[StBernard] News You Can Use 12-27-05

[Westley Annis]

I will be sending out information to people I believe to be either displaced
by Katrina or to people who are housing those of us displaced by Katrina.  I
am doing this to try and help us all.  I realize that many of us are getting
lots of e mails.  If you would like to be taken off of this list, please
reply to that effect and I'll remove you. 

On the other hand, if you know of someone who you think may benefit from
receiving information such as what I've sent here, please let me know that
and I'll add them to the list.

If you have a question on some financial, insurance or related topic, please
let me know.  I'll try to address it and share the information with
everyone!!

 

 

December 27, 2005

 

Let me start by wishing everyone a very Merry Christmas. I know it's two
days after Christmas, but in my book, Christmas is not a day, but a season
that runs from December 25th through January 6th. So with that in mind,
Merry Christmas.

 

I also would like to wish you a Happy New Year.  There's no doubt 2005 will
be a memorable year, one that most would rather forget.  However, try to
think about all the positive things that have happened to you this year.  I
for one have made many new friends and received more support than I should
have from strangers I call angels.    I hope that you have received the same
type of blessings as I have.

 

 


Important Documents


 

Have you found your wills since Katrina?  What about your life insurance
policies or powers of attorney?    I've heard many stories about people who
kept important documents in a file cabinet or safe inside their house.  Many
had their important documents in a safe deposit box at the bank. Many have
been able to get to the documents, but they are ruined. 

 

If you have lost a will or other important document, work on getting it
replaced.  Perhaps the original was kept at your attorney's office and may
be high and dry.  If not, I recommend you schedule a meeting with our legal
advisor soon and get it replaced.

 

Destroyed life insurance policies can usually be replaced by the issuing
company.  Contact your agent and let him know your policy was destroyed and
get him working on replacing it.  There's usually a nominal fee to have the
policy replaced.  If you prefer, some companies will issue a "certificate of
insurance" for free. The certificate is just proof of insurance, and not the
policy itself.   However, given the electronic age we're in, it's rare that
insurance companies require an actual policy to pay a claim.  

 

Legal documents are another matter.  While I'm not an attorney, I think I'm
on solid ground saying that legal documents need to either be in an original
form or in a certified copy to be accepted.  If the original was destroyed,
you need to replace it. 

 

Now may be a perfect time to update that will you drafted in 1969.  And
while you're at it, consider getting a power of attorney, living will, and
healthcare power of attorney drafted as well.  

 

Even if your will is in good physical shape, it may need to be updated for
one of many reasons.  Maybe you've named guardians for your children who are
no longer appropriate.  Maybe you've mended fences with that child you
disinherited and would now like to include him or her in the estate. Or
maybe you've moved to another state.  

 

Louisiana is the only state in the union that uses the Napoleonic code as a
basis for its laws.  Therefore, wills drafted to comply with Louisiana laws
and rules may not be effective or acceptable in Mississippi or Texas.  

 

Now's the time to check.  Sort of like the time to check your flood
insurance was before Katrina hit.

 

 


Redo Your Insurance Settlement


 

Readers of this "News You Can Use" newsletter undoubtedly appreciate how
frustrating it's been for the People of Katrina to have their insurance
claims settled fairly by the insurance companies.  Prior to Katrina, I felt
the insurance companies would be there, waiting to help us.  Post Katrina,
I've got my doubts.   It sometimes feels as if they're working against us
versus being there for us when we need them.

 

I have been arguing (literally arguing) with my insurance company since
shortly after the storm.   In October, we settled both my flood insurance
claim (easy) and homeowner's claim (anything but easy.)  As I mentioned in
an earlier newsletter, just because you receive a check from the insurer, it
does not prevent you from going back to them for a revisit.  I did just that
as I noticed there were some items for which I had not been compensated.

