Consumer complaint received 2019-08-16
Company: JPMORGAN CHASE & CO.
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Sirs My property at XXXX XXXX XXXX has had several water issues over the past 18 months leading to two prior insurance claims and a current claim. The source of the problem has now been identified it is a backup sewer line that had the previous plumbers put a camera through the sewer line they would have seen that the sewer line was damaged. 

The Loss My house is currently rented. On XX/XX/XXXX, the tenants used the powder room and the water overflowed emitting sewer water all over the wooden floors. They immediately called a plumber it was XXXX in the morning and the plumber put a camera through the line, cleaned up the sewer and discovered the sewer line was broken. 
The sewer water damage is extensive, causing damage on the main level and seeping through to the basement, where the celling collapsed and the sewer water went into the carpet in the basement. 
I was notified on XX/XX/XXXX and called the insurance company XXXX XXXX. They were closed for the holidays. XXXX came out to dry out the house and basement. There is still an outstanding bill for the XXXX remediation. 

The Insurance Coverage XXXX XXXX maximum payment for Back up Sewer loss is {$10000.00} ( see attached ) The adjuster came and estimated the work to repair the inside of the house the wooden floors, powder room, basement wall, replace the sewer line, replace basement carpet etc., is {$14000.00}. Hardly enough but because of the maximum back up sewer clause I did not see the point in asking for a re-estimate. Estimates to replace the sewer line ran from {$6500.00} - {$11000.00}. 

Work completed to date. 
This is a major loss involving water. 

1. Sewer Line i. I had to replace the line, to prevent any further damage. 
ii. There is nothing to inspect. The work is done under ground. XXXX inspected the line once the work was completed and validated it was up to code. You can check with them for validation providing them with the address. 
2. Humidifier i. I had to put humidifiers in the basement to prevent mold build up. There is mold growing on the wall and underneath the carpet. 
ii. XXXX provided this work I have not paid them yet. 

Chase Insurance Policy Chase needs to inspect the work in accordance with the Adjusters report. That is the standard process. However, it will not work in this instance because the loss exceeds the maximum coverage. The back up sewer coverage maximum is {$10000.00}. That has already been expended : the line needed to be replaced immediately, the house needed to be dried out with dehumidifiers. The landscaping. 

The powder room and wooden floors will have to be done later and can be inspected but I will have to fund this later. Yet these can be inspected, but will not be done. Again, the monies have been used to fix the sewer line that runs underneath the ground so unless we pull up the ground there is nothing to inspect. Yet I am told you need to inspect to release the funds. I have spent my own money and need the rest to fix the growing mold in the basement. 

I truly understand that you have to validate work, but there needs to be another process for loss that occurs as a result of a backup sewer. THERE IS NOTHING TO INSPECT. A better validation is to call the utility company. XXXX will validate that they certified the work. 

Outstanding Work Time is of the Essence The loss occurred 6 weeks ago. Water is in the house. The house still has a sewer smell. Mold is growing every single day in the basement. I have a contractor who is on standby to work on the mold remediation in the basement. He has to remove the dry wall, carpet etc., I need to pay him to get started this week. Hes quote for the basement is in excess of {$9000.00}. The wooden floors and powder room is another {$6000.00}. Clearly the insurance check will not cover the work to be completed. 

The ask Every day we are waiting to release funds is exacerbating the mold issue. I have already paid out close to {$9000.00} and would like it released to me this week so I can try and stop the bleeding the mold in the basement continues to grow every day during the damp, hot summer months. 
I understand there is a process for Chase Insurance Claims. I have been to Chase branch every day for the past 10 days and no one at the branch understood how to process the check. I am simply asking to be refunded for the monies spent to date so that I can pay another contractor to begin on the basement to stop further damage to the basement. 

Waiting on an inspector to come and check the work completed to date is futile. The work completed is underground the water pipe. A better validation for Chase is for you to contact XXXX who inspected the pipe before the concrete was replaced. 

I am happy to have the inspector can come out to check on the basement once it is completed. But the work to be completed needs funds and I have expended all my funds on the pipe replacement. 

Please advise what we need to do for Chase to refund me for monies spent to date so that I/We can protect the property from further damage.

Company response to consumer: Closed with explanation