By in Random

Insurance, the Biggest Scam Against Consumers

These days every time you turn around there is another type of insurance policy being pushed by the insurance industry. The worst part is that these insurance companies act like they are looking out for the consumer and yet when it comes time for a policy holder to file a claim, they act like it will bankrupt them. I try to figure out how they can apply a ridiculous exception in order not to pay on a claim.

Their biggest weapon they use is the exception for different types of natural disasters; tornadoes, hurricanes, wild fires, flood water and earthquakes. When it comes to a your home, you really need to be careful that you read your homeowners policy to see what exactly they cover and what they don't. The worst thing that can happen to you is to find out that you don't have tornado coverage after EF2 tornado blows through and demolishes your house.

I would love to see an overhaul of how they are allowed limit coverage and force consumers to add riders or even have completely separate coverage in order to be sure they are protected.


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Comments

iamshane487 wrote on March 31, 2015, 11:36 PM

There are a lot of scammers nowadays and we need to be vigilant.

allen0187 wrote on April 1, 2015, 1:44 AM

I worked in insurance before and the best advice that i can give to those who want to get insurance is to know what they truly need and to read all the provisions before signing the dotted line. Be eudcated with what type of insurance best applies to you.

Alexandoy wrote on April 1, 2015, 4:54 AM

Insurance is actually a scam of sorts but it is legal. Besides, it is now a requirement like house insurance and car insurance.

Soonerdad3 wrote on April 1, 2015, 6:38 AM

Allen, that is part of the problem, it should not be that way. Insurance companies make it so difficult to know exactly what you need. If you own a home and need insurance it should only matter how much your home is worth and what is inside when it comes to insuring it. It should not matter what damaged it beyond intentional arson. All else should be covered, no one should have to find out that after a disaster and their home is destroyed that the insurance company came up with a clause in the policy that they will not have to pay.

Soonerdad3 wrote on April 1, 2015, 6:41 AM

That has made it even worse, when the government or the bank requires you to pay for insurance, but the insurance companies can refuse to payout on a claim for just about any reason.

wolfgirl569 wrote on April 1, 2015, 9:42 AM

It is just a way to make money and then more money, the ones that have stock in the companies are many of the same ones setting the regulations, so you will not see to many changes happening

JohnRoberts wrote on April 1, 2015, 9:47 AM

How about when you are in an auto accident and the other guy was at fault and your rate goes up anyway. I once asked why? and the answers were "just because" and "there's an assumption you must have somehow been at fault" for the accident though innocent.

scheng1 wrote on April 1, 2015, 9:47 AM

This just shows that consumers have to read carefully. After all, insurance companies have the money to hire all the best lawyers to write such complicating document.

LeaPea2417 wrote on April 1, 2015, 11:00 AM

It is true that homeowners need to really read the fine print of their homeowner's insurance policy.

Soonerdad3 wrote on April 1, 2015, 1:06 PM

That is a whole different issue that is equally upsetting.

Soonerdad3 wrote on April 1, 2015, 1:08 PM

No, this is not about needing to read better, it is about an industry that takes advantage of the consumer every chance they can.

Soonerdad3 wrote on April 1, 2015, 1:10 PM

This is not about reading fine the print better, it is about there should not be any fine print, everything should be covered under any policy. The fact that they have so many exceptions is the problem.

Last Edited: April 1, 2015, 1:12 PM

morilla wrote on April 1, 2015, 11:36 PM

There are several levels of aggravation and 'charade' built into the system these days.

The first is "read the fine print" or "all of the provisions." Even someone with legal training or a full-fledged lawyer occasionally has trouble understanding it fully. Worse, no two 'legal experts' will necessarily be able to agree. The second is simply the fact that they hire all kinds of agents and adjusters simply to mitigate or deny a claim. Exactly why do I have insurance and pay all those premiums if it's to finance people looking to lessen or deny the claim when I need it? Yet another level is when it becomes Government-mandated; whether it's health, car, earthquake, home, whatever. They tell you it's about lowering costs, yet the actual "cost" never seems to be 'lowered' and typically goes up.

Now, if the 'normal' person had the lobbyists the insurance companies do...

peachpurple wrote on April 2, 2015, 2:51 AM

it is not compulsory for us to buy insurance in our country. If you are working every company buys the cheapest insurance policy for the employees, for death only, medical, you have to buy your own.

Bobbydem wrote on April 3, 2015, 9:54 PM

Many insurance companies attempt to get you to overinsure with personal insurance, medical, redundancy, funeral etc. The most important thing to do is to access your personal risk and liability and then decide what you need. I used to work in IT for a life insurance company and this is what a good agent advised me to do regularly. I never accept the 'free review' that places try to push on you. When it comes to household insurance you do have to read the fine print and regularly review your policy especially if you do any renovations on your home. After the Christchurch earthquake many people found they were underinsured because they hadn't updated their policies when they finished adding on.

Soonerdad3 wrote on April 3, 2015, 10:57 PM

Unfortunately, you are exactly right about reading the fine print and that is what angers me the most. It is all the exceptions they hide behind that is buried in the fine print. No one can possibly anticipate every type of loss and buy a policy that covers it all, on top of that it would be unbelievably expensive.

paigea wrote on April 4, 2015, 10:46 AM

It really is important to read and understand what you are and are NOT insured for.

alexdg1 wrote on April 4, 2015, 7:01 PM

Supposedly, our representatives and Senators are our lobbyists. Alas, they serve those whose campaign contributions help them get elected.

Soonerdad3 wrote on April 4, 2015, 7:19 PM

There is no disagreement there, my point is that the fact there is any fine print in the first place for the insurance company to weasel out of paying in the real problem. We as consumers buy insurance in the event of something happens to our property period, we don't expect to be sold a policy that does not cover our property from damage. You cannot possibly be expected to know every type of threat to your property and the only time you find out is when it is damaged and you get told by the insurance company "oops, that is not covered" and we will not be paying for the damage.