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The Minneapolis Tribune had an interesting story about a homeowner who has been caught in an insurance company limbo as they try to obtain coverage after a damage claim. The video with the story is worth watching.

Now, there are probably a lot more facts that the story didn’t include. But, on its face, it really does look like people aren’t receiving the coverage they paid for. For years, insurance companies have taken advantage of homeowners claims, simply because the math doesn’t work out well for the person making the claim.

If their claim for damage is for X dollars, that is the amount that the policy should pay for. It the company says no, and they have to hire an attorney for help, their claimed damage doesn’t get bigger, it is just their expenses that do. So what happens is that the insurance companies come in knowing they are fully represented, but that the person making the claim in most cases won’t be.

Thankfully, law changes have made it possible for the policyholder to bring a good faith violation claim in some cases, but that really is an additional hassle and requires much more then they ever wanted or needed to be involved in.

What I found interesting in this case is that the person’s renters insurance is paying at the same time the homeowner’s is seemlingly fighting the issue of whether the loss ever happened. It’s a sad case of places people are pushed into. Often, the delay leads to people walking away or accepting far less then what they are rightfully owed.

It’s not unusual for people to come to us, not because they are looking for a big pay off, but simply because they were treated like crap by their own insurance companies. The secret is out there is that many of these companies could cut down on claims just by taking care of their own customers.

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