When you buy an insurance policy, the insurance provider acts as if the goal is to help you. They want to give you security and stability. If your home is damaged in a fire or a tropical storm, they want you to help you put everything back to normal. At least, that’s what they want you to believe.
But if this was the case, wouldn’t it be easier to get the money you needed? Why does it seem like it’s a hassle or like you’re never going to see the full value for your claim?
Considering the real mindset of the insurance company
What you have to remember is that, to the insurance company, everything that they pay out is a loss. In an ideal world, they would collect billions every year in insurance payments and not have to honor a single claim. The insurance company exists to make a profit — not to help you — and that is how they do it.
To limit their losses, insurance companies will try to get out of paying what they should. They can’t deny all claims, obviously, but they’ll look for even the smallest reasons to deny as many as possible. If they have to pay something, they’ll look for ways to at least reduce the value of the claim.
To the insurance company, every denied or reduced claim is a win. That is the goal. Yes, it is directly at odds with your goals and even what they told you when you bought the policy, but you have to remember what they are really working toward: maximum profits.
What can you do?
The problem, of course, is that you need to get the money from your claim to repair your home. If they deny that, you either cannot make the repairs or have to do so out of your own pocket. You may find yourself wondering why you bought the policy in the first place. If you do find yourself in this position and you’re looking for ways to get them to honor your full claim, be sure you consider all of the legal options at your disposal.