Contents Loss – No Proof

The Challenge:

Client insured HO Rental policy pertained to her renting an apartment in son’s home. A fire ensued which unfortunately was caused by the son improperly discarding incense. The apartment was a total loss and client paid out the maximum contents’ limits of policy (Renters) of $15,000 and Loss of Use ($3,000), $18,000 to their policyholder in good faith. $15,000 and Loss of Use ($3,000) without any supporting documentation. Client advised they paid in good faith as everything was destroyed. Insured could not provide receipts or photos of damage as she paid everything in cash and she had no photos of before and after the fire.

The Outcome:

The son’s homeowner liability carrier denied our demand based on the fact that we had no supports. After speaking with the Adverse Carrier our Recovery Specialist asserted that their denial was both unacceptable and unfair, the carrier offered $5,000 as a good faith nuisance value settlement, which they claimed was their final offer. Our Recovery Specialist tried valiantly to obtain a statement from the son to validate the mother’s contents as she paid cash for everything. A list of the contents was presented to the adverse carrier and after much discussion the case was settled for $7,000 with no supporting documents

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