Insurance Claims

[sumdumguy]

Was just reading a CBC article about the ends insurance companies will go to get out of paying claims. We are currently working on a claim for wind damage that blew through here a month ago. We have full-cover replacement cost insurance. Any tips from experience?

[Rareearth]

They make out like they are your friends, and the premiums are very reasonable. Every one has insurance.

Here is the nitty - gritty,
“the job of insurance agents, and companies is to collect as much in premiums as possible and to reduce payouts”

It’s that simple, lots of excuses

[GDR]

Be honest and realistic and you will be treated well. Realize that insurance is designed to put you back in the same position you were in prior to loss, it's not a maintenance or upgrading plan. Replacement cost does both and that is fine if it applies. I bet a third of claims the customer starts out by embellishing what they had or outright fraud attempt, people feel they "deserve it" because they have paid premiums. Adjusters are not stupid as they do it every day and once the relationship goes sour it's pretty hard to work together.

Best way to prepare is to have an estimate from a contractor to do the work prior to settling with the adjuster. That way you know where you stand, if what is being offered will not cover the estimate have a discussion, the difference could be from either side, it will get worked out. Often they will have a list of preferred contractors, it's a good way to go as it is easier to deal with if problems arise and the insurance company will stand behind both parties to resolve issues. If you hire your own guy and he doesnt perform that is no longer the insurance companies problem.

If you cash settle and choose not to repair coverage will be restricted in the future and will cause coverage problems.

Lastly do not claim small amounts, they look at claims frequency more than amounts. Someone with 3 claims of $500 in a short period of time is more likely unable to find coverage or increased premiums than someone with 1 claim of $500,000.

[AlbertaFarmer5]

The few times I have had to make claims, I have always thought the insurance was more than fair. Very first time was shortly after I started driving, I rolled my vehicle due to being hit by another vehicle which had blown through a stop sign. I got more than I paid for the truck.

But my opinion of insurance is there needs to be a way to help people take more personal responsibility rather than relying on insurance. Every year we get hail storms, every year insurance pays for replacing cheap vinyl siding and shingles and dents in vehicles parked outside, and holiday trailers. Then all of our insurance bills go up to pay for it. The vehicles get written off, payed out, then driven for another decade with hail dents. The siding and shingles get replaced with the same products. The holiday trailers still sit outside in the elements, repeat again next summer.

We don't carry insurance on anything that isn't mandated, I'd rather take responsibility and take preventative measures than wait for the windfall of insurance and subsidize everyone else taking advantage of the system.

[Sodbuster]

The rule for me on making claims is the claim has to be about 50% more than my premium to make it worth claiming, otherwise the insurance companies will surcharge and recoup their loss in a few years.