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Thread: Reservation Of Rights With Homeowners Claim

  1. #1
    New User Level 0
    Join Date
    Jan 2017

    Default Reservation Of Rights With Homeowners Claim

    Very long story but will try to summarize as much as possible....

    Filed a homeowners insurance claim regarding a strange odor in our home. Despite numerous experts who we had look at the house the source of the odor could not be determined.

    The insurance company initially denied the claim as we could not pinpoint an occurrence and under the premise their was no property damage. We contested the denial as there obviously was an occurrence at some point and there certainly was property damage (house is uninhabitable).

    Insurance company hired a consulting firm to investigate and issued a report that they had determined the root of the issue (water intrusion) and told us the issue was covered under our policy. Insurance company hired company to repair issues noted in consulting firms report and also completed several procedures in the house to eliminate the odor. Unfortunately the work did not resolve the issue.

    At this point, despite numerous experts looking at the house both the origination and the source of the odor cannot be determined. The insurance company is currently doing testing to try to determine the source of the smell but the adjuster and consulting firm continue to believe their original theory was the cause of the odor.

    1) Our position has been that if the cause of the odor cannot be determined (and therefore potentially excluded) then coverage applies.

    2) While we never received anything in writing the insurance company told us the reports findings were covered under the policy and began work to resolve the issue.

    3) While there is now discussion/ debate on the consulting firm's report ,we have not received a reservation of rights letter despite being reimbursed for some work we have done to try and fix the issue).

    As crazy as it sounds, I don't think we will ever determine the source of the issue (we;ve been trying to determine for almost six months).

    Given the facts presented above (coverage initially triggered, no reservation of rights received,) lead one to believe that coverage will continue to apply if we are unable to determine the cause of the issue?

    If not, does the insurance company's actions to this point allow us a strong claim for legal action should that be necessary in the future?

    Appreciate your thoughts.....

  2. #2
    Super Moderator
    Level 10
    xrac's Avatar
    Join Date
    Sep 2009


    Consult an attorney with expertise in this type of litigation. This is a very peculair situation and may be beyond the experience of anyone here.

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