In February, winter storm Uri swept through Texas and left a trail of destruction costing an estimated $18B in repairs. Almost six months later, many policyholders are still waiting on repairs from their insurance company. Some are still living in hotels, unable to move back home due to the extent of the damage.
The situation Texas policyholders face is very similar to those in Iowa recovering from the Derecho in 2020. Almost a year later, thousands are still waiting on insurance settlements. Even more policyholders are dealing with lowball settlement offers and wrongfully denied claims.
With massive and widespread storms becoming the norm for American policyholders, the question isn’t if it will happen, but when. This isn’t comforting news, especially to policyholders that have felt what it’s like to be at the whim of their insurance company. The bigger question then becomes what can policyholders do when faced with lengthy claim delays?
Hiring an expert like a Public Adjuster or attorney is usually the best route. These experts can advocate for policyholders and help streamline the claim process. Alternative ways to claim resolution, like the appraisal process, are also options for policyholders. The only problem is that the policyholder must pay for these services out of pocket and expenses. Known as consequential damages, these expenses can add up quickly and don’t make sense for some claims.
An alternative to policyholders may be filing a complaint with the state department of insurance. Investigating claims and documenting errors made by insurance companies is one role these organizations have. In addition, consumer complaints factor into market conduct reports that state agencies complete to determine if insurance carriers can continue to offer insurance services in that state. While state insurance departments cannot sue a carrier on behalf of a policyholder, they can put pressure on insurance carriers to follow the rules.
46% of the complaints to the Texas Department of Insurance resulted in increased payouts and faster resolution.
Unfortunately, many policyholders may not know this option exists. In fact, insurance claim complaints skyrocketed 80% after a local news story ran about who to contact. However, when interviewed, many said they didn’t know this option existed.
Educating policyholders on how to deal with claim delays should be a priority for insurance oversight organizations. Furthermore, helping policyholders understand their rights can better equip them to document bad faith actions. In the end, a record of consumer complaints can be a powerful tool for legislators working towards enacting consumer protection laws against big carriers.
Have you been impacted by winter storm Uri or dealing with issues related to a property damage insurance claim? Then, join the conversion by following us on Facebook and reach out to tell us your story.
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