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.
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.
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.
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.
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.
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...
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.