Claims Estimates for Hurricane Ike Still 'Fluid,' Commissioner Says
Texas / South Central News • December 2, 2008
As of late November, estimates of insured losses from Hurricane Ike, which hit Galveston on Sept. 13, were in the $6 billion to $8 billion range, according to Texas Insurance Commissioner Mike ...
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Subject: RE: Ike Insurance Problems
Posted On: December 9, 2008, 10:45 am CST
Posted By: Peon Agent
Comment:
Marie,
I'm truly sorry that you are experiencing problems, but I know for a fact that everyone has not had a similar experience. I personally know of a LOT of very satisfied claimants. In fact, I know many people that received more money than they really needed. But, that doesn't make it any easier when you still have a problem. If 99.9% are handled correctly, and you fall into the .1%, then the trouble is still just as bad.
Our agency has about 1200 households insured for personal lines coverage (autos and homes). We have only had about 6 complaints from our preferred company clients, and every one of those were resolved with 1 or 2 phone calls from our agency. I'm very thrilled with the Independent carriers that we have partnered with to serve our agency's clients! For the record, I'm certain we will still have the mandatory couple of clients that can't be satisfied no matter what the company does. Knock on wood, I haven't had to take that call yet.
However, the low-bid companies have had more problems. Unfortunately, we do have a couple of those companies that we represent as well. I don't know of any that haven't paid what they should yet, but they do take much longer than the others.
And, the Texas Fair Plan has been an absolute disaster. Not just for my agency, but other agents that I know. Fortunately, we only have about 30-40 Fair plan policies on our books. Of those, however, a majority have filed claims and still have no money yet. On the other end of the spectrum, the carrier where we place the most of our business rarely took more than 7-10 days to have a check in our client's hands.
That was an unexpected thrill, I can tell you. Quite honestly, after seeing the delays from Katrina and Rita, we fully expected it to take months before all of our clients would even see an adjuster. It's a supply and demand thing, and there are only so many adjusters.
Flood is always slower than the average insurance claim ...because it's a Federal bureaucracy. Texas Fair Plan is a State bureaucracy. So, delays are simply expected although unfortunate. The most disappointing thing about the Texas Fair Plan is the fact that it is supposed to be a carrier of LAST resort. Unfortunately, they were priced so low, they became a standard market for too many low-bid agents and customers. They were bloated beyond belief. Way too many of those policies in the market. It is not possible that there are that many uninsurable homes in our State. So, people chose that market for the good price.
Just another supporting argument that price should not be the end-all decision maker when it comes to something as truly important as protecting your most valuable assets.
As far as most people being apathetic, I don't believe that's true. If it is, that's pitiful. If I had a claim that was not handled properly on my own property, I'd be all over them and the Department of Insurance. Are you kidding me?
Why don't you have a copy of your insurance policy? If I'm a betting man, you were the client that just wanted the cheapest price and the policy itself wasn't important …just one of those annoying mortgage company requirements. Otherwise, you would have had a copy of the policy with your other important papers …Mortgage Loan documents, Title Policy, Birth Certificates, Warranties, etc. Do you keep any of those important papers?
Subject: RE: Ike Insurance Problems
I'm truly sorry that you are experiencing problems, but I know for a fact that everyone has not had a similar experience. I personally know of a LOT of very satisfied claimants. In fact, I know many people that received more money than they really needed. But, that doesn't make it any easier when you still have a problem. If 99.9% are handled correctly, and you fall into the .1%, then the trouble is still just as bad.
Our agency has about 1200 households insured for personal lines coverage (autos and homes). We have only had about 6 complaints from our preferred company clients, and every one of those were resolved with 1 or 2 phone calls from our agency. I'm very thrilled with the Independent carriers that we have partnered with to serve our agency's clients! For the record, I'm certain we will still have the mandatory couple of clients that can't be satisfied no matter what the company does. Knock on wood, I haven't had to take that call yet.
However, the low-bid companies have had more problems. Unfortunately, we do have a couple of those companies that we represent as well. I don't know of any that haven't paid what they should yet, but they do take much longer than the others.
And, the Texas Fair Plan has been an absolute disaster. Not just for my agency, but other agents that I know. Fortunately, we only have about 30-40 Fair plan policies on our books. Of those, however, a majority have filed claims and still have no money yet. On the other end of the spectrum, the carrier where we place the most of our business rarely took more than 7-10 days to have a check in our client's hands.
That was an unexpected thrill, I can tell you. Quite honestly, after seeing the delays from Katrina and Rita, we fully expected it to take months before all of our clients would even see an adjuster. It's a supply and demand thing, and there are only so many adjusters.
Flood is always slower than the average insurance claim ...because it's a Federal bureaucracy. Texas Fair Plan is a State bureaucracy. So, delays are simply expected although unfortunate. The most disappointing thing about the Texas Fair Plan is the fact that it is supposed to be a carrier of LAST resort. Unfortunately, they were priced so low, they became a standard market for too many low-bid agents and customers. They were bloated beyond belief. Way too many of those policies in the market. It is not possible that there are that many uninsurable homes in our State. So, people chose that market for the good price.
Just another supporting argument that price should not be the end-all decision maker when it comes to something as truly important as protecting your most valuable assets.
As far as most people being apathetic, I don't believe that's true. If it is, that's pitiful. If I had a claim that was not handled properly on my own property, I'd be all over them and the Department of Insurance. Are you kidding me?
Why don't you have a copy of your insurance policy? If I'm a betting man, you were the client that just wanted the cheapest price and the policy itself wasn't important …just one of those annoying mortgage company requirements. Otherwise, you would have had a copy of the policy with your other important papers …Mortgage Loan documents, Title Policy, Birth Certificates, Warranties, etc. Do you keep any of those important papers?