FREQUENTLY ASKED QUESTIONS
Law Office of Rabih Hamawi, P.C. asks you to provide the following documents, if available:
1) A complete copy of your insurance policy; 2) The reservation of rights letter or denial letter from the insurance company; 3) Any and all correspondence to and from the insurance company, including emails, letters, text messages, audio recordings, photos, and videos; 4) Any estimates of damaged items to be replaced or repaired; and 5) A copy of the police report or fire department report.
Insurance policies require insureds to cooperate with the insurance company’s investigation, which may include giving a recorded statement. A recorded statement is a statement of an insured taken by a representative of the insurance company such as an insurance adjuster, a special investigator, or a cause and origin investigator. It is usually audio-recorded and may be taken either in person or by phone. During a recorded statement, an insured may request permission from the insurance company to also record on his or her phone or other electronic device the statement given. When an insurance company requests a recorded statement, it is highly recommended that you retain an attorney specializing in insurance law to represent you to protect your interests and to prepare you when giving a recorded statement.
If your home or business has been vandalized, broken into, or subjected to arson (meaning intentionally burned), under the conditions section of an insurance policy, you must immediately notify the police or other law enforcement officers if you suspect a crime has been committed. This is crucial, and most policies require you to notify the police right away.
Insurance policies allow insurance companies to take your examination under oath and request several documents that may be sensitive in nature. An examination under oath is usually conducted by the attorney for the insurance company who will likely ask you questions over the course of several hours in the presence of a court reporter. Sometimes, you may also be required to review the transcript after an examination under oath and sign it. If you refuse to appear for an examination under oath and refuse to produce the requested documents, the insurance company will likely deny your claim for failure to cooperate. If you are requested to attend an examination under oath, you must be represented by an attorney specializing in insurance law who can properly prepare you before the examination under oath, review the documents submitted, and attend the examination under oath with you.
If you didn’t read your insurance policy before, you must immediately read your insurance policy, which undoubtedly has many conditions that you must comply with after a loss. Some of these conditions require you to immediately notify your insurance company of the loss, mitigate your damages by taking steps to protect the property from further damage (regardless of whether you received any payment from the insurance company), and provide certain information and documentation to the insurance company. You are also required to timely submit to the insurance company a Sworn Statement in Proof of Loss.
Under Michigan law, results of a polygraph or a lie detector test are usually inadmissible in a court proceeding. Further, under most insurance policies, an insured doesn’t have an explicit duty to take a polygraph or a lie detector test. When an insurance company requests a polygraph or a lie detector test, it is highly critical that you retain an attorney specializing in insurance law to advise you on whether to give one.
Generally, yes. Under the insurance policy and Michigan law, you have a duty to cooperate with the insurance company’s investigation and provide all of the requested documents. If you willfully refuse to provide these documents, the insurance company may use your refusal as a basis to deny your insurance claim.
Additional Living Expense coverage is an amount that an insurance company will pay you after an insurance claim if you are unable to live in your home. A frequent misunderstanding is that people think the insurance company will cover all the increased expenses, and that is usually not the case. You must review your policy to know what the insurance company will pay. The general rule is that the insurance company will only pay for the reasonable increase in your living expenses. Meaning, if there is any increase after a claim and that increase is reasonable, then they will pay for it.
Although some property insurance policies may include a longer time period, generally, an insured has one year after the date of the claim denial to sue his or her insurance company. In calculating this period, Michigan law provides that the time is tolled (doesn’t count or isn’t included) from “the time the insured notifies the insurer of the loss until the insurer formally denies liability.” MCL 500.2833(q).
Under the Conditions section of most property insurance policies, the insurer has the right to demand that the insured submit to an examination under oath (EUO), which is usually a grueling process where the insurance company may interrogate the insured about anything pertaining to his or her life. Some of these questions may be personal, intrusive, or even irrelevant to the insurance claim at issue. Usually, an insurance company will request that the insured submit a long list of documents before the EUO. It is highly advisable that an insured doesn’t appear for an EUO unrepresented. It’s crucial for an insured to have an attorney who specializes in fire, property damage, and insurance-coverage cases to represent and prepare him or her for the EUO, to explain the process, to review the documents submitted, and go over sample questions of what the insured should expect.
