The Federal Gov should get out of the insurance business and let insurance companies do it and provide the NEEDED coverage (not the crap policy they offer) at the rates appropriate for the risk.
FEMA policy doesn’t help a distressed homeowner with a serious loss….it just sort of helps a little. No good for someone without deep pockets.
While I agree with agent2 that the government should get out of the insurance business, but what insurance companies are offering coverage in high hazard zones? “X” zone is doable. AE AV and the others, standard companies don’t want that kind of exposure. Why would any insurance company want the risk?
If the Fed would let them, they could charge appropriate rates for the risk. The Fed won’t let them. Why? Because politicians doesn’t want anyone to pay their fair share i.e. subsidized by you and I.
As to Fed Up’s comments, this isn’t the 1920’s when that kind of corruption was common. I would bet it’s uncommon these days. Companies do try to operate in good faith. Yes there are bad apples.
It’s not a bad apple situation. It is industry wide situation and it occurs all over the country everyday. Some insurers actually instruct their adjusters to 1) If its a denial PROCEED, 2) If it’s a repair or minor damage PROCEED, 3) If you feel the roof or siding should be replaced call our 800 number and we will assign it to a structural engineer. (for denial)
It not the 1920’s, its 2015 and this is what you call “Criteria Gap Corruption”. This is where the insurer uses the definition of damage based on the insurers “Opinion” instead of the definition of damage based on the policy. BILLIONS OF DOLLARS OF CLAIMS ARE DENIED OR UNDERPAID EVERY YEAR WITH THIS METHOD OF FRAUD!!!
This is where the insurer uses the definition of damage based on the engineers “Opinion” instead of the definition of damage based on the policy.
March 4, 2015 at 2:40 pm
KY jw says:
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I don’t know where you live, Fed Up, but in here in backwoods Kentucky, those denials just aren’t happening.
March 3, 2015 at 8:46 pm
jeffrey major says:
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David, the reason the federal government got into selling insurance is because insurance companies lobbied to get out of selling flood insurance. The solution is for individual states or the federal government to get out of the insurance business, and require all insurance companies who wish to sell any type of property and casualty insurance to include flood as a covered peril. If this happened, the marketplace would open up and the cost for flood coverage would lower. The top 5 insurance companies have enough money in reserves right now to pay for every natural disaster in the last 25 years including 911, North ridge earthquake, Katrina and Sandy.
Insurance companies are in business to make money and they do, in billions. If they had to include flood they would still make billions, just a few less.
Jeff – what business should be forced to provide coverage at a loss? Should grocery stores be required to provide food for less so people would be healthier? They would just make a little less. Should agents decrease their commissions so people pay less? We would just make a little less.
Forcing insurance companies, especially mutual companies, to provide flood insurance doesn’t seem right. If the gov’t does that to insurance, should they do it to all? My cable company should be forced to provide more channels and quicker internet for less money, they will still have billions, just a few less. Who is John Galt?
Does anyone really still not realize that engineers and insurers work together to steal from the insured policy holders on a daily basis and their fraud is in the billions. Not just in this case but also in tens of thousands of hail and wind damage claims where insurers use the engineers “Opinion” as the definition for damage instead of the definition of damage that is included in the policy. Whether its FEMA’s money or the insurers money it doesn’t matter. The insurer hires an engineer when they want to deny or underpay a claim and only the engineers who comply with that system are fed more claims. This corruption between the engineers and the insurers is one of the biggest frauds in the industry. This is nothing new, it is simply the first time the corrupt relationship has ever been investigated at this level.
My prediction, THIS CORRUPTION IS GOING TO COME TO AN END SOON!!!!!!!!
Yeah that happens all the time. I’m surprised lawyers have not figured it out and called it something like “bad faith”. Check under your bed much before you turn the lights out?
What is your position, insurer, adjuster? Are you telling me you don’t know that anytime the insurer wants to deny a hail or wind claim and avoid a bad faith claim they call in an engineer to give their “Opinion” not relevant to the policy and then use such opinion to deny the claim?
It happens everyday in every city in the country and insurers know what they are doing. They are stealing from the insured on a massive scale and hiding behind paid engineers.
