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  • Claim Denied

    Have you ever had an insurance claim in relation to your storage business denied? An expert provides advice on what to do if this happens to you.
    Amy Campbell
    Editor
    Inside Self-Storage
    [email protected]

    @AmyCampbell_ISS
    480.281.6091

  • #2
    I have had claims denied due to the Pollution Exclusion in a insurance policy because soap was used in the act of cleaning.

    I am still going back and forth with my insurance company on a giant claim from a storm in August of last year. They didn't deny the claim, but they missed damaged, lefts parts of buildings off the initial claim, or undervalued the damage. I was able to increase my insurance award over 50% greater than the initial one, and I may not be done yet.

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    • #3
      Because of SOAP?
      Why is that a problem, again?

      Don't put off until tomorrow, what you can do today.

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      • #4
        Originally posted by lady5563 View Post
        Because of SOAP?
        Why is that a problem, again?
        Their explanation is that soap is made of chemicals, and all chemicals are considered pollution

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        • #5
          Everything in nature boils down to chemicals, even water (H20 is a chemical formula!), so I guess they worked that out well for themselves, didn't they???
          MamaDuke

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          • #6
            Originally posted by RandyL View Post

            Their explanation is that soap is made of chemicals, and all chemicals are considered pollution
            Are you going to appeal the decision?
            Don't put off until tomorrow, what you can do today.

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            • #7
              Originally posted by lady5563 View Post

              Are you going to appeal the decision?
              This happened about 10 years ago now. I sued the insurance company, for bad faith, and a couple other things. At that point they agreed to represent me with a reservation of rights, while they brought forth a law suit asking the court for a declaratory judgement to determine if my policy should cover me for using soap.

              We settled out of court.

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              • #8
                Were you satisfied with the settlement?

                Going forward, when you may have shopped around for new coverage, did you ask this specific question, as in if you ever needed to submit a new claim, would using soap be used against you>?
                Don't put off until tomorrow, what you can do today.

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                • #9
                  Originally posted by lady5563 View Post
                  Were you satisfied with the settlement?

                  Going forward, when you may have shopped around for new coverage, did you ask this specific question, as in if you ever needed to submit a new claim, would using soap be used against you>?
                  Was I satisfied with the settlement? Not really, but that is a longer story.

                  I did change companies right away for all my insurance. Auto Owners at the time had a lot of personal and business insurance with me, and they lost all my business.

                  When I changed I did ask very specific questions about the pollution exclusion. That exclusion is in every single policy.

                  The worst part of that ordeal was the insurance company out right denied the claim, without even looking into the validity of the claim in the first place. After I sued them and they hired a lawyer to represent me we got medical records. The person visited 3 doctors about the issue in question, and none of them were able to see a problem. In fact there were historical medical records where this person had claimed the exact same issue in years past.

                  The settlement was, my insurance company defend me in the false claim, and take care of it. Then I would drop my lawsuit. They paid the guy $37,000 to settle the claim, even though we had medical records proving he was lying.

                  Here is the reason they did it. They said they would need to depose and have as professional witnesses 3 different doctors to prove the validity of the medical records. Those deposition and witness fees were likely to cost $5,000 each. Then there is attorney fees on top of that. Then the chance you may lose at trial.

                  Insurance companies make these decisions everyday, if it is cheaper to settle they often will.

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                  • #10
                    Just wow.
                    Don't put off until tomorrow, what you can do today.

                    Comment

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