Are Home Insurance Companies Offering Fair Claim Payments?

home insurance companies
Some people believe their home insurance companies are not paying them an insurance claim that matches the amount they’re due, according to a new Consumer Reports survey. Consumer Reports also revealed that some individuals who felt slighted in their claim amounts were insured with the nation’s top home insurance companies.

Insurance Claim Payouts Less Than Deserved

A new survey from the Consumer Reports National Research Center revealed that home insurance premiums continue to increase, yet claim amounts may not be rising with them, as reported by ABC News in Houston, TX.

Among more than 11,000 subscribers surveyed who reportedly filed large claims ($25,000 or more) in the past few years, about 19 percent said they did not agree with the claim amount their insurance company wanted to pay.

The center revealed that discrepancies between the payment a homeowner expects and what is actually received aren’t unusual; however, consumers can still feel dissatisfied if they realize their rates have gone up without being fully covered when they file insurance claims.

Getting a Fair Claim from Home Insurance Companies

The report found that, while there’s no surefire way to guarantee you’ll receive the payout amount you want from home insurance companies, a great way to increase your chances is by disputing the claim. Among individuals surveyed, those who disputed the payout amount received an average of $6,000 more than individuals who didn’t initiate a dispute.

When disputing the claim, it is recommended that you request a meeting with your insurer to review your estimate line-by-line. Also, ask to see specific contract language if you have been told your policy won’t cover the damage.

According to the report, customers issued low rankings to several companies, including Allstate and Farmers Insurance, in terms of offering fair payout amounts on insurance claims. However, the report also found that customers were pleased with other big home insurance companies, including Amica and USAA.