Expert: Richard - 5/9/2006

Question
I had a house fire that caused smoke damage.  The fire was in November, 2004 (the previous adjuster had quit and the file sent to the insurance company as closed, it has taken this long to find out what happen to the claim).  We were out of our home for three months.  The fire was caused by a short near the heat pump, which pushed smoke from the fire through the house.  Through the contractor our insurance adjuster allowed replacement of carpet, lamps, ceiling fans, painting of walls and ceilings.  On a walk-through the adjuster said he would also allow replacement of the Lazy-Boy recliner and sofa bed couch because of the corrosion damage.  He brought with him a forensic engineer to inspect the heat pump.   Five weeks later, he called me at work, quoted an amount that would allow him to close out the claim and said that if I would give him the OK he would have the insurance company cut a check.   Since the amount of money was about 1/3 of what I had expected.  I asked for him to send a letter describing his assessment and a copy of the report from the forensic expert, as I was neither prepared nor able to discuss this matter while at work.  He reported that certain items were disallowed because he could not find supporting evidence that the smoke would cause corrosive damaged and asked us for supporting evidence.  He said that the corrosion on the furniture is consistent with our region and climate.  He also claimed that the forensic expert only gave him an oral report and the information he relayed is from his notes so he could not give us a copy of the report.  According to his notes the forensic expert said the corrosion is typical for unit 12 years old.
After the adjuster asked if I had any more evidence to support our claim that the smoke had caused this damage, I sent him information about how corrosive smoke is caused by burning PVC pipe.  I included a picture of the trim work to show that “myâ€? smoke was of this corrosive nature.  (The picture shows a bleaching effect of the trim work consistent with the density of the smoke - the trim is lighter near the ceiling but it’s original color near the floor).  I also included a picture of a typical metal object (stove hood) that was corroded.  (Both these items were allowed for replacement)  I pointed out that my home had always had heat and air so the climate should not be a factor.  I claimed that the 2 pieces of furniture should be allowed as they shared the same continuous living area as other items that were allowed.  
I provided statements from our heat pump provider and the technician that cleaned the housing (both recommended replacement) as well as invoices showing upkeep and parts replacement (the condenser and blower are only 2 years old).  This information was shared with the previous adjuster and should had been available for their forensic expert analysis.
He responded that the items allowed were because the insurance company desires to find an agreeable settlement without agreeing that the items were conclusively damaged as a result of the smoke. He also said that a massage chair and 2 paintball guns (that he allowed in his first letter) were doubtful for coverage because he suspected that I had not made reasonable efforts to protect my property.  And should I not agree to the settlement he would release it to the insurance company saying that we refused settlement, releasing their involvement.  He only addressed the furniture issue by saying our cleaning contractor did not indicate extraordinary cleaning procedures and we did not have significant PCV pipe burn.  Total disputed claim is about 9,000.  
It seems unethical that he allowed items while he was in my home and five weeks later refused them, asked for supporting evidence of a claim and then, when it is provided, ignored it.  I definitely detected a threat when he implied that previously allowed items may be disallowed.   A lawyer said that it would not be worth it to hire him to contest the disputed amount of the claim.  I also have the option of hiring a public assessor and would have to split the cost with the insurance company of a judge and 2 assessors.  The disputed amount is probably not enough to cover this expense.
Bottom line is I have no interest in being “rightâ€? if the result of this fire is going to cost me even more money.  
If I do not agree, and it goes back to the insurance company do we forfeit the offered settlement?  And do I have to start from scratch?  Do I have the authority to view the forensic report?
Any guidance would be appreciated!


Answer
Hi Conni, If the adjustor told you that the insurance company offer was a one-time one then you might have a problem getting them to keep the offer on the table.  I suggest that you make copies of all of your proofs and contact as many agencies as you can to make as much noise as you can.  Your State Dept. of Consumer Affairs, your State Attorney General's Office, the Better Business Bureau and your State Insurance Dept. should get copies of your complaint ans proofs ASAP.  You will be surprised at how fast you get responses from those agencies and how quickly you will hear from the insurance company in this matter.