NEW BERLIN, Wis. — A New Berlin homeowner is suing USAA after the insurance company initially denied his flood damage claim, only to reverse course once he hired an attorney.
Chris Taber's basement flooded in August when his sump pump failed during severe storms that affected thousands of Wisconsin residents. Despite having sump pump failure coverage specifically built into his homeowner's insurance policy, USAA denied his $10,000 claim without sending an adjuster to assess the damage.
"Insurance companies are expecting you to just roll over and take it, and don't do it," Taber said.
The water destroyed three decades' worth of collector's items, movies and personal memories stored in Taber's basement.
Watch: New Berlin homeowner sues USAA after insurance reverses flood claim denial
"For me, that was, I was distraught," Taber said. "We tried to handle it, like, okay, we'll call insurance, and we'll look for guidance, and that guidance never happened."
Taber hired insurance attorney Justin Wallace, who sent a letter to USAA stating his representation. Within days, the insurance company reversed its decision.
"USAA simply turned around and said we are going to pay this claim," Wallace, president of Wallace Law, said.
Wallace said the quick reversal was both satisfying and concerning.
"It's honestly a disappointing feeling. Like I'm happy I got a good result for Mr. Taber, but it's sad to know that there are thousands of people who are probably getting these same denial letters," Wallace explained.
Wallace said he feels most customers accept denial letters and walk away without getting paid. Now Taber is suing USAA to recover his attorney's fees as well.
"I think a lot of people's frustration is that they feel taken, they feel like suckers and chumps for doing everything they're supposed to and then still being denied," Taber said. "I absolutely did. That was kind of the biggest thing, personally, felt like I've done everything right and I'm being taken advantage of."
TMJ4 called and emailed the attorney representing USAA on this case and emailed USAA directly. We wanted to know why it took Taber hiring an attorney to get his claim paid.
The following statement was sent to us by USAA:
"Water damage claims such as those arising out of the storms and flooding that impacted many in Wisconsin are complex. We've been working since the first day of the storms to help our members who were impacted. While we can't discuss the specifics of any individual claim, what damage may be covered by insurance depends on the specific insurance policy and endorsements and whether the property was impacted by a general condition of flooding in the area instead of an isolated water loss at one property. When our members report claims of flooding damage to their basements, we work with them to investigate and understand what happened to their property and pay any covered damage."
Wallace wants to help other consumers protect themselves when it comes to water damage and homeowner's insurance.
Here are some tips the insurance attorney offers:
1. If you think the information the insurance company is telling you isn't right, trust your instincts. Always seek a second opinion or ask more questions.
2. You have one year to file a lawsuit against your insurance company from the date your incident happens, so mark that date on your calendar.
3. Find a good insurance agent who can spend time, in person, going through what you'd like to see covered. Wallace recommends discussing things like what you do for work, what possessions you have, where you travel, what luxury goods may be in your home, if you live in a disaster zone, and things like that.
4. Document everything. Wallace recommends taking pictures and videos of your incident and ensuring all correspondence is in writing.
This story was reported on-air by Jenna Rae and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
It’s about time to watch on your time. Stream local news and weather 24/7 by searching for “TMJ4” on your device.
Available for download on Roku, Apple TV, Amazon Fire TV, and more.
