Are You Really Covered?

By now the story of the flood, hail, winds and close encounters with tornados has been told. The destruction, the mess, the cleanup. But one part of the story still remains…..insurance claims.
Within hours of the July 12th flooding, affected residents were causing their own flood by way of phone calls to their insurance providers. Days after that, when round two and three hit Chestermere, more calls of flooding and hail poured in and then, just when we were starting to feel safe again, a hail storm on pounded Chestermere on August 5th, brought even more cries for help to insurance companies.
Over the last few weeks, depending on who you talk to depends on what insurance experiences have been like. Some residents have been treated like royalty by their insurance providers and others are fighting tooth and nail to get even the most basic of coverage out of the policy that they’ve been paying for so that they would be protected in situations like this. Residents have been furious with their providers, even to the point of publically shaming them by having signs up in their yards and organizing a rally.
Through all of the flooding and hail storms, a name has been circling through our city as someone who basically fights the crime of insurance companies that are denying claims and are not helping out their customers. This person is Alison Murdock of Almacjay Restoration and she has 20 years in her family owned insurance company and 15 years as a Construction Project Assistant/Manager. Many residents of Chestermere have turned to her for help during the past few weeks has insurance companies have been put to task to see if they really cover you the way you think they are.
Murdock gives this advice when people are speaking with their insurance provider about the recent hail damage, “When opening a claim, ensure latest claim is opened as hail/wind as it broadens the scope for approval. We are seeing 4 out of 5 claims being denied on the basis of sun damage and/or manufacturers defect. These are not viable excuses for your insurance to deny coverage a) sun damage is typically secondary damage due to severe granulation loss and b) existing coverage is based in existing materials if there is a manufacturer’s defect and insurance should still cover the repair/replace and have them go after the manufacturer for actual cash value or replacement cost. When opening a claim you are being asked to cover a percentage of the repairs. This is new and check your policy as most are written as 100% actual cash value or replacement cost. Adjusters: when opening a claim, ask if the field adjuster will be an employee of the insurance company, contracted adjuster or a contracted adjustment company. The two latter work for the insurance company and so far all denied claims are coming from the latter two”.
Murdock says that the most important thing to remember when submitting a claim is that most of the roofs carry product that hold above 25 year manufactures warranty, ensure the repairs are completed using a comparable warrantied product. “We are seeing some insurance companies using cost savings measures and replacing with a 10 year product”, says Murdock.
So what can you do if you have submitted a claim, it has been denied or comes in with less coverage than you expected. Murdock gives this advice, “The biggest stress is navigating the process and knowing what coverage is in place. Brokers are great sources of information to assist through the process. If you are not satisfied with the settlement you are offered the homeowner is allowed to contest it. Instead of signing off on a Proof of Loss, take the time to notarize it and don’t give up. Statute is 2 years from opening a claim to the insurance company closing a claim. If they have closed the file it can be opened without new deductible within the statute. (Homeowners pay premiums for coverage and the insurance companies are financially tapped for funding, they will deny at all costs as we are seeing.) It may be a fight to get your claim approved and it will take time but peruse an approval at all costs this is what we pay premiums for, coverage not denial”.
It should be noted that replacement product for a roof should hold a wind rating of 100km/hr for Chestermere. Hail damage is secondary to wind damage in our area and hail claims coverage is based on indentations and broken shingles, wind granulation loss, sun damage bubbled shingles, and manufacturers defect cracked shingles.
Here’s a fun fact – there are still over 300 active claims that have been unattended by insurance in Airdrie from last summer’s freak hail storm. Over 10 that Alison Murdock is currently working on, the roofs were replaced with what insurance called ‘comparable product’. Homeowners have now had to re-opened claims due to severe hail damage. Be educated as to product and coverage and the reason for denial of claim
Another fun fact is that your premium increase is simply financing a new roof and / or repairs over the next 5 years. Coverage for damages should never be denied. This is what homeowners pay for.