The House The Fungus And The (Safeco) Insurance Company Ate
I feel so lucky that I got to eat dinner at what used to be Walter and Judy Moore's beautiful home -- before the fungus and the insurance company (Safeco) wrecked the place.
Walter, who is an attorney, with Judy, has been fighting "Safeco's bad faith and unfair competition" in court. The story is rather amazing and the lesson about what you may really be buying with homeowner's insurance -- in Walter's words, "a false sense of security" -- is instructive:
Walter and Judy's SafecoLitigation.com site is here.
Wow. That's the financial sinkhole that nightmares are made of.
I keep wondering if there isn't a way to pre-treat the wood so that fungus can't feed on it. Of course, this wouldn't do this family any good, but it's certainly something for homebuilders to consider. Preventive measures might also be in order for their neighbors, since the stuff spreads.
Patrick at December 7, 2011 12:29 PM
The best is that Safeco is claiming that they only cover $10,000 toward the house, and that should have been obvious to anyone reading the contract.
When I got insurance for my car, they asked what kind of car and how old it was, and based my charge on the estimated coverage needed for the worth of the car. Walter said it at the link, you get insurance for the entire worth of your home, not just a (tiny, tiny) percentage.
Jazzhands at December 7, 2011 1:42 PM
Unpopular as this may seem, Safeco is actually in the right here. They are abiding by the contract.
I always tell my clients "Read the policy! Ask me questions about things you don't understand."
I feel terrible for these folks, but if the ruling goes against the company, expect to see your homeowners premiums skyrocket.
Sometimes awful things happen, and there's really no one to legitimately blame.
Pete the Streak at December 7, 2011 2:20 PM
Amy Alkon
http://www.advicegoddess.com/archives/2011/12/07/the_house_the_f.html#comment-2838337">comment from JazzhandsTheir place was just beautiful, too. Gregg and I had dinner over there (Judy is an amazing cook, and even made my favorite dessert, and made it really well. It's moeulleux...little chocolate hockey puck soufflés that are runny inside.
(You get the best one in Paris at an unpretentious little cafe, Cafe des Vieux Colombiers, at rue de Rennes and rue des Vieux Colombiers, in the 6th arrondissement, around the corner from Monoprix. I know because I tested them all over Paris. Don't know if it's still great, but it's worth trying!)
Amy Alkon at December 7, 2011 2:42 PM
Amy Alkon
http://www.advicegoddess.com/archives/2011/12/07/the_house_the_f.html#comment-2838345">comment from Pete the StreakUnpopular as this may seem, Safeco is actually in the right here. They are abiding by the contract
How the hell are they doing that?
Amy Alkon at December 7, 2011 2:47 PM
Jazzhead, actually, no, Safeco is NOT abiding by the contract. Indeed, its OWN CLAIMS ADJUSTER confirmed in writing that the purported $10,000 limit applied only to fungus remediation, and NOT to repairs AFTER the remediation.
Mrs. Moore not only read the policy but asked Safeco to clarify that point IN WRITING. Safeco did so, but then changed its position AFTER the back of the house was torn off. That's what makes this especially galling: Mrs. Moore went out of her way to get ambiguous language CLARIFIED, she got it IN WRITING, and then they STILL didn't keep their promises!
That's the kind of thing that can drive a man to use ALL CAPS repeatedly!
Anyhow, come to the trial and you can judge for yourself. It starts on January 17, 2012, in Courtroom 7 of the U.S. District Court in downtown L.A. But remember: you're not allowed to "boo" at Safeco even though they deserve it.
Walter Moore at December 7, 2011 3:32 PM
Correction: I see now it was Pete the Streak who made the comment, not Jazzhands, and that it was Jazzhands, not Jazzhead.
See, that's why we let Mrs. Moore do all the reading in this family! : )
Amy, thanks for warning people about this. It is devastating to do what you're supposed to -- buy insurance, get everything in writing -- and then STILL get screwed. Grrrrrrr.....
Walter Moore at December 7, 2011 3:35 PM
Offtopic Kyootnis
Crid [CridComment at gmail] at December 7, 2011 4:50 PM
Aw shit, that was from an Amy Alkon retweet. All of life's a circle, with a blindly-stubborn coastal redhead at the center.
Crid [CridComment at gmail] at December 7, 2011 4:53 PM
Amy Alkon
http://www.advicegoddess.com/archives/2011/12/07/the_house_the_f.html#comment-2838963">comment from Crid [CridComment at gmail]First is a Balko, second is a Manjoo.
