Posted On: November 26, 2008, 2:27 pm CST

Posted By: Reality

I think you will ALWAYS have instances of underinsureds in a cat situation regardless of what company the home is insured under.

Face it, every single agent out there whether they are captive or independent, can do 100% of everything in their power to make sure the insured is covered and it will still be impossible to have the perfect world where all claims are covered 100% with no issues or problems arising. Why? Because it is the nature of our society these days for people to try and cut costs where they feel they can. Most everyone out there hates the fact that they have to have insurance at all because until they get hit they don't see the benefit in a concrete manner until they get hit by a fire or in an auto accident. How many times have you all listened to clients complain how they have been paying insurance for X number of years and never had a single claim and yet they feel they pay too much (regardless of their premium)?

When they do get hit it is easy then to point the finger at the big bad insurance company and say "they screwed me" while at the same time forgetting how many letters or phone calls from their agent asking for an insurance review went unanswered, or when their agent made recommendations they "took it under advisement" but took no action because in the consumers mind all their agent is trying to do is sell them something and take more money from their pocket.

AAALarry, I'm absolutely certain that AAA has refused to pay or paid reduced claims due to underinsurance issues. I'm certain they have denied claims due to policy language issues or technicalities. I'm certain they are no differen't from any other carrier. How am I sure? They are an insurance company. Don't believe me? Google AAA (or any other carrier) and the words "complaint" "hate" "screwed" "refused to pay" "denied" etc..

ALL companies do it and will continue to do it, it is the nature of the beast. The insured tries to get over on the company and the company tries to protect its' ***-ets. Whether it is fudging the commuting mileage or driver rating factors on an auto policy or failing to mention the new room addition on a house or the new roof or the kitchen remodel because they know doing so will possibly cause their rates to increase; insureds will always try to work the system to their advantage, agents will always try to get the best rate they can for their client by using every trick in their playbook and insurance companies will always try to counter this by using every trick in their playbook as well.

There is no such thing as a perfectly righteous insurer, agent or insured.