Insurance coverage: Read Your Insurance Policy
January 6, 2011
Often times we buy property insurance, homeowner insurance, car insurance, health insurance or any other sort of insurance by asking around and then signing on the dotted line of whatever papers the lowest bidder insurance company puts in front of us. Often times even, you may sign some preliminary papers only to receive the actual policy spelling exactly what you have bought a few weeks after you have already signed all paperwork and perhaps even paid your premiums. We simply accept what the agent gives us to sign and we are on our merry way.
Too many people find out too late the extent of their insurance and it is not always a happy news when they get the denial letter from their insurance advocating a clause or another in their policy as the basis for their decision. Read your policy and make sure your understanding of the extent of coverage you have is in par with that which is spelled out in writing in your policy.
Tunnell joined thousands of people in the U.S. who already knew a secret about the insurance industry: When there’s a disaster, the companies homeowners count on to protect them from financial ruin routinely pay less than what policies promise. Insurers often pay 30-60 percent of the cost of rebuilding a damaged home — even when carriers assure homeowners they’re fully covered, thousands of complaints with state insurance departments and civil court cases show.Paying out less to victims of catastrophes has helped produce record profits. In the past 12 years, insurance company net income has soared — even in the wake of Hurricane Katrina, the worst natural disaster in U.S. history.