Insurance lessons learned from 2020

Published 11:33 am Wednesday, June 2, 2021

Rita LeBleu

Day one of what’s been predicted as an above-normal hurricane season has come and gone while some Southwest Louisiana residents are still putting houses and lives back together from last year’s hurricanes.

Kristi Tugwell and her family of four are still living in a camper in front of their Lake Charles home. Despite being one and a-half months away from moving back in, making the process an 11 ½ month ordeal, she’s pleased with her insurance company’s handling of her claim. More importantly, she’s learned a few things that could help other homeowners as they hope for the best and prepare for the worst this hurricane season.

“I’ve had four different adjusters, and I have heard a lot of horror stories, but all of my adjusters have been easy to work with,” Kristi Tugwell said.

She said she asked a lot of questions and made many phone calls, time-consuming but in hindsight, time well spent.

“I probably got on their nerves,” she said, “but they assured me they were there to help.”

Sticking with it and being tough-skinned were important, but Tugwell did something not every policy holder does. She read her policy front to back.

She did it because she refused to miss out on an opportunity to replace necessities or items that were important to her husband, to her children, down to the smallest item.

“I wanted to make sure I did everything required on my end, even those things that seemed nit-picky,” she said. “There’s a whole lot that you are responsible for.”

She agreed that making a detailed inventory list – 27 pairs of socks, three mattress covers and two laundry baskets, for instance — can be time-consuming, but those little details can add up.

“I decided for the future, it would be easier to walk in a room periodically, probably once a month and take a photo,” she said. “If your ceiling falls in, like ours did and insulation covers everything, you can look at the photo and know there was a lamp there and this was here … .”

The Tugwells made a policy change to lower their deduction and they have insured their home for more than it’s worth.

“We never thought we’d be doing what we’re doing right now,” she said. “A couple of times, I couldn’t get through to my adjuster or was in the process of getting a new adjuster and called the local State Farm office here. In a matter of moments, I found who I needed to talk to or my local agent conferenced with me and that person.”

Many area residents can’t claim a positive experience, but should do a thorough job of research before changing companies. As of March 31, 2021, Louisiana insurers had received 311,266 claims for all lines of insurance from Hurricanes Laura, Delta and Zeta, according to an article in the Insurance Journal. State Farm received 68,000 claims in 2020 resulting in $1.3 billion paid, taking the No,. 1 spot in the country.

The Louisiana Department of Insurance so far has received 1,497 complaints from Hurricanes Laura, Delta and Zeta. Grievances have included complaints about various types of residential, auto and commercial property insurance, as well as complaints about insurance adjusters and agents, among other issues.

The most common topic of concern has shifted as hurricane claims have progressed. In January the most common grievance was claim delay. By May the most common complaint topic was inadequate and delayed payment of claims, LDI reported.

Although insurers label 85 percent of those claims as closed, Insurance Commissioner Jim Donelon encourages policyholders to file supplemental claims for payment if they are dissatisfied with the amount of money they have received. Consumers can file as many supplemental claims as needed until their properties are rebuilt, subject to any time limits contained in their policies or Louisiana law.

The five insurers with the highest number of homeowners complaints are State Farm Group, who hold almost 26 percent of the market share. Federal National Holding Co. Group is number two, and market share is 3.86 percent. GeoVera is three with 1.82 percent of market share. Allstate Insurance has 10.84 percent of the market and was listed number four. United States Holding has about four percent of the market and was listed number five.

A home inventory is one thing that might help expedite insurance claims, should one become necessary. According to the State Farm Insurance website, the first step is to decide on what type of inventory would be easiest for you to create. A home inventory can be as simple as a list of all your possessions or a visual record for each item, but an effective home inventory should include both for added security. Today, there are even digital tools to help simplify the process of maintaining the list. A written inventory: A comprehensive home inventory list catalogs your belongings and should include the item description (make, model and serial number, if applicable), value and purchase date. You can create your own list using a spreadsheet or fill out a home inventory checklist that’s ready to go. A digital inventory: If you have an iPhone or Android phone, there are apps that can be downloaded to your phone, some of which are free. These mobile apps allow you to record a photograph of the item along with the description, value and purchase date. A visual record: A visual record of your possessions shows proof of ownership. This can be accomplished with a video walk-through of your home or through a series of photographs.

Don’t forget to include the items in the attic, garage and any detached structures, such as tool sheds. Also, pay special attention to your most valuable possessions, such as antiques, art, jewelry, collectibles and electronic equipment. Don’t let your home inventory become part of a property loss. Whichever inventory method you choose, it’s important to keep a copy in a fireproof safe, safety deposit box or digitally in the cloud. You can even email your inventory to your insurance agent. Sending the list has the added value of allowing your inventory to be examined by your agent to see if you need extra home or renters coverage.

Hurricane Laura destroyed large areas of Southwest Louisiana after passing through in the early hours of Aug, 27, 2020.

Kirk Meche