However, that doesn’t stop Sam’s man of integrity, Robert Hartwig’s and his spin meisters at the Insurance (mis)Information Institute, from dismissing a recent Consumer Reports survey that found half of the Katrina impacted residents that responded had trouble with their insurer with a full 26% saying they were under paid. The National Underwriter has the story and related III spin (h/t Editilla):
Half of Consumer Reports’ readers who filed insurance claims resulting from Hurricane Katrina in 2005 said they had problems with their insurer, the magazine reported.
In the September issue of the consumer watchdog’s magazine, the organization says 26 percent of its readers also complained that they were paid too little for their claims.
“A disaster tests everyone, and in the eyes of our readers insures often failed that test,” the magazine said.
The magazine’s readers did have high praise for three insurers—Amica Mutual Group, USAA Group and the Chubb Group.
Readers said they were dissatisfied with the service of large insurers and delays in claims payments were a common complaint.
People with good credit scores and claims history received more favorable treatment from insurers than those with poor credit scores and claims history, the article said.
The vast majority of consumers, however, are content with their homeowners coverage, Consumer Reports found.
Responding to the article, Loretta L. Worters, spokeswoman for the Insurance Information Institute, said the report is typical of what the magazine writes, with an emphasis on the negative despite some positive news that they downplayed.
She called the survey narrow because it only reflects the opinions of Consumer Reports’ readers.
I’m not a consumer report reader but I have news for Fräulein Worters. If you took a poll of the Slabbers with private insurance before Katrina that percentage would go up to around 100%. Robert Hartwig, remains stuck on stupid with his meme that we didn’t have flood insurance. Of course flood insurance turned out to be the best wind insurance money could buy.
Again props to Chubb and Amica for bearing out once again some insurers conduct their business ethically. USAA fails here due to their treatment of slab claims, just ask Admiral and Mrs. Lisanby and the Corbans.
4 thoughts on “Play it again Sam. No Amount of PR will cover what insurers did to the people here after Katrina.”
Good post, Sop. What I would be interested in knowing is whether this survey differentiated between homeowner claims and NFIP claims. Satisfaction on flood claims probably would be much higher than 76%. In the words of one claims adjuster, who was doing an inspection for both the flood (WYO) and homeowner’s claims on the same house, “I’ll load you up on flood if you don’t hurt me on the wind.”
I think it took all comers and that would include NFIP.
My newest employee is a St Bernard Katrina victim now living here in the woods that would fall in the satisfied catagory, at least until I asked her how she knew the extent of wind damage since she was tendered NFIP and her wind claim was adjusted before she was allowed back.
Since Consumer reports is only available via paid subscription (and I don’t subscribe) I can’t answer to their methodology. The results are not scientific for certain but well bear out what those of us on the ground here know from simply interacting in society.
The funny thing is I had a potential new client call me because Allstate maxed her family out on flood insurance, but tendered under $10,000.00 on wind. When the time came for her and her husband to meet me in order to sign the retainer agreement she backed out saying “we got a lot of money already with the flood insurance money and we don’t want Allstate dropping us if we sue.” I explained to her the legal and common sense fallacies associated with her reasoning, but said its your choice and call me if you change your mind.
Anyway, many people in southeast La. were of the same mindset since they got all of their flood money. Those same people had no idea who was really aping the flood claim and what the extent of their covered losses were under their homeowner’s policy. All we can do is educate the populace and hope they have the intestinal fortitude for litigation.
The numbers of complaints to Congressman Gene Taylors about NFIP payments were reported by Mr. Taylor as being 0. Hopes this helps.
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