So that’s 10.5% of total claims, but the article doesn’t do a good job explaining if this is an actual problem. they are just throwing numbers around without explaining why these claims are being denied except for suppositional statements like these:
Insurance claims can be denied for a number of reasons, including but not limited to insufficient information, missed premium payments, fraudulent claims, or missed filing deadlines. A closed claim without payment is a claim deemed not currently payable by the reporting insurer, FLOIR stipulates.
“There are a variety of reasons why a property insurance claim may be closed without payment,” Mark Friedlander, director of corporate communications at the Insurance Information Institute, previously told Newsweek. “Most likely, these are primarily flood claims that are not covered by a standard property insurance, condo insurance or flood insurance policy. You need flood insurance to cover a flood claim.”
Yes, but it’s easier to imagine a person getting $0 for their flattened house than it is someone trying to find things to blame on the hurricane for $$$.
Yeah it’s definitely not that floods are a damaging consequence of hurricanes.
I can understand that flood damage isn’t covered by those plans and still think that the consequences of for profit insurance are bullshit. People typically don’t skip out on full coverage insurance as a get rich quick scheme. It tends to be a consequence of not being able to afford their inflated prices. Safety nets like insurance do not have room for corporate profits. As a result people suffer.
I agree that insurance should not be a for-profit industry, but I am skeptical that the insurance is over-priced given the inevitability of the destruction of many of these properties. The actuarial risk is so high that many for-profit insurance companies are abandoning the market. If insurance is astronomically expensive, the area probably isn’t habitable and should be abandoned. I think the best solution is relocation assistance rather than rebuilding.
Capitalists are going to buy these abandoned properties for pennies on the dollar and rebuild foolishly. Then they will be back looking for more handouts when the properties inevitably get destroyed again.
Home insurance does not typically cover flooding. It’s sold separately and typically will only cover up to $250k. So you had better hope your house gets blown over by the wind instead of getting flooded up to the roofline or you will not get enough money to rebuild your house.
I’ve had a similar situation where I live. However, the government forced insurance companies to cough up. I doubt America has such regulation over the services people pay for and “tough titties” is a profitable business model.
So that’s 10.5% of total claims, but the article doesn’t do a good job explaining if this is an actual problem. they are just throwing numbers around without explaining why these claims are being denied except for suppositional statements like these:
Yes, but it’s easier to imagine a person getting $0 for their flattened house than it is someone trying to find things to blame on the hurricane for $$$.
Yeah it’s definitely not that floods are a damaging consequence of hurricanes.
I can understand that flood damage isn’t covered by those plans and still think that the consequences of for profit insurance are bullshit. People typically don’t skip out on full coverage insurance as a get rich quick scheme. It tends to be a consequence of not being able to afford their inflated prices. Safety nets like insurance do not have room for corporate profits. As a result people suffer.
I agree that insurance should not be a for-profit industry, but I am skeptical that the insurance is over-priced given the inevitability of the destruction of many of these properties. The actuarial risk is so high that many for-profit insurance companies are abandoning the market. If insurance is astronomically expensive, the area probably isn’t habitable and should be abandoned. I think the best solution is relocation assistance rather than rebuilding.
Capitalists are going to buy these abandoned properties for pennies on the dollar and rebuild foolishly. Then they will be back looking for more handouts when the properties inevitably get destroyed again.
Home insurance does not typically cover flooding. It’s sold separately and typically will only cover up to $250k. So you had better hope your house gets blown over by the wind instead of getting flooded up to the roofline or you will not get enough money to rebuild your house.
I’ve had a similar situation where I live. However, the government forced insurance companies to cough up. I doubt America has such regulation over the services people pay for and “tough titties” is a profitable business model.
Tough titties is very profitable, but to maximize profits they cut out the part where they actually help people.