Some insureds may ask, "Hey, it's been a couple of days or a couple of weeks, and the insurance company hasn't paid my claim yet. Can I file a lawsuit right away?" The answer is no. Before you file a lawsuit, most policies state that you should comply with all of the policy conditions, which include timely submitting a sworn statement in proof of loss, perhaps submitting to an examination under oath, or taking complying with other policy conditions before filing a lawsuit.
As a general rule, the insured has a duty to cooperate with the insurance company and produce any potential witnesses. But the question is, can you produce somebody that you have no control over? The simple answer is no. You are not obligated to produce that person, but you are obligated to cooperate and try to convince that person to talk to the insurance company, if possible.
An Examination Under Oath is similar to a deposition, but it is conducted under the terms and conditions of your insurance policy. During the examination, you are required to answer questions, typically in front of a court reporter, and these questions are usually asked by the insurance company’s lawyer. An insurance attorney can help you prepare for an examination under oath by providing sample questions and guiding you on how to answer questions honestly and truthfully. He or she may also be able to gather and review any documents that the insurance company requires you to submit.
A Sworn Statement in Proof of Loss is a document that you submit after a claim, and you complete under oath, making it essential that all information you provide is truthful and honest. You should never speculate or guess when completing a sworn statement in proof of loss. Generally, it is due 60 days after the date of loss, but some policies may have longer time periods.
Business Income, also known as Business Interruption coverage, is crucial for all business owners. If you have a commercial property policy that includes coverage for business interruption due to a fire, water damage, or any other covered cause of loss, this part of the policy may pay you for any lost net income during the period that you are unable to operate your business.
Depreciation Holdback refers to a situation where, if you have a claim and the insurance company determines your replacement cost, they may not pay you the full replacement cost upfront. Instead, they typically pay you the actual cash value of your damages, which is the replacement cost minus depreciation. Once you repair the property or replace your contents, then the insurance company will pay you the depreciation holdback, but only if you spent all the money that they initially paid you, and if you complete the repair or replacement within the time period listed in the policy.
The time required to submit a sworn statement in proof of loss is typically outlined in your insurance policy. Most policies include a clause specifying the time limit, which is generally 60 days from the date of loss. If you can't submit it within that timeframe, you must request an extension; otherwise, if you submit it late, you may jeopardize any overage you may have. Always check your specific policy for accurate information on the submission deadline.
A common question I receive is, "My insurance company has denied my claim; what should I do?" Some may wonder if they should appeal the decision or write to the insurance company again. In my experience, after your insurance claim has been denied, the best next step is to file a lawsuit and hire a lawyer who specializes in insurance law.
In insurance claims, how do you determine your damages? Generally, as the insured, you have the burden of proving your losses to the insurance company. This involves providing a clear account of what you've lost, which may require hiring experts like damages experts or public adjusters. They can assist you in assembling your claim, covering areas such as building damage, personal property, additional living expenses, and other items required under your policy.
Yes, you would be covered as long as the fire was accidental or caused by negligence, like leaving a candle on overnight or forgetting to turn off the stove while cooking. But if you intentionally set the fire to collect on the insurance policy, it’s considered arson. Arson is a crime, and your claim would be denied for intentionally causing the fire.
Yes, you can get coverage, but most policies require you to use reasonable care to keep your home or building heated to prevent pipes from freezing. When temperatures drop, like they recently did in Michigan, frozen or burst pipes can cause serious water damage. If this happens, your insurance may cover the damage as long as you made a reasonable effort to keep the heat on. But if the property wasn’t properly heated, the claim may be denied.
No, you don’t have to use the insurance company’s approved vendors. You’re free to choose any licensed and qualified person or company to do repairs on your home, personal property, or building, depending on the type of damage. The choice is yours as long as the provider is certified for the work required. Before hiring a vendor, you should also consider the vendor’s reputation and prior work experience, among other factors.
