Legal Question in Insurance Law in California

Property Damage Negligence Claim for Termite Infestation

I have a property damage claim against 3 insurance companies - this is the commercial general liability insurance that the pest control company and fumigation carries (cgl policy). I do not have an attorney. I used to work as a legal secretary and handling this claim by myself. My house has 17 plus (more like 40 but items were group together) areas of infestation/damages. There are many hidden damages that were found. Damages - under carpeting, flooring , under carpeting, and vinyl tiles, wall, fascia board, rafter, window frame, door frames, garage damage, spa damage, electrical outlet - inside termite droppings, 4 kickout holes from termites digging through, etc.

My contractor and his lawyer said that the house needs to get demoed and rebuilt. The termites are also in the walls. I had a pest control company who treated my home from 1999 to 2007 and got comfortable and neglected my home and 2007, I called another termite company who told me that I was infested. I had my house fumigated and the fumigation failed. The infestation continuing to this date. I was going to do another fumigation and right now, it is on hold if the house will get torn and rebuilt. I will treat the soil before building.

The insurance companies are very concerned and are almost ready to settle upon presentation of the claim, because they are worried about a lawsuit. I have tremendous emotional distress. I was advised that they have to pay for relocation - moving, storage expenses, demo and rebuild.

In 2008, I got paid $1,500 from pest control company and used that money to fumigate my home and paid for the hotel. I signed a regular letterhead letter that I am releasing them from any further obligation, but I have not signed the General Release with CCP Section 1542. It is my understanding the letter is not valid and I did not sign away the unknown. The insurance company assured that they will resolve the matter. Please let me know your thoughts what are full liabilities here that I should be seeking.

In addition, if I rebuild, I will lose the low tax privilege from the 70's of Proposition 13 and it could spell a financial disaster for me. Instead of paying $2,148 per year prop. tax, this could go as high as $8,500 and I cannot afford this. I am retired due to my medical conditions. I do very little on a daily basis due to the pain that I have in my back and other conditions.

I have not hired a lawyer and I told the adjuster that I am trying to resolve this matter without involvement of an attorney that I believe will settle and if not, I told the adjusters that I will hire an attorney. I have contacted the CEOs of 2 insurance companies and one CEO already got into action about to get the matter going. The other insurance company's director of claims contacted me and is going to be handling this matter. This is extremely serious and I am very stressed out ovre this matter.

Thank you for your reply.


Asked on 6/29/10, 5:34 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Without knowing what your release said, it's not possible to tell you how it affects your rights today.

Your question about Prop 13 is a good one, but it is more about real estate law than it is about insurance law. I suggest reposting it under that category. If your taxes really will go up, then the increase might be something the insurance will cover.

Despite your background, I urge you to at least consult formally with a lawyer.

Good luck.

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Answered on 6/29/10, 8:54 pm


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