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Business & Commercial Insurance Claims: Phoenix Hailstorm
In October 2010, a hailstorm created extensive damage to many businesses in the Phoenix area. Many of the commercial insurance policyholders have experienced unfair delay or denial of their claims.
July 27, 2011 /Womens Interest PR News/ -- The hailstorm that damaged 150,000 roofs in the Phoenix area on October 5, 2010 has left many commercial property owners and businesses still waiting for their claims to be approved and their damaged property to be repaired. Some of the most commonly affected business buildings include:
- Office Buildings;
- Apartment Complexes;
- Condominiums; and
- Strip Malls.
The storm was a record breaker. The National Weather Service reported that the 3" diameter hail that fell in Phoenix was the largest hail ever reported in Maricopa County or the Phoenix Metro Area.
State Farm Insurance received over 13,000 roof-damage claims, with many of the flat-roofed businesses in Phoenix experiencing especially extensive hail damage. "It is one of the largest storms we've had in Arizona," a spokesperson for the insurance company confirmed.
Damage was not limited to roofs. The hailstorms also damaged exterior portions of buildings, siding, commercial air conditioning systems, and even caused interior leaking and other damage.
But not all businesses and commercial property owners are receiving a complete and timely payout on their claims, however. Many still sit in limbo due to delay or a hail claim dispute with the insurance company.
Expensive for Insurers
The insurance companies were slow in responding as they attempted to deal with massive numbers of claims. Even though insurers are aware that large-scale disasters happen, they still are not equipped to deal with the massive numbers of claims such an event produces. The storm also proved costly for their bottom line.
Allstate Insurance said its fourth-quarter profit fell 43 percent to $296 million due to an increase in disaster claims, primarily from the powerful hailstorm that struck Arizona in October.
The totals of Allstate's Arizona claims alone exceeded the cost of all the disasters the company recorded in the fourth quarter of 2009.
Problems with Insurance Claims
The Arizona Department of Insurance reported in May, 2011 that American Family Mutual Insurance Company had underpaid more than 5,000 Arizona insurance claims arising from last year's winter storm and hailstorm.
American Family had to pay an additional $1,190,657 to claimants. The average claim adjustment was $116, but some payments reached as high as $4,778.
The failure was apparently due to inexperienced claims adjusters. Other problems for property owners could be added complexity caused by the poor real estate market.
Delayed Payment and Bad Faith
With so many business properties underwater on their commercial mortgages (where they owe more than the building is worth) many insurance companies and lenders are hesitant to give a check directly to business and property owners for the repairs.
The distrust by the insurance company of some claims may go beyond simply being slow to pay a claim. Sadly, sometimes insurers can take a seemingly cut-and-dry property damage claim and escalate it into a contentious insurance property dispute.
Some commercial property owners may have their claims rejected improperly, suffer undue delay in the payment of their claims, and potentially insurance bad faith in the refusal of the insurance company to pay legitimate claims.
Big insurance companies often use these tactics to avoid full payout. They can be difficult and intimidating to work with, but an experienced insurance dispute attorney can level the playing field. Contact the experienced bad-faith insurance lawyers at Doyle Raizner LLP to discuss what options your business may have.
Article provided by Doyle Raizner LLP
Visit us at www.doyleraizner.com
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