On an early Sunday morning in July, Wendell Link of Coppell watched his neighbor’s house burn down. Link ran to his car and drove it out of the way of crews from three area fire stations.
Walking back, he noticed that embers from the fire were landing on his roof, as were massive amounts of hosed water. Heat was melting his windows, siding and gutter, too.
Link wasn’t overwhelmed with fear. As long as his house was saved, everything would be OK. He had insurance.
Turns out he didn’t have enough.
The July 2023 fire in Coppell. Neighbor Wendell Link’s house next-door faced problems after…
The July 2023 fire in Coppell. Neighbor Wendell Link’s house next-door faced problems after this. (Courtesy of Wendell Link)
Underinsured is common
He was underinsured, which is common. Among the ways insurance agents may try to win your homeowner’s policy business is by offering you in mailed flyers a lower premium than you may be paying with your current company.
How do they get the price lower? They may make the roof replacement deductible higher so you pay more out of pocket. Or they may underinsure your house. What a racket!
Let’s say your house was originally insured for $250,000. During the boom, its value rose to $325,000. Did you correct your policy?
Replacement costs are higher because of the increased value of labor and materials. Did you figure that in?
Link would learn he was underinsured. He had two other problems. A fire investigator ruled the cause was unknown. That uncertainty thwarted his claim. Plus, his neighbor’s company, Liberty Mutual, wouldn’t pay anything toward his claim with his insurer, Farmers.Link’s damage repair estimate came in around $50,000. Farmers offered him $2,100. He contacted me, and I wrote back: “Sometimes, all they hear when you complain to them is ‘blah, blah, blah.”
“But if you hire a lawyer, you are elevated in their priority because they are trained to listen for that word —‘blah, blah, blah, lawyer.’ Like a dog, their ears perk up.”
With zero lot lines, Wendell Link’s house is about 12 feet away from his neighbor’s house,…
With zero lot lines, Wendell Link’s house is about 12 feet away from his neighbor’s house, which caught on fire.(Courtesy of Wendell Link)
He hired a lawyer who wrote two protest letters for $700 each. Farmers’ ears perked and upped its offer to $23,500. Spend $1,400 on a lawyer and get another $21,400. What a racket!
He accepted because he wanted to get repairs going and short of a full-blown lawsuit, he had no other options. The Texas Department of Insurance investigated, found the matter resolved with a paid claim and took “no further action.”
Before I show you how Link, a 76-year-old disabled veteran, pulled it off, I want to fit this into the context of previous Watchdog insurance reports.
Forced to settle
There was the story about the South Texas law firm that posted on its blog how delaying a claim is a proper way to treat clients. “Customers are forced to settle,” it stated.
While delaying, companies can “invest funds from paid premiums in order to earn interest revenue and offset some of the costs,” it explained.
There was my story about how some companies are raising the minimum deductible on wind and hail from the usual 1% to something higher, so they can get more money from you in a claim.
And the most recent: how state law allows companies to raise prices without seeking permission.
Insurance, Link now believes, “offers a false sense of security — until you have a claim and then you realize there’s no security at all.”
Farmers spokesperson Luis Sahagun released a statement: “We reached a resolution with our customer and issued payment for his loss. Consumers are urged to discuss their insurance needs with their sales agent and ask specific questions about coverages.”
Liberty Mutual spokesperson Gregory Kessler responded: “Thanks for reaching out on this. Liberty Mutual does not publicly comment on individual claims.”
This house was damaged in the July 2023 fire in Coppell. Neighbor Wendell Link’s house…
This house was damaged in the July 2023 fire in Coppell. Neighbor Wendell Link’s house next-door faced problems after this. (Courtesy of Wendell Link)
Do it yourself
So how did Link pull this off with limited funding? Instead of visiting his daughter in Arkansas, he became his own general contractor. He sought bids for a new roof, which he now has.
For other repairs, “I did most of that myself,” he said.Wendell Link, 76, of Coppell, led completion of his own house (at right) after it suffered…
Wendell Link, 76, of Coppell, led completion of his own house (at right) after it suffered $50,000 in damages. His insurance company only offered him $23,500.(Shafkat Anowar / Staff Photographer)
This retiree is handy. He owned Link Auto Service on N. Beltline Road in Irving for 40 years.
For his home repair, he did as much of the work as possible to save money. His biggest job was cleaning and deodorizing all the carpets and furniture. But at 76, he shouldn’t have to do this.
His neighbors apologized and told him they would help out and pay his $8,500 roof replacement deductible. But they moved away.
Much to his surprise, they kept their promise and sent him a check for $8,500. Their generosity — they didn’t have to do that — helped him get his project past the finish line.
When people come over, he asks if they smell anything. They say they don’t.
Link switched companies, and his premium jumped almost three times higher because of the claim, but also because he now buys more replacement coverage.
