Hello,
I am a renter and last year the portable fireplace that I was using caught fire while I was sleeping, resulting in significant damage to the unit. There were no injuries but some of our neighbors had to be temporarily rehoused due to the smoke smell. I have a relatively high coverage limit ($400k), but I was told by my insurance company that the total damages may exceed this figure. The insurance company indicated that their analysis is that I would be found liable for the damage due to negligence (I don't entirely agree but that's beside the point as of right now), and they are handling the case and attempting a global settlement within my policy limits. I basically just get a letter from them in the mail every month stating that they are awaiting final repair estimates and that they are attempting to negotiate a global settlement with all involved parties. This has been going on for over a year now (since February of 2025.)
I have been pretty anxious about this as this is my first (and last, hopefully) time dealing with anything like this. Would it be a good idea to get a lawyer involved at this stage, or should I wait until I am sued, if that happens? I have contacted several lawyers through state bar referrals but most do not return my emails. The one who did was confused as to why I would need a lawyer — "If the company is offering its policy limits, then you likely do not need an attorney. Insurance is a contract. In exchange for insurance premiums, the insurance company will cover losses up to a certain dollar amount (i.e. policy limits). If the company is offering policy limits, this means they are offering to pay the most money they can pay under the policy. You would probably not be eligible for compensation over and above the policy limits."
I think I might just not be asking the right questions.
If anybody could provide me with some steps to take or what this process typically looks like I would be really appreciative as I am just overwhelmed and confused and scared right now.
Apartment Fire – Next Steps
byu/ThrowAwayInMontana21 inInsurance
Posted by ThrowAwayInMontana21
1 Comment
If you are sued your insurance company will provide an attorney at no cost to you.
Your insurance is waiting for all the dust to settle then will attempt to settle within your limits. If the total claim value exceeds your limits you may be asked if you can contribute anything. Most people can’t (myself included).
Prior to your carrier issuing payments they will collect executed releases from the other parties. The purpose of those releases is to keep the other insurance companies, apartment complex etc from sueing you.
I handle large loss commercial claims. I would expect this to take 18-24 months to resolve. Depending on the age of the complex there are code issues that will take awhile to work through, and stuff just seems to take longer these days.