Getting insurance after a crash

Discussion in 'Lessons Learned' started by letadlo, Aug 17, 2019.

  1. Rushie

    Rushie Pattern Altitude

    Joined:
    Jun 21, 2006
    Messages:
    1,972
    Display Name:

    Display name:
    Rushie
    We ran into this roof thing. We just bought a house that is only 12 years old. Our insurance company said they will insure us but will limit the policy’s roof coverage because “it is so old”. At the same time the house we just sold, the buyer backed out because their insurance company was going to charge them a high premium because the roof was old, although that one was 20 years old. When we bought that house three years ago it was not an issue, so apparently roofs have become an issue just recently. One agent told me it was because they had a lot of storm damage claims last year.

    This is going to have a bad unintended consequence. If insurance companies are requiring roof replacement at 20 years, people are going to put the cheapest shortest life shingles, because why buy 30 year shingles if the insurance company is going to make you rip it off at 20 years?

    Also about finding ways not to pay: We are looking to buy long term care insurance and hearing about how the companies try to get out of paying when you have a claim. I am going to consult with an insurance lawyer to look over the policy before we sign, because those policies are a big deal; expensive premiums, and when you need long term care later when you’re old that’s the last thing you need is the company to not pay.

    But we had a great experience with our homeowners when our house had a pipe leak. They paid for it all without even blinking, and kept us as a customer without even raising our premium. I asked one of the reps why? And she said “because the leak was not your fault. If you had done something to cause the loss, such as smoking in bed, that would have been different. But you had a fixture burst that you could not have foreseen, therefore you are no higher risk than normal for another event. Plus you have been our loyal customer for 40 years, that helps a lot.”

    In fact, they even covered our new house as an exception because they don’t cover any homes in our location (within a certain number of miles from the coast). Again, she said it was because we had been with them 40 years with all our home, car and umbrella insurance with no claims except a couple of windshields and one car vs deer. (Until the $50,000 plumbing leak that is.)
     
    Last edited: Nov 29, 2019
  2. weilke

    weilke Touchdown! Greaser! PoA Supporter

    Joined:
    Jan 26, 2010
    Messages:
    13,243
    Display Name:

    Display name:
    weilke
    Not unreasonable. Tar shingles get brittle as they age. We had a hailstorm a few years ago. Neighbor across the street had a new roof put on earlier that year and suffered no damage. My roof was at 15 years and pieces of shingles were coming off from the hits. I was heartbroken that the insurance Co had to buy me a new roof ;-)
     
  3. Rushie

    Rushie Pattern Altitude

    Joined:
    Jun 21, 2006
    Messages:
    1,972
    Display Name:

    Display name:
    Rushie
    I think threatening to cancel the whole policy is a bit nasty. They could just renew with an exception not to cover the roof, or damage from leaks there-from? It’s like I said, forcing you to do the roof today is going to be like, fine, I’m going to put on the cheapest POS roof possible.
     
    Skyrys62 likes this.
  4. Skyrys62

    Skyrys62 En-Route PoA Supporter

    Joined:
    Apr 5, 2017
    Messages:
    2,601
    Location:
    KY
    Display Name:

    Display name:
    Meet the Fokkers
    In his case, they didn't even ask how old it was, they just called him and said that. Again, this is according to him, but I don' think he would be making it up.

    couple more scenarios:
    Someone backs into our car. Their insurance paid.
    Some ran stop sign, hit us. Their insurance paid.
    Our insurance dropped us. Said it was two 'incidences' on our record. (State Farm btw).

    Hurricane Hugo made it's way up through here.
    Some roofs, trees, fences, etc. damaged.
    Allstate tells many folks they are not covered, because they didn't have "hurricane" coverage.
    After some lawyer/newspaper talk, they ended up paying (at least those who threatened). I think it was technically downgraded to a tropical storm or something, but Allstate was definitely trying, and succeeding in some cases.

    We can't actually group all insurance companies together, as some are better than others...but there are a lot of them doing unreasonable things IMO.
    12 year roof?
    come on...

    edit: apologies to OP for somewhat thread drift.
    Currently don't own yet, but I do carry renters insurance for now, as a recent subrogation against a renter cost him a lot of money after he geared up a Cutlass. It also shut down the FBO for months as his rates went into another galaxy. He also had a very hard time finding reasonable coverage, but eventually did.
    I don't know if the FBO losses were included in the subrogation or not.
    He was found to be at fault for the gear up, not a mechanical failure.
    Good luck to you. Hopefully you can find coverage and fly again soon.
     
    Last edited: Nov 29, 2019
  5. weilke

    weilke Touchdown! Greaser! PoA Supporter

    Joined:
    Jan 26, 2010
    Messages:
    13,243
    Display Name:

    Display name:
    weilke
    State insurance law is funny. They may not be able to write an exemption for the roof into the policy.

