CA homeowner stuck with $50K bill after neighbor’s tree crashes into her house but insurer denies ‘unforeseeable’ claim

As extreme weather events become more frequent, homeowners increasingly rely on property insurance as their last line of defense. But when natural acts blur legal lines, insurance coverage can quickly unravel.

That’s what Castro Valley homeowner Angela Bereola recently discovered. Last year, heavy rain and 36 mph winds knocked down a large oak tree on her roof, ABC 7 On Your Side reports [1]. Unfortunately, the 100-year-old tree took root in the Hayward Unified School District’s yard, complicating her insurance claim and leaving her with a bill of $51,399.97.

Bereola’s story is a warning to all homeowners: A seemingly simple property damage case can still turn into an insurance dispute over coverage, liability and liability.

According to a third-party estimate cited by ABC 7 On Your Side, the total damage to Bereola’s roof was valued at $70,600.83. This estimate does not include any damage that occurs when the tree is removed.

Since the tree was technically in her neighbor’s yard, the insurance adjuster offered to pay only $19,200.86 of the total loss, leaving her responsible for the remainder: $51,399.97.

Despite months of wrangling with the school district’s insurance agency, her claim was denied. “Based on the results of our investigation and applicable regulations, we determined that the tree fall was a natural occurrence and that the Hayward Unified School District is not responsible,” the district’s property and cyber claims specialist said in an email.

“It’s not fair,” Bereola said. “It’s not like we did anything to cause the tree to fall.”

Ultimately, after ABC7’s consumer advocacy team contacted the insurance company, the issue was resolved and Bereola received a supplemental payment to cover some of the costs. But most homeowners can’t afford to wait a year or rely on media pressure to resolve insurance disputes. Here’s how you can protect yourself from similarly complex disputes.

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Having a property insurance claim denied is not as unusual as you might think. The nation’s 14 largest property insurance companies will settle 40% to 51% of homeowners’ claims without any payment through 2024, according to Weiss Ratings [2].

This is a significant risk that all homeowners should be prepared to face. There are several ways to limit risk. The first step is to carefully review your policy documents to see what is and is not covered. This should help you prepare for any unusual or unclear situations.

When damage occurs, make sure to document as much of the damage as possible. Take photos and notes so you are fully prepared to present your case to the insurance company when you file your claim. If you make any temporary changes or repairs, be sure to keep all receipts and include them as part of your claim.

You may also consider hiring an independent adjuster or licensed contractor to get a fair estimate of the damage and repair costs. Please note that according to United Policyholders, the cost of a public adjuster is likely to be around 15% of your total claim amount, so you will need to consider whether the investment is worth it in your specific circumstances [3].

If your claim is denied, consider filing an appeal. The process is usually outlined in your insurance policy documents, so read again to learn how to try to overturn a denial. There are also often time limits on appeals, so it is important to act quickly.

Finally, you may consider hiring an attorney to fight your claim. Lawyers are expensive, so this may be a last resort only if the damage is severe enough to justify the expense.

Storms and downed trees are inherently unpredictable, and even well-maintained properties can suffer sudden, severe damage. But homeowners who thoroughly document their losses, promptly report claims, and understand their insurance coverage and legal rights can better avoid lengthy disputes, unexpected out-of-pocket expenses, and the financial and emotional stress that often follows a major property loss.

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ABC7 News (1), Weiss Ratings (2), United Policyholders (3

This article provides information only and should not be considered advice. It is provided without any warranty of any kind.