We’ve all heard the stories about insurance companies denying claims or offering low settlements. It can be frustrating to feel like you’re not getting the coverage you deserve. But before you jump to the conclusion that your insurance company is out to screw you, it’s important to understand how insurance companies work and what your rights are as a policyholder.
Insurance Companies: Businesses with Obligations
Insurance companies are businesses, and like any business, their primary goal is to make a profit. However, they also have a legal obligation to uphold their contracts with their policyholders. This means that they must pay out claims that are covered under the terms of your policy.
The Role of Insurance Adjusters
Insurance companies often use adjusters to investigate and settle claims. Adjusters are responsible for verifying the facts of a loss and determining what the insurance company is obligated to pay. Adjusters are trained to be fair and impartial, but they also have a responsibility to protect the interests of the insurance company.
Why Claims May Not Be Settled to Your Satisfaction
There are a number of reasons why a claim may not be settled to your satisfaction. Sometimes, the policyholder simply does not understand the terms of their policy and what is covered. In other cases, the policyholder may be trying to make a fraudulent claim. And sometimes, there may be legitimate disagreements about the value of a loss or the extent of the damage.
Working with an Independent Insurance Agent
Independent insurance agents can play a valuable role in helping you understand your insurance coverage and getting the best possible settlement for a claim. Independent agents work with multiple insurance companies, so they can shop around to find the best rates and coverage for your needs. They can also help you file a claim and negotiate with the insurance company on your behalf.
Maintaining a Positive Relationship with Your Insurance Company
It’s important to maintain a positive relationship with your insurance company, both before and after you file a claim. This will make it more likely that you will get a fair settlement if you ever do need to file a claim.
Here are some tips for working with your insurance company:
Insurance companies are not out to screw you. They are businesses with obligations to their shareholders, their customers, and the agents who represent them. However, there are times when disagreements arise between policyholders and insurance companies. If you find yourself in this situation, it’s important to understand your rights and to work with an independent insurance agent who can help you navigate the claims process.