House Insurance issue - is this right?

  • by roy
  • Nov 11,2017
  • 12 answers

I caused some flood damage in an apartment ($3k), and I have admitted that it was through my negligence that the damage was caused. The girl whose apartment it is, planned to claim for the damage on her insurance, though she told me that her insurance company would very likely sue me to recoup their pay out.
However she has now told me that she had a one-off no claim discount and she has found that if she claims from her insurance, her payments will increase significantly and she would also have a $500 deductible to pay.
She now says that instead of claiming form her insurance, she will be suing me directly for the full amount. She says that by suing me, she will not then incur any increase in her insurance premium and she will not have to pay any deductible.
She says that her insurance company would have been suing me anyway to recoup the amount they would have had to pay if she had claimed from them as this is pretty much standard practice for insurance companies when there is negligence by another party. I know little about how insurance works, so does this seem right?


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Insurance Answers (12)

Arlowene 6 days ago

Yes, she has made the wise choice to sue you, instead of jeopardizing her insurance. She will win the court
case and you will pay for all repairs and legal fees as well as pain and suffering.

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Casey Y 7 days ago

When an insurance company pays out for property damage, they always look for the responsible party. When this happens, they sue and its called subrogation.
She is correct that this will not affect her insurance if she sues you directly...

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lucy last week

When insurance pays, then they go after the (at fault) for what insurance pays (plus) the deductible. Most insurance companies will (not) sue you, if you agree to pay them back on a (repayment) plan to pay back monthly for 6 months to a year. They don’t want to incure legal costs, as long as you (agree) to pay them back and you do.
Yes, she can sue you for the costs, but guess what the court can issue an judgment, but the court (does not) collect for her. So if you wanted to be nasty, then you can just not pay her, but would have a judgment on your record, and your credit will be hurt.
Here is something else to consider, but it (depends) on the insurance company, but once she files a claim and even if she closes it, it will still be on her record, which could reflect on higher rates in the future since she opened a claim. I have heard complaints from policyholders who stated I called and (asked) a question (if) to file a claim or not, then get hit with higher insurance. (only in homeowners insurance).
So let her know, that if she sues your personally, you will pay her (whenever) you want, since if not, then she has to go back to court to get a garnishment which in many states is about 25% (max) to wait for you to pay her.
Tell her, if she files with her insurance, then she will get her deductible back, as long as you pay back the insurance.

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Eva last week

If she sues you in small claims court, they will force her to claim it on her insurance. You would be responsible for paying the deductible. They also may award her an additional amount for her insurance premium going up, but she would have to prove how much that was.

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babyboomer1001 last week

Yes, that is exactly how it works and you would be assessed, court costs, etc. too. Your friend would end up suing you anyway for causing the increase. You wouldn't have to pay an increase for the rest of her life but, a good chunk of money. Do yourself and her a favor - pay her the cost of all of the repairs. Then, there will no lawsuit, no public record of your negligence and a judgment against you and, no additional court costs and fees. Just the damages. It makes more sense.

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Judy last week

yes, it's right.

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H. Marie last week

if she had a restriction on her policy that allowed her a discount if she defaults on that then yes what she is saying is correct

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Who last week

When you have a case against somebody you have 2 options
1) sue them directly
2) claim against your own insurance policy
when you claim against your own policy you "abrogate" your right to sue the other person to your insurance company for the damages
this basically means the insurance company now has the right to sue them instead of you
BUT YOU still have the right to sue them for your deductable , AND if you can show how much your insurance premium has gone up you can sue them for that as well
Whether your insurance company sues the other person or not and how much for has nothing to do with you
i.e she is right
So if you aint got insurance YOU have to make a decision -
do I pay her 3000?
OR do I tell her to go through her insurance - in which case you have no idea how much they MIGHT sue you for (cos remember- they can sue for their costs in suing as well as the amount they paid her in damages, but they might not sue you at all
But in any case she will certainly sue you for 500 for her deductable
Question is- do you feel lucky?

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Elizabeth last week

Instead of being sued and instead of her trying to get anything from her insurance company you should do the right thing and give her $3000 for repair to the apartment. That way, you'll not incur legal fees, which you would if you were sued.

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Barnes last week

Ignore all her bullshit. If she takes you to court for what was an innocent accident the judge will tell her to claim on her insurance. I even doubt that she will risk suing you as if she loses she will have to pay court fees and probably your expenses too. In your position I would tell her to do as she wishes and wait to see what transpires. She may even be trying to frighten you into paying for the damage out of your own pocket. I don't like the sound of her at all. She thinks she knows it all and thinks you are a sucker. Nasty woman.

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Greg last week

Why don't you just pay for the damage you caused? Do you want to pay lawyers and court fees in addition?

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Michael last week

Yes, it is right. The insurance company would come after you to recoup the money if she were to file the claim. It would be in your best interest to work something out with her.

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