Name, good one. Companies are so hot to trot about using bots to explain things to the customer, have at it. I would like to see a bot explain a 25% rate increase to an irate customer who also doesn’t understand a deductible. I believe the claims satisfaction guarantee with Allstate is in jeopardy with their ACV settlement process.
Home deductibles are certainly more complex to understand for the layman than auto deductibles, but let’s not forget to include each State’s role in this confusion.
Example regarding hurricane deductibles. Some states allow carriers to have a separate hurricane deductibles where others don’t, but each state defines for themselves when said deductible applies and a lot of times, states tell carriers not to apply the hurricane deductible even if it was a “hurricane” as defined by the state.
Like in the scenario with NJ folks not knowing they have hurricane deductibles – if the state told carriers don’t apply the hurricane deductible even though Sandy technically is considered a “hurricane” per NJ statute, no wonder people living in those areas don’t know they exist if the state specifically told carriers not to apply the hurricane deductible.
Ah, NJ; making insurers pay the deductibles their actuaries developed a rate credit for, due to political pressure! That’s just a variation of ‘make the rich pay a fair share (of taxes)’. In this case, the ‘rich’ just happen to be insurance companies with deep pockets.
The irony is the resulting data is likely going to indicate hyuuuuuge rate increases are needed because the HO coverage took a hyuuuuge hit that year… and prospective rates will be excessive to partly recoup that hit. Oof! NJ pols don’t know how insurance works.
Sir, if NJ made insurers pay the deductibles their actuaries developed a rate credit for, they would **NEVER** tell carriers to waive the hurricane deductible if the loss was due to how NJ defines a “hurricane”. I think you may have misunderstood what I wrote.
FYI – I refuse to engage your trolling insult saying my post was semi-comedy. Let’s try to keep this comment section on topic and free of insults, ya?
The state of NJ DID this time tell carriers to pay the deductibles because they applied ‘politics’, not ‘actuarial principles’ or ‘policy form principles’ to the matter.
It is the state of NJ you should be edifying, not me.
The robots can teach the insureds about deductibles.
Name, good one. Companies are so hot to trot about using bots to explain things to the customer, have at it. I would like to see a bot explain a 25% rate increase to an irate customer who also doesn’t understand a deductible. I believe the claims satisfaction guarantee with Allstate is in jeopardy with their ACV settlement process.
Home deductibles are certainly more complex to understand for the layman than auto deductibles, but let’s not forget to include each State’s role in this confusion.
Example regarding hurricane deductibles. Some states allow carriers to have a separate hurricane deductibles where others don’t, but each state defines for themselves when said deductible applies and a lot of times, states tell carriers not to apply the hurricane deductible even if it was a “hurricane” as defined by the state.
Like in the scenario with NJ folks not knowing they have hurricane deductibles – if the state told carriers don’t apply the hurricane deductible even though Sandy technically is considered a “hurricane” per NJ statute, no wonder people living in those areas don’t know they exist if the state specifically told carriers not to apply the hurricane deductible.
Ah, NJ; making insurers pay the deductibles their actuaries developed a rate credit for, due to political pressure! That’s just a variation of ‘make the rich pay a fair share (of taxes)’. In this case, the ‘rich’ just happen to be insurance companies with deep pockets.
The irony is the resulting data is likely going to indicate hyuuuuuge rate increases are needed because the HO coverage took a hyuuuuge hit that year… and prospective rates will be excessive to partly recoup that hit. Oof! NJ pols don’t know how insurance works.
Sir, if NJ made insurers pay the deductibles their actuaries developed a rate credit for, they would **NEVER** tell carriers to waive the hurricane deductible if the loss was due to how NJ defines a “hurricane”. I think you may have misunderstood what I wrote.
FYI – I refuse to engage your trolling insult saying my post was semi-comedy. Let’s try to keep this comment section on topic and free of insults, ya?
The state of NJ DID this time tell carriers to pay the deductibles because they applied ‘politics’, not ‘actuarial principles’ or ‘policy form principles’ to the matter.
It is the state of NJ you should be edifying, not me.
PS: Thanks, Rosenblatt for that Professor Irwin Corey-ish explanation.
I would change the headline to “Insurance Research Finds Many Homeowners Don’t Want to Understand Deductibles” especially at the time of a loss.
perhaps also append to your suggested title: “… but knew very well when asking for premium credits at policy signing/inception date.”?