What Makes An Insurance Company Best Or Worst? Here’s An Easy Guide To Find Out!

Homeowners insurance companies are, of course, in the business of making money. In order to do so, they use various tactics to make sure they collect their premiums every month while paying out as few claims as possible.  

According to Value Penguin, 32% of insureds believe that they have been victims of fraudulent insurance companies. The report suggests that despite the number of fraud cases growing significantly, fraud in general is underreported.  

When it comes to insurance, people are often wary and settle for whatever seems okay. Many companies as well as individuals unjustifiably profit from that.  

Unfortunately, some homeowners insurance companies train their representatives to persuade anyone who makes a claim to settle for far less than what they really need. Some of the worst practices that a homeowners insurance company can have include:  

Homeowners Insurance Companies Offer Low Coverage Offer Low Coverage

Homeowners insurance companies make initial coverage offers that are far below the value of a claimants’ case. The trick here is that even though the higher offers that will come later may still be inadequate to front your losses, they’ll look good compared to that initial low offer. This is one of the most common tactics that insurance companies use. 

So when you’re dealing with a homeowners insurance company, you should expect a low initial offer. Don’t accept it. Always fight for more. Always aim to get the benefits and compensation you deserve. 

Some Homeowners Insurance Companies May Try To Access Your Entire Personal History

Homeowners insurance companies will try to request access to your complete medical history. That’s so when you make insurance claims concerning medical expenses, they can dig through your medical history to look for any possible reason to avoid paying on your claim.  

Similarly, in the case of homeowner insurance, they will want your entire credit history, family history, and so on. Having a comprehensive file on you gives them possible loopholes through which they can deny your claims.  

If your homeowners insurance company has such a request, have a lawyer make sure that you only sign a personal and medical record authorization that will give the insurance company access to records relevant to your claim.