I looked under my bed as you suggested and saw the attorney general bringing down the insurers and engineers who are committing this fraud. You might want to look behind your back because they might be coming for you.
Ok, now seeing that I am in the claims end of this business, FEMA needs to hire people with claims knowledge and damage experiense. FEMA Personal dont know crap, they can not tell damage from wear and tear, flood from wind, just a waste of taxpayer money.
As a compulsive viewer of 60 Minutes it finally occurred to me to comment. I am recalling this FEMA episode (1 of many) that the fraud is after the claims (hurricane Sandy).I stipulate that the bureaucracy is so inherent – who can figure? I have been jumping through hoops for years. This red tape nightmare takes someone entirely more educated and much healthier than I am. 3 years ago, prior to closing on my mobile home i discovered that I was required to have flood insurance. The area was re-zoned under a “blanket” as a 100 year flood plain. In other words, FEMA needed money. No survey was done to support that this is a possibility. It is clearly not going to ever happen.I was told that after a year I could appeal. I started appealing before the year was up. However after a year of appealing to have my area rezoned and many denials I had to hire a surveyor and pay for it out of my disability income. Really? I also had to pay another year of flood insurance. Well that worked, I won. I was refunded the 2nd year of flood insurance. I appealed to get refunded the first year as well as the surveyor fees. I was told in response to my appeal that the “policy” is only to refund 6 months and I am able to drop the requirement through the mortgage corporation to carry flood insurance. I lost the appeal. What? It took me 2 years and hiring a surveyor to get this far. They wear you down. Further more- even though the the surveyor reported the entire area; others in this community have to still have flood insurance. They are free to appeal. If I hadn’t paid for the surveyor, I would have been on the hook for flood insurance for the duration.
Maybe the people at FEMA will get fired like the people at the VA and the IRS. Yeah, right! Lean forward America.
Breitbart regular. Right?
Boris Nemtsov much?
Hey Comrade- I had breakfast with a Russian this morning that just moved from Moscow 2 months ago. He said KGB did it. Who woulda thunk it.
The Federal Gov should get out of the insurance business and let insurance companies do it and provide the NEEDED coverage (not the crap policy they offer) at the rates appropriate for the risk.
FEMA policy doesn’t help a distressed homeowner with a serious loss….it just sort of helps a little. No good for someone without deep pockets.
While I agree with agent2 that the government should get out of the insurance business, but what insurance companies are offering coverage in high hazard zones? “X” zone is doable. AE AV and the others, standard companies don’t want that kind of exposure. Why would any insurance company want the risk?
I’ve been replacing 5 to 7k FEMA VE policies like crazy with surplus at around $3500. Losing my ass on commission but saving my clients a ton.
If the Fed would let them, they could charge appropriate rates for the risk. The Fed won’t let them. Why? Because politicians doesn’t want anyone to pay their fair share i.e. subsidized by you and I.
As to Fed Up’s comments, this isn’t the 1920’s when that kind of corruption was common. I would bet it’s uncommon these days. Companies do try to operate in good faith. Yes there are bad apples.
It’s not a bad apple situation. It is industry wide situation and it occurs all over the country everyday. Some insurers actually instruct their adjusters to 1) If its a denial PROCEED, 2) If it’s a repair or minor damage PROCEED, 3) If you feel the roof or siding should be replaced call our 800 number and we will assign it to a structural engineer. (for denial)
It not the 1920’s, its 2015 and this is what you call “Criteria Gap Corruption”. This is where the insurer uses the definition of damage based on the insurers “Opinion” instead of the definition of damage based on the policy. BILLIONS OF DOLLARS OF CLAIMS ARE DENIED OR UNDERPAID EVERY YEAR WITH THIS METHOD OF FRAUD!!!
Your living in the 1920’s if you don’t see it.
I made a mistake:
This is where the insurer uses the definition of damage based on the engineers “Opinion” instead of the definition of damage based on the policy.
I don’t know where you live, Fed Up, but in here in backwoods Kentucky, those denials just aren’t happening.