Reading your insurance policy before any loss occurs is crucial. It helps you understand what’s covered, what isn’t, and gives you time to contact your agent to ask questions if anything is unclear. If you’re unsure about specific terms or coverage, reach out to your insurance agent for clarification. And if your agent can’t an answer, consider consulting an insurance lawyer who can explain your policy details.
During the investigation of an insurance claim, you are required to provide the insurance company with all the information they need to properly assess your claim. This obligation is known as the "duty to cooperate" which is outlined in your insurance policy. If you fail to provide the requested information, it could jeopardize your claim and potentially lead to its denial for failure to cooperate.
After making an insurance claim, you have a duty to take all necessary steps to prevent further damage to your property. This includes actions like drying out areas affected by water damage or conducting a flood cut to remove damaged sections. It’s crucial to act quickly because, regardless of whether the insurance company pays your claim or not, you must mitigate your damages immediately. If you fail to do so, you risk having part of your claim denied.
No, you should never cash or endorse a premium refund check that you receive from the insurance company after your claim is denied. When an insurance company rescinds a policy and sends a refund, cashing that check can indicate that you accept the rescission of the policy, which could hurt your chances if you’re considering suing the insurance company. It's important to avoid taking any actions that could jeopardize your potential legal claims.
The decision to hire your own fire cause and origin investigator depends on the circumstances of your case. Generally, if there is any uncertainty or dispute regarding the cause of the fire, it's advisable to request that the insurance company preserve the scene to avoid tampering with evidence. In such situations, hiring your own investigator can help ensure that your interests are protected.
A protective safeguard endorsement may provide you with a discount on your insurance premium if you have specific safety measures in place, such as a fire alarm or a central station burglar alarm. To ensure coverage under your policy, these safeguards must be operational and connected to an alarm company. If you do not have an active fire or burglar alarm service, you could jeopardize your insurance coverage if your policy includes this endorsement.
The timeframe to sue an insurance company after a claim denial depends on your specific policy, as each one may have different limitations. But in Michigan, you generally have one year from the date of loss to file a lawsuit against the insurance company. It’s essential to review your policy for the exact details regarding the limitation period.
You need to check your policy first to see if it covers damage caused by earthquakes, also known as earth movement. Generally, most insurance policies issued in Michigan do not provide this coverage. With recent earthquakes around the world, including in Turkey and Syria, many insureds have been asking about it. While it's crucial to look at your specific policy for details, earthquake damage is typically excluded.
Many insureds in Michigan consider contacting the Department of Insurance and Financial Services (DIFS) to report their insurance company’s behavior. But it's important to note that DIFS is not a court and cannot take legal action against an insurance company, although it can issue warnings or fines in some cases.
A recorded statement is a conversation where you're asked questions related to your claim, the loss, and what happened. If the insurance company records this conversation, you have the right to record it as well. It's always a good idea to ask the insurance company for permission to record the conversation.
Personal property inventory forms are documents that your insurance company typically provides, which you must complete to support your claim. These forms usually require you to describe your personal property, including details like age and condition. It's very important to fill these forms out honestly and accurately, and avoid guessing or speculating. Include any available information, such as photos, videos and receipts. If you don't have certain documents, do not fabricate them; instead, reach out to vendors to obtain the necessary information.
When you file an insurance claim, whether for building damage or personal property, you have the burden to prove your damages. This means you need to provide detailed information about your claim to the insurance company. To help with this process, you may want to hire a public adjuster or another damages expert to accurately assess and quantify your losses. It's essential that any figures or estimates provided are completed honestly and truthfully to ensure a proper evaluation by the insurance company. Under Michigan law, it is the insured's burden to prove their damages after an insurance claim.
If a fire is caused by arson, coverage for your claim typically remains intact, provided the arson was not committed by you or at your direction. This means that if a stranger is responsible for the arson, the insurance company should still pay for your fire claim. If this is the case, and your insurance company denies your claim, you may need to file suit.
