Posted On: May 26, 2006, 1:16 pm CDT

Posted By: Roger Poe

Good Hands, or Slight of Hand?
Good Neighbor, or Clever Neighbor?

5-26-2006

Homeowners in Texas got a surprise this month that show's spring can indeed 'come in like a lion', instead of a lamb.

Their insurer of choice, Allstate, recently announced a decision, 1 week before the 2006 hurricane season officially starts, to drop wind / hail storm insurance coverage to 65,000 of their present customers starting September 15, 2006, which date is in the middle of hurricane season.

Many of those affected are hurricane Rita victims.

In fact approximately 35,000 Southeast Texas Allstate claimants are estimated to be part of those whose wind / hail coverage is being dropped.

This announcement was very unsettling for many, in part because, common roofing damage that major manufacturers, construction contractors and other insurers readily recognize, Allstate, and State Farm Insurance, have generally dismissed as being non-damage to their hurricane Rita affected client's properties.

Pilot Claim Service is the primary claims adjusting firm Allstate hired to assess damages and adjust their client's losses, while State Farm uses both staff and independent adjusters.

One of the two major forms of damage being dismissed is where high wind carried debris created an abrasive action on fiberglass shingles outer protective granule component, which component was taken off in varying degrees, even down to the structural fiberglass mat.

The other forms of damage is where wind lifts and breaks the tar sealant bond that keeps one shingle locked down to the shingle below it, and then wind carried debris contaminates the tar tabs, or debris was forced under shingles, 'shimming' them up without breaking the bond, not allowing shingles to thermally seal and become wind and water tight again.

All forms of damage harm shingles wind resistance and functional longevity, and cancel any factory warranty and it's inherent financial value, and leave the home, and inhabitants, vulnerable to future financial and personal harm.

Interestingly, many of their clients will find coverage in the TWIA (Texas Windstorm Insurance Assciation) windstorm and hailstorm insurance pool.

More interesting is that the TWIA will require all potential TWIA policyholders property's to be inspected for insurability.

Those who's roof's were wind damaged, which damage Allstate and State Farm denied as being damage, can be left holding the bag to repair and/or replace their roof before they will qualify for TWIA coverage.

Those who's roofs were NOT required to be TDI (Texas Department of Insurance) engineering standard approved may be faced with having to replace their brand new roof's so as to qualify for the Texas Department of Insurance WPI-8 certification, that TWIA requires for issuing policys.

In effect, Allstate's / State Farm's strategy appears to some to be a deceptive move to [invisibly] shift the financial liability Allstate / State Farm dismissed, back onto to the shoulders of their clients and/or a unsuspecting new owner of a newly purchased [hurricane Rita damaged] property, that the previous Allstate / State Farm covered owner, in good faith, can believe is "undamaged".

Or, the damaged property is claimed to be [normal weather] damage, months or years down the road, which [normal weather] damage C.L.U.E. can help track, and [synthetically] verify.

The C.L.U.E. (Comprehensive Loss Underwriters Exchange) datatbase, used by insurers, mortgage companies and others to help determine the physical history of insured properties, and loss claims of insured clients, can also be referenced by potential insurers or others so as to "justify" that property owners need to repair their property before it is insurable .

Some feel Allstate and State Farm have defrauded the general public by their 'roof damage is not roof damage' philosophy schema.

An investigation by the Texas Department of Insurance, and help from the FBI, is being sought.

Along with the dropped coverage, Allstate has stated that shifting windstorm / hail coverage would reduce premiums by 40% - 70%, deductibles would rise from 1% to 2%, and rates would also increase.

Why deductibles and rates should go up, when major risks are no longer a risk, and higher deductibles will mean less [average loss claim amounts] will be paid by Allstate, are acccounting questions Allstate, or others, should be willing to prove in plain language and common math, to the general public, are appropriate.

Could be, like Enron, their CEO's and other associates, have some actuarial, accounting and contingent profit gathering techniques, veiled by claim adjusting practices, to explain.

rogerpoegc@yahoo.com

P.S. A personal conversation (5-24-2006) with a TWIA (Lou Cusano) verified that the (TDI Required) inspection process for potential TWIA coverage, will shift financial obligations to repair / replace [hurricane Rita damaged] fiberglass shingled roof coverings back onto the [current property owners'] shoulders.

(TWIA General Manager Jim Oliver is also being contacted for verification of TWIA / TDI / WPI-8 inspections that affect current and future Allstate / State Farm / other insurer consumers).

Even mortgage companies, that research the CLUE database, or inspect a property on-site, can demand their clients perform / pay for repairs that insurers actually owe for.

Properties not structurally sound, creates financial risk for a mortgage company, who can call in a loan if the risk continues to go on unrepaired.

Under threat of losing their home or business, one's can be unfairly manipulated / forced, from different directions, to pay for legitimate insurance covered losses that others owe for, and be none the wiser that they have been duped in a very stealth-like manner.

Pilot Claim Service, that has an adjusters 'Help Center' by Toy's or Us in Beaumont, and a strong history of recognizing common windstorm damage, appears to have 'knowingly ignored' Allstates new 'damage is not damage' "philosophy".

When Allstate and State Farm adjusting representatives were asked for engineers report's that supported and proved their claims, neither could provide such documentation.

Could be because;

What engineer is going to place their professional seal, reputation, livelyhood and personal freedom, on the line, by pretending common, blatant and historically consistent wind damage "fingerprints" left on fiberglass shingles, 'is not damage to the shingles' somehow, or a craftmanship / manufacturing flaw?

P.P.S. Our own client files prove that such synthetic loss claim adjusting conduct exists throughout South East Texas.

__________

Suggestions for consumers and investigators-

1. Contact various credible Roofing, Builder and General contractors in the Beaumont Texas, and surrounding, area.

Ask if the damage described above is real shingle damage, and if their meetings with their client's adjusters show that blatant wind damage has been denied.

Make detailed notes, and date them.

2. Contact your agent after you have spoken with credible contractors. Explain the 'damage is not damage', and shifting of liability issues / concerns.

2. Call TWIA - the TDI to verify their property inspection / condition requirements before TWIA will insure a property.

3. Have Allstate / State Farm produce a credible engineers' report that disproves historical wind damage to fiberglass shingles.

4. Contact your mortgage company, before they contact you, as explaining the issues carefully may help the mortgage company to review if Allstate and State Farm insured clients were treated differently per other insured clients experiences.

5. Contact The (Beaumont Texas) Examiner, and the Texas Department of Insurance and The Texas Windstorm Association with your results.

Truth always has a way of surfacing, and surfaces faster with a little help from a lot others.

ELK Corp. 2-2006 Technical [Storm Damage to Fiberglass Shingles] Bulletin is available for research purposes.


Supplemental Consumer Protection Knowledge

Farmers - Off The Hook Forever?