Nobody likes to pay insurance premiums, but if you own your own home, there’s really no way of getting around it. Could you even imagine what would happen to you and your family if your house was destroyed and you didn’t have coverage? All of your possessions (not to mention the roof over your head) are all gone forever. An insurance policy from a quality company offers you piece of mind in a time of need.
All insurance companies are legally obligated to “pay dues and/or premiums” to “the insurance company of the insurance companies” at a state level to cover claims in the event that they go bankrupt. But some of the big name insurers are dragging their feet and trying to cut their claims to keep a healthy bottom line and sweep its customers under the rug. Imagine what would happen if this happened to you!
” Unfortunately for the majority of us, if these companies don’t make the news, the signs don’t usually show up until you’ve already filed a claim. If something that your insurer does strikes you as odd, contact your state Department of Insurance immediately. If you bump into one of the following 3 signs, it might be worth your while to look into getting a new homeowner’s insurance company-
- Your annual premium continues to increase at a higher percentage than the state average Talk to your friends, talk to your neighbors, and talk to other insurance companies in your state to find out how much their average payments went up. If yours is higher for more than a year or two, it’s time to make a switch.
- Your insurance company continuously “stalls” when it comes to investigating a claim and/or making a payment. This is a key sign of a “Bad Faith” insurer, and is unfortunately one of those times when it’s too late to switch to another company. If the stalling continues and/or includes an unreasonable claim denial, misinterpretation of a “word” within your insurance contract, or they advise you not to consult or hire an attorney, consult and hire an attorney.
- Bad Ratings or Negative Marks on A.M. Best, Standard & Poors, or Consumer Reports. A.M. Best and Standard & Poors are each highly regarded in the rating process of insurance companies. Consumer Reports is highly regarded for rating everything under the sun, including insurance companies. After all of the natural disasters and such that have happened over the last year, it would be wise to see how your homeowners insurance company held up, as hind sight is not only always 20/20, but can mean the difference between having a roof over your head and not.
An extra few words of advice: Don’t assume that just because a company is large or small that they are more likely to go “belly-up” than another, as any business can slide into negative numbers if it isn’t properly managed. By staying on top of your insurer’s financial status, you will be able to rest assured for years to come.