To support your personal property claim, the insurance company will consider various types of documents. This includes receipts, invoices, photos, and videos related to your lost or damaged items. Any documentation you have created over time that helps establish the amount of damages should be submitted to the insurance company. If you don’t have these documents, make sure to contact the vendors to obtain them, as this will assist you in cooperating with the insurance company.
When filing an insurance claim, you have a crucial duty to preserve all evidence related to your claim. This includes not only physical evidence but also electronic evidence such as photos, videos, text messages, and emails exchanged with the insurance company, agents, or anyone else involved. It’s essential to keep this information intact, even if you’re tempted to delete it for reasons like storage space on your device. Failing to preserve this evidence can lead to difficulties in proving your damages or other relevant issues in your claim.
The answer isn’t always straightforward. It depends on the circumstances of the fire, the area of origin, whether the fire is incendiary, and other considerations. But, generally, if there's any question or dispute about the cause or origin of the fire, you should ask the insurance company to preserve the scene and avoid spoliating any evidence. In such cases, it’s often wise to consider hiring your own fire cause and origin investigator for an independent assessment.
Yes, an insurance claim can be denied if the sworn statement in proof of loss is inaccurate or false. It is critical to complete the sworn statement honestly and truthfully. Speculating about the cause of the loss—especially in fire cases—can lead to problems if your assumptions turn out to be incorrect. Inaccurate or speculative information may be viewed as misrepresentations or even fraud, which can result in the denial of your claim.
If your insurance company demands an examination under oath, you should retain an insurance lawyer who specializes in fire, property damage, and insurance-coverage cases to represent you in it. This is because the insurance company will typically have its own attorney conduct the examination, and everything you say will be recorded and transcribed by a court reporter. Hiring a lawyer who specializes in insurance law ensures that your rights are protected and that you are properly prepared for this complicated and lengthy process. Law Office of Rabih Hamawi always advises that an insured should never appear for an examination under oath alone or without legal representation.
The types of damages that may be recovered depend on the terms of the insurance policy. The policy outlines what is covered, what is excluded, and the coverage limits for specific items. Generally, you may be entitled to recover damages for your building, personal property, and additional living expenses. If the policy is a commercial policy, like a businessowner’s policy, you may also be entitled to compensation for business income losses and extra expenses.
Every insured should know that under the conditions section of any property insurance policy, the insured has a duty to complete and submit these personal property inventory forms. It’s important to accurately complete personal property inventory forms because insurance policies require you to do so as part of your duties after a loss. These forms help the insurance company assess and pay for your losses. You must complete them honestly and truthfully—do not guess or speculate. If you're unsure about a specific question, like the age of an item, it's better to leave it blank than to provide inaccurate information. Even without receipts, you can still estimate the value of lost items fairly and reasonably. Providing complete and accurate information ensures you receive the compensation you're entitled to under your policy.
The amount of additional living expenses (ALE) you may recover depends on the terms of your insurance policy. Some policies provide ALE coverage for a set period—such as 12 or 24 months—while others may limit coverage to a specific dollar amount. Once that time period or dollar limit is reached, the insurance company is no longer obligated to pay ALE. It's important to review your policy carefully to understand the exact limits of your coverage.
Remember, not all lawyers are the same, every lawyer has a different specialty. You should hire an insurance lawyer because insurance law is a specialized area, and not all attorneys have the knowledge or experience to navigate it effectively. An insurance lawyer can help you understand the terms and conditions of your policy and ensure your rights are protected. Since the insurance company will likely have its own legal representation, it’s important that you have an insurance attorney advocating for your interests as well.
The policy is a very important document. It's the contract that determines the rights and obligations of the insured and the insurance company. If you receive a copy of the policy, you have a duty to read it, meaning don't store it, don't put it away in your drawer or in your office. You have duty to read it and ask any questions you may have about it.
After filing an insurance claim, it's very important that you try to document your damages to the extent possible. This means you may have to take photos, videos, and just try to document your damages so that you can submit those items, the photos and the videos and any documents you may have as proof to the insurance company, especially if those items become unavailable later for whatever reason.