Boston Herald Florida hurricanes show how insurers really work

[Guest guest]

Florida hurricanes show how insurers really work

By Gail Liberman & Alan Lavine/ Family Finances

Sunday, October 3, 2004

So far, New England has lucked out this hurricane season.

     But just in case Mother Nature kicks up a fuss off our shores, be

prepared to deal with your insurance company.

      You can take your cue from what happened to people in Florida. Many

have been hit by four storms this year.

     Stuart M. Address, a lawyer with Rubin & Rubin, Stuart, Fla., says he's

expecting to be deluged by disgruntled insurance policyholders soon in the

wake of the hurricanes.

     ``What you'll probably see within the next few weeks are people who feel

they're getting low-balled by various insurance companies,'' he predicts.

``Many people likely won't get what they feel their damage deserves. Or they'll

be told something is not covered due to an exclusion in the policy.''

     What to do?

     First, consider seeing a lawyer. Common-law doctrine typically favors

the insured unless an exclusion is clear and unequivocal.

     Experts cite some rules of thumb when dealing with your insurance

company:

     Examine what your policy covers, but don't give up just because

something is excluded. For instance, some insurance policies exclude mold.

However,

you might be able to argue that the cause of damage wasn't mold, but water

intrusion.

      Take photos of damaged property, but try to prevent your damage from

worsening. For example, if you have a hole in the roof, put a tarp over it. You

could run into a problem with your insurer if you need a whole new roof

because of subsequent water damage.

      Don't assume you have no insurance or an exclusion just because an

adjuster says so. Have a lawyer review your coverage to make sure.

      Avoid beefing up your claim. Many policies cancel all coverage under

the contract in the event of fraud.

      Don't forget car insurance if your auto got damaged. If dents or marks

were caused by the storm, your comprehensive coverage may pay for it.

     Meanwhile, look for special deals offered to hurricane victims. Among

them:

      Zero percent interest, no-fee loans.

      Some banks may waive CD withdrawal penalties if you need cash.

      Take advantage of tax breaks, listed at www.IRS.gov.

     

( Gail Liberman and Alan Lavine, husband and wife, are authors of ``More Rags

To Riches: Motivating Stories of How Ordinary People Achieved Extraordinary

Wealth'' (Dearborn). You can contact them at mwliblav@.... )