Thanks for tour input, guys..
He said he was working with an adjuster, and IIRC got a second opinion, but are adjusters impartial?
That sounds as though he hired an independent adjuster to work on his behalf. If that's the case, it's not a question of impartiality, because that person is supposed to advocate for him.
A policy is a policy, right?
...Every policy must be approved by the state, and any ambiguous language is to be interpreted in favor of the insured. There are 2 scenarios that are more likely than any others: If the insurer's response was to pay half, either the policy language allows them to do so in this situation, which means your friend screwed up. If the policy language does not explicitly allow them to do so, the insurer is acting in bad faith.
Thank you for this clear and detailed summary, not-a-charger.
UPDATE:
Had lunch with this buddy on Friday, and... his answers kinda rambled, but the essential information I got was...
- He said as far as he knows, he was paying a premium that was what full coverage would cost. He didn't say how he knew. I suggested he confirm with his agent or other sources.
- Yes, he definitely hired an independent adjuster, for a fee. The fee is pretty large, but there is $400k on the line so...
- He said he received a check for 75% of the (assessed value or adjuster's estimate?) from the insurance company.
- After consulting with his insurance agent, who said it that it would not limit his options, he took the step of cashing the insurance company's check to pay the adjuster's fee (I've always been told it is risky to cash the check because it can imply you accept the insurance company's settlement amount and limits your options for pursuing further insurance money).
- Apparently the insurance company signaled they want to withdraw the 75% offer, and reduce it. He told them no, and he still wants 100% of what the policy (and adjuster's estimate) should allow him (If they really wanted to withdraw, wouldn't the insurance company just put a Stop Payment on the check? Makes no sense to me. Maybe they're just playing games to make him happy he got the 75%).
- I told him he could contact the New York Insurance Dept. to get help or file a complaint.
Further comments are welcome, but...
..at this point there seems to be enough carelessness, vagueness and unconfirmed information, it doesn't make me feel like I can offer him much more help.
So guys, thanks again for your input... hopefully there is something to learn...
Cheers,
- Art