Amy Alkon at December 7, 2011 6:38 PM
Amy Alkon
http://www.advicegoddess.com/archives/2011/12/07/the_house_the_f.html#comment-2838983">comment from Walter MooreI know Judy Moore. She's sweet to Walter but she is also tough and nobody's fool. She's exactly the kind of person who crosses her Ts and goes back to see if they're actually crossed. I know this from hearing about a project she and Walter did -- not one where there was trouble like this...but she was dealing with complicated stuff in a foreign country, and I was impressed with how she handled it.
Walter, there's a new editor at the LA Weekly, Sara Fenske, who seems fantastic (and Jill Stewart's been promoted to managing editor). I hope they'll cover your trial. I think you could make a difference for a lot of people who've been likewise screwed, but don't have the law degree or the means, personality-wise, to fight what was done to them.
BOOOO, SAFECO!
Amy Alkon at December 7, 2011 6:47 PM
I know my home owners insurance has a limited benefit for damages related to Fungus or toxic mold. The limit is either $10k or $15k lifetime benefit. To get much more than that required a special rider and it was a lot. When I shopped around I found all of them were doing pretty much the same thing. My Condo Assoc.'s master insurance plan also has limits.
I know a friend of a friend of a friend who lost their house to toxic mold. They ended up having the place torn down and disposed of as toxic waste and then selling the bare lot to pay for it.
The Former Banker at December 7, 2011 9:24 PM
There usually *are* limits for specific things (fungus / mold / poltergeists), but that doesn't seem to apply to the issue here.
First, safeco (and can you imagine a more disingenuous name?), stated (and signed off on) a dollar limit specifically for mold remediation (in this case $10,000).
And then, after seeing what was involved, decided that they would retroactively apply that limit to everything.
Here, you've got a case where even the department of insurance (hardly an insurance company hostile organization) has decided that the complaint is justified.
From the way I read this, the homeowners were okay with the idea of the limit for the fungus remediation, but when the cluefree twatwaffles at safeco decided to change the terms of the rest of their coverage, they decided to fight it.
I wish them luck. I'm a free market sort of fellow, but if you offer a service, you damn well better deliver, or every bad thing that happens to you is entirely justified.
there are some who call me 'Tim?' at December 7, 2011 10:07 PM
Amy Alkon
http://www.advicegoddess.com/archives/2011/12/07/the_house_the_f.html#comment-2839716">comment from there are some who call me 'Tim?'Exactly, 'TASWCMT?'
Amy Alkon at December 7, 2011 10:55 PM
Tim -- Great points. We found out, AFTER this video was made, that the Department of Insurance reviewed the matter, including Safeco's claims file, and concluded our complaint was "justified." Even then, Safeco refused to keep its promises.
And, like you, we agree with the free market. Companies are entitled to offer you whatever policy limits they want. BUT THEY HAVE TO DISCLOSE IN ADVANCE WHAT THE LIMITS ARE. That is the problem here: Safeco gives you documents that lead you to believe you're getting far higher policy limits for any covered loss than they really intend to apply.
That is why we have sought a permanent injunction requiring them to include this purported $10,000 limit on the declarations page. You should be able to tell, from your declarations page, what the policy limit is for any covered loss to your dwelling. Safeco, however, refuses to do even that, which tells you they want to hide that circumstance.
I wonder how many people who pay good money for Safeco insurance have lost their homes and simply been unable to fight for their rights. We have discovered that ours is the second house in our neighborhood stricken with poria; actually, the other one was an "accessory structure," i.e., a converted garage. But if there can be two buildings in one neighborhood in one year, I bet there are many more.
The "bottom line" is watch out, homeowners.
Walter Moore at December 8, 2011 7:46 AM
Amy Alkon
http://www.advicegoddess.com/archives/2011/12/07/the_house_the_f.html#comment-2841291">comment from Walter MoorePeople who don't know Walter don't understand what a good guy he is. He ran for mayor (against Sleazeaigosa) and I voted for him -- without holding my nose, and in fact, rather happily.
This case is super important, and similar to the TSA agent's demand for money from me and the way Marc J. Randazza came to my legal aid, in that Walter, with his legal chops, can go up against Safeco in a way few others can. I think he and Judy are also spending a good bit of money defending this, and also Walter isn't representing "for pay" clients while defending this case.
Please share this video. People should know -- especially those who are homeowners. Safeco may not be the only company that behaves this way.
Amy Alkon at December 8, 2011 8:05 AM
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