Sep 6, 2024
Homeowner Rick Cameron spent three years and tens of thousands of dollars renovating his family’s home all to watch it come crashing down.
After replacing the roof, stairs, walls, floors and kitchen, Cameron, an experienced construction worker, began work on the basement when the house's walls began to collapse.
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"We did a lot of renovations inside, outside, but recently we decided to dig down in the basement to get a little more headroom … and something happened," Cameron told KDKA News in Carroll Township, Pennsylvania.
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Cameron’s crew rushed to evacuate his wife and five children from the home and added supports to brace the walls, but the collapse worsened. Now, the house is a total loss and Carroll Township, where the family lives, says it must be demolished.
"It's hard to look at it,” Cameron said. “Every time I think about when I got to start tearing it down, it's going to be hard."
To make matters worse, the Camerons have been battling their insurance company, State Farm, after receiving a letter stating it will not cover the damage. But they have been proactive. Here’s how they’ve handled the situation and what you can do if it happens to you.
The insurance company hasn't been responsive
After receiving the denial letter, Rick hired a public adjuster, Stephen Hnat, to help. Public adjusters are independent insurance professionals trained to help individuals navigate the homeowners' insurance claim process.
"First thing I … do is basically read the policy to see what he's entitled to," Cameron’s adjuster, Stephen Hnat, said. "It became a real battle just trying to talk to (State Farm).
“We asked them several times to, you know, explain your position on this, and they just refused,” he added. “(The insurance representative) would not respond. He wouldn't do anything."
Although Cameron and his crew did the work, the damage is covered under their policy. According to the adjuster, Cameron’s policy includes additional coverage for collapse during construction. Even if the construction crew is partially at fault, the policy should cover the damage as long as it's not intentional.
For now, the Camerons are waiting to see if State Farm will cover the loss while they plan the demolition of their beloved home. The family has moved into a nearby rental while waiting for the next steps.
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How to navigate a homeowners' insurance claim
The Cameron family's coverage covers collapse due to construction, so they're hopeful State Farm will approve their claim. If not, they’ll have to pay for demolition and rebuilding themselves. If they still have a mortgage or a construction loan those payments will continue as well.
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Navigating a homeowners' insurance claim can be challenging, but there are ways to protect yourself. First, understand your policy’s coverage. If you're planning construction, check that it covers construction-related damages. When hiring a contractor, ask for their insurance certificate, as it may provide additional protection.
Before any cleanup occurs, take detailed photos and videos of the damage, and create a digital file with documentation on when, where and how it occurred. This can help when filing a claim.
Get multiple contractor estimates to gauge repair costs, which can strengthen your negotiations with the insurance company. If the insurer’s estimate is too low, having several quotes may support your case.
Make sure you file a claim promptly, as some insurance policies have strict time limits. If your claim is denied, ask for a written explanation and the specific policy language used for the denial.
Finally, consider hiring a public adjuster if the claim is complicated or the insurance company's estimate needs to be higher. They represent your interests and can negotiate company for a fair settlement.
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Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