David, the reason the federal government got into selling insurance is because insurance companies lobbied to get out of selling flood insurance. The solution is for individual states or the federal government to get out of the insurance business, and require all insurance companies who wish to sell any type of property and casualty insurance to include flood as a covered peril. If this happened, the marketplace would open up and the cost for flood coverage would lower. The top 5 insurance companies have enough money in reserves right now to pay for every natural disaster in the last 25 years including 911, North ridge earthquake, Katrina and Sandy.
Insurance companies are in business to make money and they do, in billions. If they had to include flood they would still make billions, just a few less.
Jeff – what business should be forced to provide coverage at a loss? Should grocery stores be required to provide food for less so people would be healthier? They would just make a little less. Should agents decrease their commissions so people pay less? We would just make a little less.
Forcing insurance companies, especially mutual companies, to provide flood insurance doesn’t seem right. If the gov’t does that to insurance, should they do it to all? My cable company should be forced to provide more channels and quicker internet for less money, they will still have billions, just a few less. Who is John Galt?
I’m kind of ok with cable companies providing better internet for less. :D
Jeffrey- require insurance companies to include a peril that causes more damage than any other and premiums will go down ???
Does anyone really still not realize that engineers and insurers work together to steal from the insured policy holders on a daily basis and their fraud is in the billions. Not just in this case but also in tens of thousands of hail and wind damage claims where insurers use the engineers “Opinion” as the definition for damage instead of the definition of damage that is included in the policy. Whether its FEMA’s money or the insurers money it doesn’t matter. The insurer hires an engineer when they want to deny or underpay a claim and only the engineers who comply with that system are fed more claims. This corruption between the engineers and the insurers is one of the biggest frauds in the industry. This is nothing new, it is simply the first time the corrupt relationship has ever been investigated at this level.
My prediction, THIS CORRUPTION IS GOING TO COME TO AN END SOON!!!!!!!!
Yeah that happens all the time. I’m surprised lawyers have not figured it out and called it something like “bad faith”. Check under your bed much before you turn the lights out?
What is your position, insurer, adjuster? Are you telling me you don’t know that anytime the insurer wants to deny a hail or wind claim and avoid a bad faith claim they call in an engineer to give their “Opinion” not relevant to the policy and then use such opinion to deny the claim?
It happens everyday in every city in the country and insurers know what they are doing. They are stealing from the insured on a massive scale and hiding behind paid engineers.
I looked under my bed as you suggested and saw the attorney general bringing down the insurers and engineers who are committing this fraud. You might want to look behind your back because they might be coming for you.
Agency owner 8 years and 10 years claims adjuster.
Yours?
Fed Up- I bet you want the gov to handle it like Obumacareless ?
This is an OMG moment: I agree with jack. I better buy a lottery ticket today. ;)
Ok, now seeing that I am in the claims end of this business, FEMA needs to hire people with claims knowledge and damage experiense. FEMA Personal dont know crap, they can not tell damage from wear and tear, flood from wind, just a waste of taxpayer money.
As a compulsive viewer of 60 Minutes it finally occurred to me to comment. I am recalling this FEMA episode (1 of many) that the fraud is after the claims (hurricane Sandy).I stipulate that the bureaucracy is so inherent – who can figure? I have been jumping through hoops for years. This red tape nightmare takes someone entirely more educated and much healthier than I am. 3 years ago, prior to closing on my mobile home i discovered that I was required to have flood insurance. The area was re-zoned under a “blanket” as a 100 year flood plain. In other words, FEMA needed money. No survey was done to support that this is a possibility. It is clearly not going to ever happen.I was told that after a year I could appeal. I started appealing before the year was up. However after a year of appealing to have my area rezoned and many denials I had to hire a surveyor and pay for it out of my disability income. Really? I also had to pay another year of flood insurance. Well that worked, I won. I was refunded the 2nd year of flood insurance. I appealed to get refunded the first year as well as the surveyor fees. I was told in response to my appeal that the “policy” is only to refund 6 months and I am able to drop the requirement through the mortgage corporation to carry flood insurance. I lost the appeal. What? It took me 2 years and hiring a surveyor to get this far. They wear you down. Further more- even though the the surveyor reported the entire area; others in this community have to still have flood insurance. They are free to appeal. If I hadn’t paid for the surveyor, I would have been on the hook for flood insurance for the duration.