Lesson learned. Ouch! I got burned.

Date: Fri, 29 Aug 2008 08:18:12 -0400
From: Mark Stinson
Subject: lesson learned, ouch ! I got burned

I learned an important lesson today. Sometimes you get what you pay for and sometimes you get screwed. Pay close attention to the lesson I learned so you don’t get bit in the butt.

The first thing I learned is that manufactured homes even if its one that is brought in on trucks and assembled like a traditional home fall in a certain category with insurance companies. As a rule after they turn 10 years old you cant get full coverage on them. You only get fair market value based on its age. Its depreciated to a much lower rate than tax value.  The industry standard for heat pump life span is 12 years but on manufactured homes, even if it’s a $200,000 high quality modular assembled with cranes on site, the heat pump is depreciated at 100% after 10  years by many insurance companies. A good part of your home is valued at far less than its real value because it’s a crammed into a ( Manufactured Home ) category.  Before you assume like the insurance company does that a manufactured home is a mobile home ( single wide or double wide  ) pay attention to this. Manufactured homes are becoming a big part of the market now because they are built to high standards in an enclosed environment on an assembly line. These homes in many cases are built better than traditional stick ( on site ) homes. These homes are assembled in sections in a factory  quickly and efficiently cutting down on expenses and lost time due to weather concerns.These homes are often single or two story homes with the appearance and quality of a traditional site built home. When finished they are taxed as regular homes but are not insured  as such.

The second thing I learned that insurance companies are doing is this.. If you are standing at your window and you see lightning hit the power pole in front of your home and the lightning travels the line and fries your wiring or even burns your home to the ground you will not get a dime. Unless lightning is mapped by radar lightning strike methods to hit in the direct vicinity of your home ( direct contact with the house )  It is not considered lightning damage since it came in through your electrical system. It is considered a power surge. NC Joint Underwriting  Association , my former insurance company , does not pay for damages caused by what they deem a ( line power surge ). My entire claim of over $8000 was denied because  it was considered a power surge.. In other words , I paid for full coverage, my policy was re written when the home turned 10 years old. I got a copy of that policy and assumed it was the same policy it was the year before and kept giving these people my money. When I needed the insurance I paid a premium for to cover  what I thought I was paying for it didn’t.

Ok for those that think I should get off my a-and provide for my family. I paid for this insurance just like you pay for yours. I paid my premiums and I thought I was getting what I asked my agent to cover me with. I like many wasn’t aware that when you ( re new ) your policy every year that changes are made that you have to search out and find in your new copy of your new policy to make sure you are still getting the coverage you think your paying for. Insurance companies aren’t required to bring changes to your attention when you ( re new ) because its considered a new policy even if the policy number is the same. Many good companies will highlight changes in policy but many don’t they expect you to find it. If they change anything in that policy during the year they are required by law to bring it to your attention because you have already bought that particular policy. This is not so when you renew because they send you a new copy of the policy and you as a consumer are supposed to sit down and read it with your agent to know you are still getting the same coverage.

Ok for a moment lets look at this from a certain point of view. Don’t look at is as someone trying to get something for nothing, look at it from your point of view as if it was your heat pump and refrigerator that got fried. How would you pay for a new heating system and refrigerator if this happened to you? Your insurance company just shot you the international peace sign and left you with nothing.  How will you replace these items, how will you get by till you do?  What if you don’t have enough equity in your home for a second mortgage?  What if your credit cards or credit period is overextended?    Forget about my particular heath problems, my situation, look it form your own point of view, so what your opinion on this?

Many people suffered losses after Katrina because the insurance companies point of view was that a storm surge was considered ( flood damage ) . This is no different than them stating in their opinion lightning that damages your home through a power line is a ( line power surge ). In either case they will not cover your behind, but they have done an excellent job covering their bottom line.  If anything, I really want you to sit down with your agent and read and understand your policy. There are no such things as dumb questions. Ask them, will my insurance cover my homes replacement value?  What about personal items, will my policy pay for power surges that cause fires or electrical damage. What will it not pay for?   If one person sits down with an agent  and finds out their not covered properly, if that person gets their policy amended, a new policy or  rider added to compensate them for these types of damages and later they have a claim where they get paid,, I feel my goal here has been accomplished.  I’m going to try to clean up my own mess now somehow.

Goodnite Mark

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