Some Illinois Tornado Victims Struggle With Insurance Companies

Aug. 23--COAL CITY -- When Chad and Melissa Hansen of Coal City looked at their house after it was hit by the June 22 EF3 tornado, all they could see was scattered belongings, a damaged home and dashed dreams.

The family immediately called their insurance company and were grateful they paid extra premiums to have additional coverage on their belongings to help pay for what they knew was going to be a huge expense to rebuild and replace.

What the Hansens were not prepared for is what they feel has been a lack of response from their insurance adjuster, and assessments that say insurance would not pay for all of the damage.

"I told them just because the glass in a window isn't broken, doesn't mean it doesn't need [to be] fixed," Melissa Hansen said. "Some of the windows are crooked. They won't even open."

On South Broadway Street sits the home of Sara Smith and her two children. She has had similar conversations with her insurance adjuster.

"The first engineer they sent said the two walls that came away from the foundation could be pushed back in. The second one they sent said they would have to take the walls down," Smith said. "The village and my contractor said it has to be torn down, but the insurance company said they have to go off of the engineer reports that say the house doesn't need to be torn down."

Their homes were among the 884 structures damaged by the tornado. And two months after the tornado hit their homes, the Hansen and Smith families are no closer to starting to rebuild than they were the day after it struck.

Coal City Village Administrator Matt Fritz said the village has heard from several residents having issues with insurance companies.

"We've heard from residents about maxing out their policies, and other individuals who are dealing with their policies and adjusters," Fritz said. "When you see them, you can tell there is a problem with the adjuster or the policy. It's causing a great deal of stress."

Calls made to some locally used insurance companies, including the ones the Hansen's and Smith's use, were not immediately returned.

Lynne McChristian with Insurance Information Institute, an organization with membership that includes both small and major insurance companies, said via email there can be a number of reasons insurance companies appear to be slow to respond in disaster situations.

The biggest problem often is that the insurance company does not have accurate contact information.

"Does your insurer have your cellphone number? Some people only provide a house phone number, and if the house is damaged or destroyed and the family is not living there, it would be very difficult to connect," McChristian said.

All insurance is not equal

Hansen said after the first assessment came in, the family started to question the insurance company.

"The neighbor's damage assessment was higher despite [having] less damage to their home," Hansen said. "The first adjuster had zero compassion and he wouldn't guide us and couldn't tell us what they covered."

She said the family was given a booklet that was vague as to what was covered and what wasn't.

The Insurance Information Institute suggests before meeting with an adjuster to identify structural damage and to make a list of everything you want to show them, such as cracks in the wall or missing roof tiles. It also suggests keeping a copy of the lists and other documents given to the insurance company, as well as the paperwork given to you.

McChristian said a home inventory of personal possessions makes claims filing go more smoothly in the event of a natural disaster.

"We have free software to do this at www.KnowYourStuff.org. With a home inventory, which can include photos and copies of receipts, the homeowner has a record that speeds the claims process," she said.

Get familiar with your policies

Community Foundation of Grundy County Executive Director Julie Buck said the Long-Term Relief Committee, formed to assist residents, has heard from many who are finding out items are not covered by their policy, or they are underinsured.

The Illinois Department of Insurance recommends consumers become familiar with what perils their homeowners' policy does and does not cover, and make sure the proper coverage is in place before a disaster strikes.

"Most policies cover fires, and wind damage such as tornadoes, but do not cover floods, sewer backup, earthquakes or mine subsidence," Allisandra Calderon, public information officer with the Illinois Department of Insurance, wrote in an email. "These additional perils can be covered at an additional charge and should be discussed with the agent."

Be your own advocate

Hansen said the biggest lesson she has learned is you have to be your own advocate to see results.

"I looked at the scope provided by the first adjuster. Our fireplace has obvious damage; they didn't even include it in the scope," she said. "The homeowner has to do all the legwork."

She said hiring their own structural engineer was the best decision she and her husband Chad made, despite the additional out-of-pocket expense.

"The $1,000 we spent on our structural engineer is the best money we've spent. It has given us peace of mind," she said. "You can ask your adjuster to provide one, but you should seek out your own."

Anyone with questions regarding home or auto policies or claims, or who wish to file a complaint, should contact the Illinois Department of Insurance toll free at 866-445-5364 or report it electronically at www.insurance.illinois.gov.

"This has been a particularly rough year for severe weather in Illinois, and thousands of Illinois residents have had their homes destroyed or damaged. They should know that the Illinois Department of Insurance is keeping an eye on how they are treated by their insurance companies, and the department is available to assist them to make sure they are treated fairly," Anne Melissa Dowling, acting director of the Illinois Department of Insurance, said in an email.

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