Is the insurance industry a scam?
I've paid premiums for insurance for years. We have a flood of black water due to a sewer backup that dog-eared a lot of property and our insurance company suddenly points our exclusions surrounded by our policy that state they won't cover damage due to this. What is the point of have insurance if they don't cover for things that are likely to ensue?
They are more than happy to filch my money, but when I need them they bring really tight. Who reads adjectives those pages of fine print?
Answers:
Having lived in a town where on earth an RAF Harrier crashed on a house....
You could look at whether the water / sewer company have a liability here. Was the cause of the backup on or past its sell-by date your property? If within the boundary you may find you are responsible for the keep of the drain, but if the source was on the street next it may be worth pursuing that route.
Unfortunately, the "fine print" is what covers their derisory asses.
I compare them to pedophiles....you get lured to them as young at heart, innocent customer, only to bring back screwed up the **** in the long run, by afterwards it's too late, and in attendance is no one in that to help you out.
It's freshly another lesson in time.
INSURANCE is synonymous with GREED !!!
Just to be honourable, I do work for national insurance carrier.
The profit margins on property & casualty insurance for the most portion are quite slim. For every dollar within premium we collect, 95-99 cents is paid within claims and expenses (rent, utilities, salaries, attotney fees). That few percent that we seize to keep is afterwards invested to try and maximize the return.
We don't charge any more than we have to.
There is not one policy sold surrounded by the US that has not be approved by the state insurance commissioners. So if you think you've be scammed, you can thank your pals within Harrisburg orTrenton or Richmond or wherever.
Tell them you want policies which cover everything, but be prepared to salary accordingly.
I can guarantee you that almost not a soul reads adjectives those pages of fine print.
However, I can also guarantee you that really NO type of insurance will cover absolutely every single point that can happen to a piece of property. The lone real difference between the different types of property coverage is WHAT they exclude.
I'm sure extremely few people read their entire warranty instruction manual for the cars they purchase, either. But that doesn't variety them any less valid of a contract.
The piece about a contract, you see, is that both party enter into it. So, whether you read the fine print or not (your choice), or asked any questions around exclusions you agreed to the contract when you signed your name on the policy application.
There's really no great mystery to the exclusions clause, by the process. In most homeowners policies, the exclusions clauses are 1-3 pages and are moderately self-explanatory. If anyone would bother to take the time to read them...
Incidentally, it may shock you to know what inhabitants seem to believe should be covered by their homeowners insurance. I catch inquiries all the time something like whether or not it's designed to pay sour the mortgage if the policyholder passes away, or why someone's lost eye specs aren't covered. Seriously -- no one could AFFORD insurance if it covered every single entry people seem to be to think it should. (Oh, and incidentally, near most companies you CAN add a rider to cover sewage backup.)
You're going to the bookie, and complaining that you didn't buy a "show" ticket, you bought a "win" ticket, and your horse placed.
Insurance is a bet. You didn't buy flood, or maybe you didn't buy backup of sewers and drains. It's your house, perchance the LARGEST investment of your life. You didn't bother to read the policy? Sure, most society don't. But you SHOULD.
Then go pay for to your agent, and tell them adjectives the OTHER coverages you want to buy - replacement cost on building and contents, ordinance or law coverage, programmed valuables, flood, backup of sewers & drains, and whatever improvement endorsement the company issues. It might triple your premium, but hey, you'll be covered.
Did your agent not discuss the exclusions of your policy? Most homeowners policies do not cover sewer rear legs up, but I personally income more for my insurance that does cover it. This is a good example of why you should never buy insurance over the Internet. Internet insurance is around sales with the sole purpose, not making sure you get what you requirement and servicing the account after it is sold.
I enjoy heard like mad of people complain nearly insurance, but I have also have people transport me flowers and thank you notes for keeping them from going bust due to a loss, whether it's a liability loss or a medical (health) issue.
Find a good local agent within your area and transformation carriers so this does not surface again. Local agents live in alike community that you do, and usually care for a while more about their clients than ones that live out of town.
I am sorry you have this awful experience. It is not a good agency to find out how good your coverage really is.
I resembling your first sentence "I have compensated premiums for years". But, you have never compensated a dime for backup of sewer and drains coverage. Since you have never rewarded for it why would the company pay for the loss?? Not everything can be automatically covered underneath a homeowners policy. If you felt it be something that was possible to happen did you grill whether it was covered below the policy. Also, you feel that flood is something i.e. likely to occur but if you do not have a separate flood policy you are not covered.
Do that one entity that no one requirements to do and sit down and review your coverage with your agent. Take the time to receive sure that you have what you have need of. It is no one's responsibility but your own.
Many homeowners policies provide added endorsements that can be added to your policy at an auxiliary cost. One of them is sewer & drain backup, which also includes sump pump failure. If you didn't purchase this back-up, then you are not covered. Your agent should own offered this to you. If you don't have an agent (like GEICO) afterwards, that is why you inevitability one. You get what you rate for. No insurance covers all things, but, you can buy insurance for most things, you lately have to wages for it.
In the U.S. the water claims that are covered for homeowners:
1) internal pipe burst (the sink/tub/washing appliance overflowed would probably qualify here)
2) roof leak (would reimburse for water mar, not roof repair, unless something hit the roof)
3) sewer backup/sump pump failure can be covered by help (that means you pay envelope extra for that coverage; as someone else said, a competent independent agent would mention this as an option -- a direct-writer is smaller number likely to). Of course, this would enjoy to be in place earlier the damage occur.
Flood is only covered by flood policies (meaning the undamaged neighborhood got it). There are time frames that habitually prevent adding such coverage for storms as they hit.
Ground dampen is not covered, by anyone, ever.
Damage to vehicles is covered by "excluding collison" on your auto policy, so if your garage gets flooded, you at tiniest have a shot of collecting on the harmed to your vehicles -- exceedingly important for commercial auto.
Leaky roof and leaky underground room aren't covered for the same purpose repairs to a car breaking down isn't covered -- it is a repairs issue; the damage is wear and opening instead of event-caused.