 

After many phone calls and a threat of a lawsuit, we finally got the issue
settled (See below.)  I received my "supplemental" check last week.  I
noticed two things.  First, there are still several items that are missing
for which I am owed some money.  Secondly and most importantly, the amount
the insurance company is paying to have work done has gone up significantly
since October.  

 

For example, in October I received $158 per square for the shingles
necessary to repair my roof.  In December I received $196 per square, a 24%
increase.   I mention this because it may be worth your while to "re-settle"
with the insurance company if you received your checks fairly early after
the storm.

 

This increase is undoubtedly due to the price of supplies and labor
increasing substantially since Katrina hit.  It's a result of simple
economics - the demand for building materials has gone up substantially
while the supply has remained roughly the same.  This will inevitably result
in higher prices, and that's exactly what happened.

 

If you're certain you are going to use the funds you receive from you
insurer to rebuild your house, this fact probably isn't important.  You'll
receive more money, but you'll also spend more money.  They'll wash each
other out.

 

If on the other hand you're contemplating not rebuilding your house, this
can be significant.   As I read my policy, it's pretty clear that I am owed
whatever it costs to get my house back in the shape it was in prior to the
storm.

 

This being the case, it may be worth you while to re examine your settlement
documents and see just how much they paid for you to repair your residence.

 

 


Squeaky Wheels Get Greased


 

Have you joined the club of those of us frustrated in dealing with our
insurance companies?  

 

If you have reached the end of your rope, you have several options.  One is
to sue them.  Trust me they don't want this.  The case will be heard before
a court in your home town before either a jury of residents who have shared
your experiences or a judge elected by these same residents.  

 

Many of the decisions to be made in settling insurance claims are subject to
the interpretation of the adjuster.  For example, is it reasonable to expect
someone to live in a house without electricity? That's a question I've asked
my adjuster several times.  He's told me he doesn't consider electricity
essential to my house being habitable.  That's his opinion.  Mine is a bit
different.  

 

Since the policy does not address the issue of essentialness of electricity,
it would be up to a jury or judge to decide that if I sued the insurance
company.  You and I both know how this would wind up.  The insurance company
knows this as well.  It's David vs. Goliath all over again.  FYI, David wins
in the Biblical version.

 

After many frustrating conversations with my adjuster over issues like
electricity and the appropriateness of my driving back to Chalmette from my
temporary residence in Baton Rouge, I decided to sue him, the company, and
my agent.  As a courtesy to my agent of 20 plus years, I called to tell him
the news.  That's when he made me aware of a special department at the
company that is specifically designed to head off lawsuits.  

 

My insurer's unit was called the Quick Response Center.  I'm glad I called
them.  I didn't speak to them until 24 hours had passed after my decision to
sue, so I was a bit calmer by the time I spoke to them.  After pleading my
case with a supervisor of the QRC (that's insurance talk), I got a fair
hearing.   The next day, my adjuster called me with a markedly different
attitude.   A week later, I got a check for some of the issues for which I
could not get any satisfaction from the adjuster.  They did not give me
everything I'm asking for, but at least we made some headway.

 

I share this with you because I believe each of the large insurers must have
something similar to the QRC (more insurance talk).  Maybe you can ask to
speak to them before you drop the hammer of a lawsuit on their head.
Hopefully, the two of you will be able to work something out before it gets
really ugly.

 

DISCLAIMER:  This e mail is intended to help those of us who have been
impacted by Hurricane Katrina.  It may contain information that is somewhat
legal  in nature or affect your taxes.

 

References to legal or tax considerations are intended only to alert you in
a general way of those considerations which may effect you.  We do not
engage in the practice of law.   All legal considerations must be referred
to and passed upon by your attorney.  All tax considerations should be
reviewed by your tax preparer.

 

Paul V. Perez
Certified Financial Planner
 
Financial Network Investment Corporation, Member SIPC
7642 Old Hammond Highway
Baton Rouge, LA  70809
(504) 494 3144
(225) 248 6635
(225) 208 1885 (fax)