Coming Closer to the Day Of Justice For All…

Tom Gallagher held town hall meeting in hurricane-affected areas in Florida to hear from citizens, mainly about insurance-claim woes. Some of the saddest stories I heard were homeowners who claimed their houses were a total loss–but their insurance companies would not pay. These folks are desperate and I kept thinking about the injustice of it all.

Some town hall meeting attendees suggested suing insurance companies. One of the affected homeowners explained that even if he did sue, the attorneys would take 30- to 40-percent–and he still wouldn’t have the money to rebuild. Is this justice?

I am unfamiliar with the details of those claims so I cannot speak on their merits. However, I have many thoughts on the subject. Certainly I cannot fault the homeowners’ frustration and angst.

I would, however, like to set the record straight for agents and for the public. The vast majority of Florida’s hurricane claims are being handled–and handled well. Despite the unbelievable confusion of having three hurricanes hit the same area and despite the Citizens Property Insurance fiasco–we are having proper closure on claims. The experts say 94 percent of all claims have been settled. That’s a heck of a figure–it shows the system works.

I understand total claims are somewhere around $21 billion, with a majority the 1.6 million claims now closed. This is an unbelievable feat. I take my hat off to the entire insurance industry, our clientele, our government and to a whole system that was never geared to this type of catastrophe. Unbelievably well done! And policymakers are making sure that proper reforms are in place if, God forbid, it happens again.

Injustices abound
But some of the remaining real tragedies make me wonder about the justice of it all. I have pursued justice my entire life and can honestly say that I have found justice to be elusive — not just in this past hurricane season, but in all facets of life.

I’ve heard of many injustices. One of my clients left her husband in the middle of Hurricane Jeanne. The insurance company paid the claim to her husband, who signed and cashed it–leaving his wife without a roof or a house. How do we reconcile this? Is this justice?

How about the contractor who signed a contract at one price and charged another? How about some of the senior citizens who paid fortunes to have trees removed and had half a job done? How about the losses that just aren’t covered by insurance? How about the neighbors who died helping others? How about some of the people who received REMA benefits with no perceptible need for the benefits? Where is the justice?

Don’t forget the agents
And let’s not forget the agents who had massive books of mobile home insurance that are now being cancelled? How about their clients who are now having a hard time finding a new policy? How about the agents now working night and day to find new carriers for them? Where is the justice?

Yes, there are outstanding claims in which houses were completely destroyed and the insurance companies claim that the damage was due to improper construction. I have one of those–and it breaks my heart. Should the house have been insured to begin with? Who knows?

Suits aren’t the answer
Suing isn’t the answer. Mediation and arbitration are the correct ways to go. Agents need to learn to say those words to a client and lead them in that direction; and, just as important, insurance companies need to listen to these hearings. That’s the way to true justice.

There were many martyrs and many heroes in the 2004 hurricane season–and I praise them all. But it’s time to keep moving. My dad once said, “When you laugh, the whole world laughs with you; and when you cry, you cry alone!” How true.

When the insurance companies and the public finally realize that the insurance policy is meant to protect against specified major catastrophes and that there are no exceptions to every rule–we will come closer to the day when “Justice for All” will prevail. In the meantime, I beg each and every agent to study the insurance contract as much as possible–and to share the information with clients. It’s your job–and everyone will be better informed.

Ronald N. Silverman, CIC, CISR is an agent, trainer, and consultant and works closely with the Professional Insurance Agents of Florida. He can be reached at silverr2@cfl.rr.com or 386-860-0001.