    But yes '50 year shingles' are a waste of money if you live in thunderstorm country.
     
    TCABM likes this.
  6. Rushie

    Rushie Pattern Altitude

    Joined:
    Jun 21, 2006
    Messages:
    1,972
    Display Name:

    Display name:
    Rushie
    Ah.... didn’t think of state law, you’re right.
     
  7. flyingron

    flyingron Touchdown! Greaser!

    Joined:
    Jul 31, 2007
    Messages:
    17,334
    Location:
    Catawba, NC
    Display Name:

    Display name:
    FlyingRon
    Bullpoop. They can and do unless they're operating in a state that mandates that they extend coverage. In NJ, because the legislature was mainly staffed with personal injury lawyers, about a third of the state was uninsured and moved into a state run pool. Of course, it was financed by all the other insurable drivers in the state. My insurance dropped 80% when I moved out of that corrupt state.
     
  8. Rushie

    Rushie Pattern Altitude

    Joined:
    Jun 21, 2006
    Messages:
    1,972
    Display Name:

    Display name:
    Rushie
  9. 1RTK1

    1RTK1 Cleared for Takeoff

    Joined:
    Sep 10, 2014
    Messages:
    1,384
    Location:
    Central Left Coast
    Display Name:

    Display name:
    Ralph
    Time to find a more reputable company/agent if you are having those types of problems.
     
  10. Jamie Kirk

    Jamie Kirk Pre-takeoff checklist

    Joined:
    Aug 7, 2018
    Messages:
    467
    Display Name:

    Display name:
    JamieK
    I don’t have insurance to cover to plane. I have insurance so if something goes wrong my family isn’t living in a cardboard box after.
     
  11. bluerooster

    bluerooster Pattern Altitude

    Joined:
    Nov 28, 2011
    Messages:
    1,677
    Display Name:

    Display name:
    shorty
    Not bullpoop, one company may deny, but there will be a company that will sell you a policy. And what's neat is that under SR-22, the same underwriter that denied your request for insurance, may well end up being the one to write the policy anyway. ;)
     
  12. flyingron

    flyingron Touchdown! Greaser!

    Joined:
    Jul 31, 2007
    Messages:
    17,334
    Location:
    Catawba, NC
    Display Name:

    Display name:
    FlyingRon
    Which is not what you said. You said "underwriters can not deny coverage." That's patently false by your own admission. And I disagree on the SR-22 point in a lot of states. SR-22 doesn't change your insurability or even the premium, other than a nuisance fee. People who need SR-22 policies just tend to be worse risks to begin with.

    Either that or you don't know the difference between an agent or underwriter.
     
  13. Geosync

    Geosync Pre-Flight

    Joined:
    Jul 31, 2016
    Messages:
    52
    Display Name:

    Display name:
    Geosync
    Aviation insurance is nothing like auto or health insurance. Everyone bases their assumptions about the overall industry on these common sub industries, whereas aviation specific insurance is a small industry and very cutthroat. If a claim is denied without just cause, the insured will just move on to another company. If an aviation insurance company willfully fabricates evidence against the insured, the insured, who usually has a fair amount of money and thus more savvy than the average consumer, will sue and the state insurance commission will sanction them. There are no deep pocketed aviation insurers passing envelopes of cash to politicians at smoky country club bars.

    It is difficult to stay profitable in aviation insurance. If you ball up your new $400,000 Cessna 182 which you were paying $1,000 a year in insurance on, the insurance company needs 400 years to make their money back on that. If you and a passenger were killed in that crash, well now the insurance company is paying at least $1,000,000 in wrongful death payouts on top of that $400k for the aircraft. Yet aviation insurance companies pay claim without much fuss, unless the insured’s violations are egregious(flying drunk/no IFR ticket in IMC, etc). So it’s up to underwriting to make sure they write clean accounts, because once the deal is done, they will almost always pay out when the claims happen.

    If you can provide an example of an aviation insurer denying a LEGITIMATE aviation claim, please share.
     
  14. Rushie

    Rushie Pattern Altitude

    Joined:
    Jun 21, 2006
    Messages:
    1,972
    Display Name:

    Display name:
    Rushie
    I thought the conversation had expanded to insurance in general. I wasn't trying to imply aviation insurance was, or was not, as bad as other categories, but I'm glad to hear it isn't!
     
  15. hindsight2020

    hindsight2020 En-Route

    Joined:
    Apr 3, 2010
    Messages:
    4,365
    Display Name:

    Display name:
    hindsight2020
    1k/yr for 400K hull? yeah right. More like 4k/yr.....
     
    Checkout_my_Six likes this.
  16. DesertNomad

    DesertNomad Pattern Altitude

    Joined:
    Jul 5, 2013
    Messages:
    1,821
    Location:
    Northern NV
    Display Name:

    Display name:
    DesertNomad
    I pay $1200 for $170K hull, so $400K hull should be $3K or less.