I'm in VA and considered at fault for a house fire and the insurance company wants 100k.
I was in a rental for 9 years, I became complacent and my renters insurance lapsed. Probably for almost 2 years, It must have been during a credit card change and I had forgotten. I kick myself to this day and will never slip up on insurance again.
I'm into cars, so I was cutting / welding stuff in the garage, nothing illegal or against my lease. I finished my work, turned everything off and went inside to get some water. Just want you to know I have taken welding classes and am a certified ASE technician, I have a decent amount of experience dealing with hot works.
5-10 minutes later the garage was spontaneously on fire, I got the fire out with a hose, the fire department came, smoke entered the hvac system and spread to every room in the house.
First thing the department asked me on arrival is what I was doing, and I told them (foolish of me I know) what I was doing prior to me walking away from the garage.
They deemed me at fault, and the cause was from cutting and welding. Although I was not present at the time of combustion.. I tend to wonder if it was actually 100% me or not.
The landlord, insurance, and remediation company made life pretty difficult for the next few months. We had no carpets bathrooms shut down, people arriving whenever they want, making messes and causing water leaks etc.
They really stretched the claim, the landlord spruced everything up.. carpets that were 30 years old, walls that were fucked, upgraded like everything and sold the house for almost 1M, most expensive house on the block and before the fire it was the least valuable due to being a rental for 20 years.
Eventually I got out out on early termination (I paid for that) and purchased my own house because i didn't have many options for the type of stuff I do.
1 year later I'm receiving a subrogation demand, the insurance company demands 100k, it was a lousy letter , but had the report and information on it to make it real.
I hired a lawyer, he's given me advise to ignore this until it gets sent to collections or a law firm. 100k is alot of cash that I don't have, I already lost a ton between the fire, what I lost, the move, a down payment, home ownership etc.
Am I 100% screwed ? Like any savings I ever made is canned? All my assets? My house ? Everything i own? Ill be directly sent to financial hell and my security destroyed. Does anyone have any similar situations or advice for the steps to take next ?
Right now I received my second letter today, same company, alittle more formal and less typos, same demand, deeming me at fault and demanding 100K.
Every day sucks, like a cloud over my head. Ever since the fire my life has been turned upside down, and it's starting all over again with this subrogation. This is the worst kind of experience I've ever had, not knowing my future at this moment.
Subrogation letter demanding 100k+
byu/whatrwedoingnoww inInsurance
Posted by whatrwedoingnoww
3 Comments
It was not foolish to be honest, they would have figured it out. Do you really think it was not you? Or is it just that you are hoping it was not you? Most of the questions you asked here should have been directed to your attorney. Personally, I would call them and explain that you dont have 100K and see what they say. Usually they are willing to work with you, just get anything in writing as far as what they are willing to do.
You can keep ignoring it until you’re sued or you can call and try to work something out. Honestly if I was the adjuster I’d take $10k over the cost of trying to litigate and potentially getting $0. Some insurers even offer payment plans. It’s very dependent on the insurer though. Some insurers are way nicer than others.
I’ve been involved in similar situations, but every claim is different. For starters, get the entire fire report.
First, exactly how did the fire start? Just because you were in the garage using equipment doesn’t automatically make you at fault. Res ipsa loquitur really doesn’t apply. Did something fail which was out of your control? Did anyone else have access to the garage when you left? If you’re using normal caution, you may not be responsible for equipment failures.
Did the landlord know of your activities and give you permission? If he/she is okay with it, then they have responsibility for providing some safeguards. They might even be comparatively negligent.
Some states actually limit or disallow claims against tenants by landlords. The theory is that part of your rent payment was used to buy insurance, and such insurance shouldn’t be used against you.
The insurer probably paid Replacement Cost (RC), but an at-fault party only owes Actual Cash Value. If you’re considering a payment, make sure it’s based on ACV.
Yes, if sued, an attorney is needed. But few attorneys have much expertise in these matters. Maybe you could hire your own adjuster?