Unsurprisingly property insurance claims don't always go the way insureds want them to. Recent feedback from the Fort McMurray wildfires highlight the dissatisfaction consumers have when insurance companies don't fork over money as expected. In reality insurance companies are only obligated to pay for the terms of the contract they have in place.
Insurance Business Canada highlights the realities of an insurance "nightmare" here: http://www.insurancebusiness.ca/news/fort-mcmurray-residents-dealing-with-insurers-a-nightmare-213608.aspx
Most complaints and issues arise when the proper documentation is not available to adjust a claim. The key point to remember is insurance is designed to put you in the place you were immediately prior to a loss. Consumers will sometimes see an insurance claim as an opportunity to "spend money generously" and claim beyond what they are entitled to. This could include steak dinners every night while the insurance company is paying the "extra expenses" while one is evacuated from their home or a new 3D T.V that never actually existed.
This doesn't mean consumers are not entitled to these items if they actually owned them, it means the industry as a whole needs to do a better job at setting expectations when a policy is purchased. The only fundamental issue is consumers are most often looking for the "lowest price" and shy away from the proper advice in order to avoid insurance applications and higher insurance premiums.
The right solution is to set clear expectations from the point of purchase when it comes to insurance. Technology is currently improving this process and giving consumers a real understanding of the risks they truly face. We look forward to the day were most claims are handled and paid to a high degree of satisfaction for all parties.
What do you think?
The Base Team
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