Archive for the ‘Insurance Claims’ Category

WHEN IS A DAMAGED CAR OR TRUCK CONSIDERED A TOTAL LOSS?

Friday, May 10th, 2013

I frequently receive calls from the owners of damaged cars or trucks who ask when must a vehicle be considered a total loss?   In an effort to pay less on the claim, unfortunately some auto insurers will attempt to have extensive damage repaired instead of having the car totaled.  These owners are concerned that even with competent repairs, their vehicle will never be as it was before and that the resale value of their vehicle will also be adversely affected.

Under Indiana law, specifically Indiana Code 9-22-3-3, if the cost of repairs to a vehicle is more than 70% of its fair market retail value before it was damaged, then the vehicle must be declared a total loss.  If the vehicle is a total loss, then the owner is entitled to receive the retail value of their vehicle before it was damaged, plus state sales tax.

As a practical matter, if the repair estimate is close to but slightly less than 70% of the vehicle’s retail value, the owner can often convince the insurer to still total the vehicle by pointing out that the insurer also owes compensation for the diminished value of their vehicle because of collision damage.  When a vehicle has significant property damage, the diminished value of the vehicle can be substantial.  I have written a blog article previously regarding diminished value claims that you can read for more information.

If you have a significant property damage or personal injury claim, call the office of James F. Ludlow, Attorney at Law, P.C. to discuss your legal rights. My firm can be reached toll-free at (877) 897-9466 or by filling out the simple form on the Contact Us page.

 

 

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What Do You Mean I’m Not Covered? Claims Against Your Insurance Agent

Sunday, June 10th, 2012

It’s difficult to watch any sporting event on television these days without being bombarded by ads from insurance companies that have sponsored the event who claim that their agents will act “like a good neighbor”, “protect you from mayhem”, and “be on your side.”

But the fact is that most people never actually read their insurance policy until they actually have a claim, but instead rationally assume that their insurance agent knows what insurance coverage they should have and that they in fact have this coverage.  Unfortunately, this is not always the case.

Although many laws in Indiana favor the consumer, insurance law regarding the duties and obligations of agents does not.  In Indiana, an agent has no legal duty or obligation to recommend specific coverages for their customers unless the insured can provide evidence of an ongoing “special relationship” with the agent.  This “special relationship” has been defined by Indiana courts as consisting of evidence of a long standing relationship, reliance upon the agent, and a representation of the agent’s expertise that the customer relies upon.   Merely telephoning an insurance agent and asking what coverage they recommend is likely not enough to establish an obligation on behalf of the agent to properly advise the customer.

In addition, if the agent fails to recommend or provide coverage for their customer, a two-year statute of limitations for any legal claim against the agent starts to run when the policy is delivered to the customer rather than when a claim arises.  A common complaint that I have seen against an agent arises from a lack of sewer back up coverage on a homeowners or business policy.  This is very inexpensive coverage that insures against a backup of sewage into a home or business from a city sewer system.

One would think that such coverage would be part of every homeowners or business coverage since it is so inexpensive.   However, if an agent failed to recommend or provide this coverage, a two-year statute of limitations on any claim against that agent would begin to run when the policy was delivered, rather than when a claim arose and it was discovered that no such coverage was provided.  In addition, if there was no “special relationship” with the agent, the agent would have no legal duty to advise their customer that they should have this coverage.

So how can one protect oneself?  First and foremost, the best advice is to read your policy when you receive it, especially the declaration page where types and amounts of coverage that are provided by the policy are listed.  If you don’t understand something, call your agent and ask them to explain it to you.

Secondly, do some creative thinking about what claims are the most likely to happen, and ask your agent if you are covered for this.  For example, if the pipes in your house freeze and burst during the winter and flood your house while you’re on vacation, what damage is covered by your policy?

If a tree limb falls on your house, are you covered for this damage? I’ve seen policies that provide coverage if a tree falls because of wind, but excludes coverage if a tree limb falls due to ice.  What damages are covered by flooding from heavy rain is also a good topic to discuss with your agent.  If in doubt, ask!

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Indianapolis Personal Injury Attorney Discusses Liability Umbrella Insurance Policies

Monday, June 20th, 2011

I was recently consulted on a case in which a 45-year-old man was killed while riding on a motorcycle when a 21-year-old young woman ran a red traffic light and struck his motorcycle.  At the time of this crash, the young woman only had $100,000 in liability insurance, and the motorcyclist only had $100,000 in Underinsured Motorists coverage.

As mentioned in my recent blog on the topic of Underinsured Motorists coverage, unfortunately the amount of Underinsured coverage that the man had was “set-off” or reduced by the amount of liability insurance which this young woman had, thus resulting in no additional coverage for the man and his family.   However, if the man had purchased a Liability Umbrella policy prior to this crash, then there would have been an additional $1,000,000 in coverage to compensate his surviving family.

A liability umbrella insurance policy is a policy that provides additional liability coverage in an amount not less than $1,000,000.  When a Uninsured/Underinsured Motorists rider is added to the policy, $1,000,000 of Uninsured/Underinsured Motorists coverage is also included.  The typical cost of such a policy is usually between $300-$400 per year, or only approximately $29 per month.

Despite the relatively small cost of such a policy, for some unknown reason many insurance agents do not strongly recommend such a policy, even when their insured has assets and/or a family to protect.  However, if tragedy strikes, these additional monies can make all the difference in the financial well being of the surviving family.

If you have questions regarding what insurance coverage should be included with your auto policy, feel free to give my office a call for a free consultation. As an Indianapolis personal injury attorney, I provide a free initial consultations to help people understand their legal rights when injured in accidents.

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Incontestability Of Life Insurance Policies in The State of Indiana

Tuesday, April 5th, 2011

I had a recent case where an individual had passed away from a heart attack.  Although this individual had a life insurance policy at the time of his death, his widow was having difficulty persuading the life insurer to pay the policy proceeds. Although her husband had faithfully paid premiums on this life insurance policy for many years, after receiving notice of his death and a claim made by the man’s widow for the policy benefits, the life insurance company suddenly became very interested in whether the life insurance application that had been filled out 6 years previously had disclosed all of her husband’s health history.

In fact, when the widow made a claim on the policy, the life insurer asked that she provide them with the name and address of every doctor that her husband had seen for the past 15 years.  While the widow had nothing to hide, she had the uncomfortable feeling that this insurer was going to go though her husband’s medical records with a “fine tooth comb” to see if there was any way they could avoid paying the claim.

Fortunately, under Indiana law, a life insurance company only has two years after a policy is purchased and remains in force to contest anything that was stated in the application.  This is called an incontestability period.  Thus, after two-years, Ind. Code 27-1-12-6 states that a life insurance company may not contest anything that was stated in the life insurance application.  After pointing this statute out to the life insurer in this case, they quickly paid the policy proceeds.

If you or a loved one is being given the “run around” by an insurance company, give me a call for a free consultation regarding your legal rights.

Contact Indiana Life Insurance Claims Attorney James F. Ludlow

Many people don’t think they can afford an experienced insurance litigation attorney, especially when they may have thousands of dollars of unpaid medical bills or are struggling to pay their mortgage because they have been unable to work because of an accident or an untimely death of a loved one. To address this worry, I offer free consultations with no obligation whatsoever. My firm works on a contingency-fee basis, and I don’t get paid unless I obtain a successful recovery for you.

If you were seriously injured in an accident because of another person’s negligence, contact James F. Ludlow Attorney at Law to discuss your case. Call me toll-free at (877) 897-9466 or submit the simple form on the Contact Us page.

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