If you own a home, you know that you need to get it insured. You may have heard the term, “real property” and “real property insurance” when you got your home covered, but what is it exactly? In essence, real property is real estate and the things attached to it. This could include the home itself, but also pools, other buildings surrounding your home, driveways, trees, light fixtures, etc. The best case scenario for real property owners is that everything is chugging along nicely so that insurance doesn’t have to get involved, but in many cases, owners suffer damages, and they have to reach out to their insurance company.
After Real Property Damage Loss
After suffering a real property damage loss (including water damage, wind damage, fire damage, and more), people look to their insurance company for answers. But, it’s not unusual for an insurance company to either refuse payment or claim limited coverage for a real property insurance loss. That’s right, you and many others who have paid their insurance premiums in good faith may find that the insurance company that you rely on may not be willing to deal with you in good faith. Rather, they may act in “bad faith” and try not to pay you what your insurance claim is worth. The less they pay you and insured homeowners, the more they save for themselves and their stockholders.
For example, let’s say that you purchased a real property insurance policy on your home and after a violent storm your property is destroyed. Part of the roof was blown off and is leaking, the windows are broken, and your yard is destroyed. You’ve suffered tens, or hundreds of thousands of dollars in damage and your insurance company says that you don’t have the proper coverage to pay for your loss. What are you going to do?
Document the Damage to Your Real Property
The first thing you do is take detailed pictures of all damage caused by the storm. It’s better to take too many pictures than not enough. Then, make sure that no further damage is caused to the property through your own negligence. Cover the roof and board up the windows. Document everything that you do. In addition, before suffering any loss you should take videos (you could use your smartphone) of your land, buildings and structures, and anything else that you have insured. Then, when you compare the original video with the one you take after the loss you can show the condition of the real property before it was damaged. Every few years or so, take new videos so that you have up-to-date ones in case of loss. For safekeeping, email those videos to yourself so they can be easily retrieved at a later date.
Review Your Real Property Insurance
Second, read over your insurance policy and try to get a good understanding of what coverage you do have. If you are like most people, you won’t understand the policy but it’s important that you try. Find someone who can interpret your real property insurance policy, such as an insurance agent or an insurance lawyer. It’s very important that you verify what coverage you do and do not have.
There will be times when the insurance company is correct in their assessment and you may not have much if any coverage. But, what if you do have coverage for your losses and your insurance company still won’t pay you? Then it may be time to find out if the real property insurance company is acting in bad faith.
Contact an Insurance Lawyer
If you find that the state department of insurance isn’t much help, or you simply need to consult someone who is working for you and only you, you can always contact a real property insurance lawyer. There are many benefits to having a highly-qualified insurance lawyer on your side.
Sometimes, damages for real property can be in the tens or hundreds of thousands, or even millions of dollars. The more damage you have, the more likely an insurance company will act in bad faith. They don’t want to pay out more than they have to. But you have something in your favor that most people don’t know about. An insurance company that acts in bad faith can be sued for damages. Compensation (damages) for an insurance company’s bad faith can be substantial, and depending upon the state where the damages occurred, can include the following.
Examples of Damages
- The amount they should have originally paid for the damages to real property.
- Costs that were incurred due to the insurance company’s bad faith.
- Emotional distress that occurred due to the bad faith.
- Punitive damages (if you can prove that the bad faith was reckless or intentional).
If you think a highly qualified insurance lawyer that is well-versed in real property insurance law is your best option, you can contact Smythe Law Group, Inc. We specialize in insurance law, are committed to making sure that property owners are treated fairly and that they receive the maximum amount payable under their insurance policy. Insurance companies have a legal obligation to deal with their customers in good faith. It’s our job to make sure that they do.