johnson – and her special-needs adult son – were running a motorcycle repair shop out of the three-bedroom home near Oakey and MLK boulevards, according to documents provided by the homeowner.
“No,” Johnson said when asked if she or her son were running a business from the home. “And I don’t see how it could have been very profitable. You know, we have no skills. We have no abilities. I don’t know, one bike from another.”
Regardless, Johnson and her son are living in temporary housing. She says before the house was boarded up, vagrants would break in, stay inside – and loot – the house.
“They would break the padlocks,” Johnson said, telling the 8 News Now Investigators that those intruders “ripped out all the plumbing.”
Neil May, a public insurance adjuster at Spartan Claims Resources, took Johnson’s case when the insurance company refused to pay Johnson’s claim.
“She definitely needs an advocate,” May said during a tour of the property earlier this year.
“The just resolution would be that they [Liberty Mutual] would cover this loss and they’d rebuild it to preloss condition,” May said, noting that normally an insurance company would make an initial offer of settlement within 30 days of the claim.
Johnson said contractors she hired to provide estimates said it would take six-to-nine months to restore the home. But it’s been vacant for well over a year and work has not commenced.
“This is accidental direct physical loss, which is an accident,” May said. “This is something that is definitely covered by every homeowner insurance policy. “
Initially, Johnson explained, an inspector from Liberty Mutual told her a cigarette butt he found in her back yard caused the fire. But Johnsonis adamant that the fire started on the back exterior wall of her home where her solar system hardware is located.
“He said, ‘this is what caused the fire.’ I said, ‘the fire started there, and a cigarette butt doesn’t stay lit,” Johnson told the 8 News Now Investigators, pointing out the black char on the wall surrounding the solar installation.
Las Vegas Fire and Rescue, whose firefighters Johnson credits with putting out the quickly-spreading fire and saving her pets’ lives, would not identify a cause.
“While we may have a theory, it would be unethical to confirm or negate the theory as we cannot apply supporting evidence,” a fire and rescue spokesman told the 8 News Now Investigators. Explaining that citing a source of a fire requires a “high degree of certainty and proof,” the spokesman said: “The heat source is listed as undetermined. Additionally, the factors contributing to ignition are listed as undetermined.”
But May, the public adjuster, said Johnson is being mistreated by the insurance company since it hired an attorney from California to represent it in its investigation of Johnson’s claim.
“I think she’s being more belligerent towards our client, Judi,” May said, adding, “How would you want someone to treat your grandmother? That’s how you should treat every client.”
The attorney examined Johnson under oath in December 2023. She took issue with Johnson’s written assertion that a certain refrigerator she bought at Lowe’s perished in the fire and would cost $700 to replace. The attorney called Johnson’s refrigerator claim “a lie.” Johnson, in her own defense and appearing at the examination without an attorney, said, “I did the best I could.”
“That’s not doing the best you can,” the lawyer replied. At a different juncture, the attorney cautioned Johnson that the misrepresentation was “potentially a felony.”
To date, there are no charges against Johnson pending in Clark County Justice Court or District Court.
But the examination under oath evolved into a discussion of the purported business being operated from within Johnson’s home.
Johnson said she appealed the insurance company’s decision to cancel her policy.
The attorney asked, “And then the decision on the appeal was they still felt that a business was being operated out of your home, correct?”
“Correct,” Johnson said.
“And two weeks later, the house catches fire?” the attorney asked.
“Correct,” Johnson answered.
“And you don’t think anything’s wrong with that?” the attorney asked, questioning the timing of the policy cancellation and the fire.
Johnson, though, is optimistic.
“The way I look at it,” Johnson told the 8 News Now Investigators, “I’m going to win.”
^^THAT^^
Re the OP: Not enough facts, too much BS.
“The insurance company is in the wrong here which is normal.”
i’ve had two different insurance companies try to F me over on two different roofs destroyed by major regional hail storms that destroyed thousands of roofs ... in both cases, adjusters lied about there being no damage ... upon appeal, subsequent adjusters admitted the roofs were destroyed ... seems like standard operating procedure is to always deny the first time ...
The roof of my mothers house had not one, but three leaks. She filed a claim with her insurance company to get them to pay for a new roof. The insurance company sent over one of their employees to inspect her roof, who then declared the roof was just fine for another 5 years and denied her claim.
She had to borrow 4 thousand from her brother and I put up the other 4 thousand in order to get her new roof. And she switched insurance companies.
“And she switched insurance companies.”
yeah, i switched companies after the first time one tried to F me over on a hail-destroyed roof ... and THEN the NEW company tried to F me over later on a hail-destroyed roof on my next house!
This is a tough one to call. Too many unanswered questions. Was there really a bike shop in the house? Was Liberty Mutual right to cancel the policy if there was no bike shop? If there was a bike shop or other business is it stipulated in the policy that it would be cause for cancellation? What proof is there that there was a bike shop? Were they given any notice prior to cancellation? anyway, who runs a motorcycle repair shop out of their house? I can’t say I’ve heard of everything, but I’ve heard a lot, and this one is a first. Monkey bars hanging from the living room ceiling. cylinder heads on the shelves, exhaust pipes all over etc., etc.
The investogator was followed around by an emu that made critical observations
After Katrina, I side against the Insurance companies almost every time...
Thank you.
Liberty, Liberty, Liberty
On your own, on your own, on your own.
Oh God, Liberty Mutual! I could write a book about how crappy they are. I almost had a nervous breakdown flogging them to repair the tornado damage to my moms house in 2021. after 1 year I finally wore them down til they just wrote me a check for enough to repair the house and I had enough left over to refinish the wood floors and recarpet the bedrooms and a new refrigerator. My Mom died before the repairs could be made so I held that over their head.
Do not ever get Liberty Mutual insurance. We have Travelers and never had a problem.
Nevada is 30 days
I am not sure about home insurance but I know with medical they farm out the claims to processing companies who are paid by the claim. The processing companies figured out that if they enter the claim into the system and approve it they get paid once. If they deny it and it is run a second time and they approve it they get paid twice.
Quite a neat little trick.
Another good one, if you are military or former military, is USAA. Chubs is a third I have heard is good but I have no personal experience with them.
Yes we had tornado damage from the same tornado as my Mom who lived across the street from us. We had a check 72 hours later from Travelers.
So is Pennsylvania 30 days..
Not the case with another insurance company that shall remain nameless but rhymes with Fate Harms.
Yeh, Fate Harms and Allstate are worse than Liberty Mutual. 😆
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