Merry Christmas, Happy Holidays, and Season’s Greetings! I hope all of you are enjoying some well-deserved time off. And since many of you are on holiday, I’d like to pass along some light insurance reading that may interest you.
It’s no secret that insurance companies are in business to make money, but the lengths some insurance companies go to in order to increase profits is alarming. In fact, dozens of posts on this blog have alerted our readers to the improper actions some insurance companies may take to put profit above their policyholders’ interests.
Fire insurance claims spike on Thanksgiving Day. I became interested in this fact after viewing the following commercial by Allstate:
Policyholders with flood and all risk policies usually do not have as many problems collecting benefits following a hurricane where wind and flood damaged a structure. Those with only one policy are not so fortunate. When the combination of payments from both policies is less than the cost to repair or when delays in payments occur, numerous issues arise.
Continue Reading Double Recovery and Actual Cash Value Analyzed in Katrina Wind Flood Scenario
One of the questions I hear most often from policyholders is, “why is the insurance company handling my claim in an inadequate fashion?” Often, the policyholders are confident that if they could just explain the situation and get someone’s attention at the insurer’s main office, their claim would be resolved. Many of my clients and former clients explained they tried to get the corporate office’s attention—and to no avail. This is usually the point where conversations start with a neighbor or co-worker about what to do; late night internet searches are done, and the insureds realize they need to start keeping a tally on just how poorly the claim is being handled. This is when public insurance adjusters are often hired. A client explained to me that she was happy to pay someone 10% of her claim so she could carry on with her everyday life and pass the burden on to a professional. She explained that dealing with the insurance company forced her to take time away from her job, and that if she spent any more time on the phone with the insurance company between 9-5, she was sure she was going to be in trouble with her boss. Now, the same client has also hired a lawyer to get the insurance company’s attention and to get the claim resolved.
This Property Insurance Coverage Blog set record visits last month. Thank you! I noticed a significant drop as the Easter weekend started. The Florida legislature took a well deserved breather last week as well. So, it seems like it is a good time to get caught back up.
Insurance advertisements have never been more entertaining. While perusing the net for information regarding Safeco and Liberty Mutual, I came across a number of insurance company television advertisements. We often use ad firms to find and pull the ads of some of our opponent insurers. It can be done cheaply through YouTube.
Allstate Insurance Company lost a bench trial involving the claims practices employed in its Claims Core Process Redesign program first implemented in the 1990’s. The findings by the trial court are significant because the Court indicated that those claims practices violate standards which are routinely violative of unfair trade and claims practices in most of the states. The findings indicate these were done as a general business practice.
Suppose you knew that your insurance company had started a new claims practice program called “Quantum Leap” to increase corporate practices by making certain no claim was overpaid—would you buy that insurance? Would you feel peace of mine if you knew that secret program was in place and had such a claims philosophy?
Consumer Reports published an article this month revealing the results of its survey of customer satisfaction with homeowner’s insurance and tips on coverage and exclusions to be aware of when purchasing insurance for your home.