October 05, 2013
Insurance Company: Allstate
Coverage Type: Homeowners Insurance
- Claim Handling - Denial of Claim
- Claim Handling - Unjustified Accusations
I live in California, My father lived in Midland, Texas, He died in March 2012. I had continued my father's insurance coverage with Allstate Texas Lloyd's and never thought that there would be a problem. Allstate Texas Lloyd's was aware that the house was furnished and would be unoccupied until sold. Just prior (30 days) to us arriving in Midland, Texas I received a large water bill from Midland City Water Dept. I contacted the water department immediately and the next door neighbors to see what the problem might be. The Water department shut off the water and they and the neighbors both checked around the house and concluded that the water was just going down a drain in the house. Because of legal issues and probate it took almost a year to arrange the sale of his house. My wife and I were in Midland, Texas in March 2013 meet with my step mother's sister to sell my fatherís house and his car. When we arrive in Midland to stay at the house and opened the front door, we found that the ceilings in the central part of the house, entryway, family room and kitchen had fallen out and there was water damage in most of the house and some mold. I reported the incident to Allstate immediately and they mentioned limits on mold coverage and that they would only provide temporary lodging for the owners of the house. I am the administrator of the estate and apparently I don' get the same benefits of the policy as the homeowner. Allstate also mentioned that this isn't your typical claim. We met with an Allstate claims adjuster sent from Lubbock, Texas and he said he didn't see any problem and he would write the claim against water damage because that would produce the best result. I have had four denials from Allstate so far mostly because Allstate sayís that I didn't follow conditions of the policy, Allstate never furnished me a copy of the policy and I wasn't a party to the policy. Allstate doesn't want to understand that the damage was already done by the time I received the water bill. The house was sold as is including all the furniture and most of the personal property still inside. I filed a complaint with Texas Department of Insurance and they didnít do much more than ask Allstate Texas Lloyd's why they denied the claim and in my opinion they never did investigate my complaint. I estimated the loss to the estate to be close to $150,000. I will never have anything to do with Allstate Texas Lloyds Insurance and I recommend that anyone in need of Homeowners Insurance steer clear of Allstate.
October 6, 2013 at 10:52 AM
Contact an attorney, not just any attorney. Someone who knows how to file a Bad Faith Claim. These attorneys will take the claim on for a percentage so that you don't have to come out of pocket. IN almost every state you are allowed to reopen the claim for 3 years. But do not wait! The department of insurances in each and every state, are in the pockets of the insurance companies. They are not your friends, You are just someone that they do not have to answer to.