Should we be aware of Flood Insurance

[Terrel L. Shields]

Perhaps we should include a disclaimer regarding whether Flood Insurance will pay?

I would think that's not our call. But we could assume that we are not valuing the property on the basis of whether or not the property has flood insurance. The OP's scenario is failure to fix what was paid by the insurance company previously.

How would anyone know the details of a "Claims Made" and the disclosure of what was paid for (the insurance breakdown) ?

just curious

Wouldn't likely unless there was a required new occupancy certificate. I mean if damage was extensive, wouldn't the building inspectors have to approve the repairs?

 

[J Grant]

I am always amazed when appraisers want to play home inspector, insurance adjuster or attorney. We have enough problems and layby without inserting ourselves into those areas -

 

[Mark K]

If it had a prior claim why did the prior owner not replace the appliances as per the claim? If I drive around with a bent fender after being paid to fix that fender the insurance company isn't going to fix it again if I have another wreck.

Because some homeowners think of a large insurance payoff in the same category as winning the lottery.

We get hail storms around here, think golf ball, tennis ball size every few years. In years past, the insurance company would write the check to the owner AND the mortgage company. When I was doing a lot of SFR mtg appraising for the local banks holding the mtg, they would send me to inspect to see if the new roof was actually installed before they'd release the funds. On quite a few occasions, upon inspection, the owner would have the material sitting on skids and they'd tell me that they were going to replace the roof over the weekend. Yeah, right. I wouldn't sign off and they'd get really pissd. They wanted the $$ so they could turn around and return the material.

It seems that nowdays a lot of insurance companies just write the checks to the owner. Of course some owners then go out and buy a bass boat or new truck and never replace the roof. BTW, a lot of these un-replaced roofs start leaking about 2-3 years later.

I guess I'm guilty too. Hail storm beat up my old beater pickup truck that I paid $2K for. Insurance paid me $2K for the damage. I drove it for another 5 years and sold it with the dimples...for $2K.

 

[Terrel L. Shields]

Hail storm beat up my old beater pickup truck

I didn't have comprehensive insurance on an old farm truck my bro & I used around the place, and it took a hail beating. But being an old and thicker metal hood, only a few big dents were noticeable. With a hair drier and a toilet plunger we got the worse of it out and went on our merry way.

 

[J Grant]

Insurance companies are getting really tough here. If a homeowner does not replace a roof within 18- 20 years from date of install, even if roof is functioning fine, they will not renew the policy.

 

[Mark K]

Insurance companies are getting really tough here. If a homeowner does not replace a roof within 18- 20 years from date of install, even if roof is functioning fine, they will not renew the policy.

Many insurance companies in this area are only writing cash-value policies re; older roofs for new policy holders. They figure 20 yr. life. If your 15 yr. old roof is damaged, you get paid 25%.

Replacement cost for the roofs is available but is an additional rider, $2-300/year extra unless/until you install a new roof. Too many hailstorms. Typical roof/gutters claim runs $20K-$40K.

Tennis ball size hail will bust out car glass. Local ford dealer had every car on the lot with busted windows, not to mention sheet metal and interior water damage. No big loss, they were fords, after all.

 

[J Grant]

Many insurance companies in this area are only writing cash-value policies re; older roofs for new policy holders. They figure 20 yr. life. If your 15 yr. old roof is damaged, you get paid 25%.

Replacement cost for the roofs is available but is an additional rider, $2-300/year extra unless/until you install a new roof. Too many hailstorms. Typical roof/gutters claim runs $20K-$40K.

Tennis ball size hail will bust out car glass. Local ford dealer had every car on the lot with busted windows, not to mention sheet metal and interior water damage. No big loss, they were fords, after all.

Now they are convertibles!

 

[J Grant]

The old-style buildings with smaller windows low to ground one story withstand storms better. The ideal shape is an igloo. Just saying

 

[Surf Cat]

A “prior loss” report discovered that the previous owner filed a flood insurance claim, but did not complete the repairs with the claim payout. From the home’s condition to the serial numbers on the appliances, everything was the same from the previous insurance claim, leaving her family on the hook for close to $100,000 in damages.

Admittedly, I did not read all the comments. So my inquiry might already have been asked.

Why was the new owner sold a $8,600 policy If the previous claim repairs have not been made?

I'm kind of looking at it like a 1004D. The subject to repairs have not been made. Don't pass go, don't collect $200.

 

[jay trotta]

Admittedly, I did not read all the comments. So my inquiry might already have been asked.

Why was the new owner sold a $8,600 policy If the previous claim repairs have not been made?

I'm kind of looking at it like a 1004D. The subject to repairs have not been made. Don't pass go, don't collect $200.

Bingo..........my point exactly; IE: you have a car accident (let's use $3,000 here, go to any other New Insurance Co. for a new policy (trying to lower your cost from $1200/yr.) and they will tell you that because you had a claim, your cost has risen to let's say $1800 (an example). The point is, you're in their system and cannot slide by the fact a "prior claim" has been made.

PS: I have no idea what the previous cost was, could that alone be the reason why the cost doubled, tripled?? I would hate to be an agent in the middle of that one.