An insurance company rant.

[gdelongchamp]

So, many years ago we had a small kitchen fire. About $15,000 in damages. Luckily we had smoke detectors throughout the house which caught the attention of a passer-by who called the fire department. The working smoke detector saved our entire house. Now we have 9 smoke detectos and three carbon monoxide detectors throughout the house. Fire extinguishers on the main floor and basement.

 

Three years ago a watermain on the street in front of our house busted and flooded our yard and basement as well as four other houses on the street. Completely not our fault. $30,000 in damages. So we sealed the basement completely to prevent a re-occurence. Our cost about $500.00

 

Last summer a flash thundershower hit Sudbury and flooded large portions of the downtown area. Our house, one of at leasst 500 got flooded due to a sewer back-up. $30,000 in damages. Everything came in through the basement bathroom toilet and shower drain and fast. Again, completely not our fault. We installed a backflow preventer in the plumbing system to prevent a re-occurence. Out of pocket cost, $1,000.00.

 

To-day I get an unsigned letter from our Insurrer "CAA". They are declining our insurrance policy and we have four weeks to get another insurrer.

 

So I call around to get quotes and am declined by the first two companies because of two claims in the last three years with my present insurrer.

 

I guess these are the hazards of living in downtown Sudbury. Now I have to wait around all weekend to continue my hunt for another insurrer.

 

By the way, my boat, motor and trailer pkg are on my policy. Any one had this type of experience with an Insurance company?

 

 

Further to the above,

 

Three years ago my doctor advised me to take long term disability because I have heart disease and COPD otherwise known as smoker's lungs. (I don't smoke) SO he supports me completely in my application and so does my heart specailist and lung doctor. On a Friday morning in March I receive a call from the Heart Transplant team in Toronto to come down on Monday for some tests. A few minutes later I receive a letter in the mail from my Insurrer, "I am sorry but under the circumstances we can not give you long term disability insurance. Coverage will stop immediately as I don't qualify.!!!! My application is successful with CPP but not my private insurrer? And I am sitting there thinking, as my whole world is unravelling Gee I have to go back to work. I wonder if i'll be able to get time off to get a heart transplant? Several phone calls later and the private insurrer called back on Monday to say it was a clerical error.

 

I am hearing that this is an automatic response by all private insurrers. Say no and hope he goes away?

 

Regarding house insurance, I have called back to ascertain that this is not a clerical error. Now I will call back and ask to speak to a "senior supervisor" to dispute this (insurred for many years, dues and premiums always fully paid on time etc,. etc. and if their position has not changed a call to the insurrance company's own ombudsman and finally a call to my MPP and Provincial Ombudsman.

[bigugli]

So, many years ago we had a small kitchen fire. About $15,000 in damages. Luckily we had smoke detectors throughout the house which caught the attention of a passer-by who called the fire department. The working smoke detector saved our entire house. Now we have 9 smoke detectos and three carbon monoxide detectors throughout the house. Fire extinguishers on the main floor and basement.

 

Three years ago a watermain on the street in front of our house busted and flooded our yard and basement as well as four other houses on the street. Completely not our fault. $30,000 in damages. So we sealed the basement completely to prevent a re-occurence. Our cost about $500.00

 

Last summer a flash thundershower hit Sudbury and flooded large portions of the downtown area. Our house, one of at leasst 500 got flooded due to a sewer back-up. $30,000 in damages. Everything came in through the basement bathroom toilet and shower drain and fast. Again, completely not our fault. We installed a backflow preventer in the plumbing system to prevent a re-occurence. Out of pocket cost, $1,000.00.

 

To-day I get an unsigned letter from our Insurrer "CAA". They are declining our insurrance policy and we have four weeks to get another insurrer.

 

So I call around to get quotes and am declined by the first two companies because of two claims in the last three years with my present insurrer.

 

I guess these are the hazards of living in downtown Sudbury. Now I have to wait around all weekend to continue my hunt for another insurrer.

 

By the way, my boat, motor and trailer pkg are on my policy. Any one had this type of experience with an Insurance company?

 

 

Further to the above,

 

Three years ago my doctor advised me to take long term disability because I have heart disease and COPD otherwise known as smoker's lungs. (I don't smoke) SO he supports me completely in my application and so does my heart specailist and lung doctor. On a Friday morning in March I receive a call from the Heart Transplant team in Toronto to come down on Monday for some tests. A few minutes later I receive a letter in the mail from my Insurrer, "I am sorry but under the circumstances we can not give you long term disability insurance. Coverage will stop immediately as I don't qualify.!!!! My application is successful with CPP but not my private insurrer? And I am sitting there thinking, as my whole world is unravelling Gee I have to go back to work. I wonder if i'll be able to get time off to get a heart transplant? Several phone calls later and the private insurrer called back on Monday to say it was a clerical error.

 

I am hearing that this is an automatic response by all private insurrers. Say no and hope he goes away?

 

Regarding house insurance, I have called back to ascertain that this is not a clerical error. Now I will call back and ask to speak to a "senior supervisor" to dispute this (insurred for many years, dues and premiums always fully paid on time etc,. etc. and if their position has not changed a call to the insurrance company's own ombudsman and finally a call to my MPP and Provincial Ombudsman.

The insurance thing is such a pain. They, naturally are in the business of generating a profit. Regretably, the common practice is to drop clients and properties with repeat claims. They will 'forgive' the first, and maybe the second, claim, but by the third you are done come renewal time. As for LTI, I'm surprised you are getting it with COPD unless you had the coverage before you were diagnosed. Most insurers decline medical conditions that predate your initial app for insurance, whether that be life, LTI, even mortgage insurance.

[gdelongchamp]

The insurance thing is such a pain. They, naturally are in the business of generating a profit. Regretably, the common practice is to drop clients and properties with repeat claims. They will 'forgive' the first, and maybe the second, claim, but by the third you are done come renewal time. As for LTI, I'm surprised you are getting it with COPD unless you had the coverage before you were diagnosed. Most insurers decline medical conditions that predate your initial app for insurance, whether that be life, LTI, even mortgage insurance.

 

Thanks for the reply biguli. Yes, I did have coverage before I was diagnosed with heart disease and copd. And there is no way I could get mortg ins or life ins now.

[bushart]

Maybe talk to a lawyer---I believe insurance companies do not like the bad press of being sued.

[desship]

I had similar problem, was told I did not qualify at 11am threatened them with lawyer they called back 2 hrs later and changed their decision.There is an insurance ombudsmen office in Ontario whom you can contact and they may be able to help you.

[Gerritt]

I am going through something similar, I had an accident last october, I swerved to avoid an accident right in front of me and caused one in the process. (The guy that caused to original accident took off) Anyways I was not found at fault by police. However the insurance company told me they do not follow the HTSA, and deemed me to be at fault.

 

I later received a piece of "registered" mail from the insurance company informing me that they were no longer going to cover me, and to find a new insurer..

 

I am having difficulty to say the least...

 

G

[jace]

I later received a piece of "registered" mail from the insurance company informing me that they were no longer going to cover me, and to find a new insurer..

 

I am having difficulty to say the least...

 

G

 

 

without a doubt, the relationship we have with the insurance companies is the definition of a rainy day friend.

[jediangler]

Organized crime has nothing on Insurance companies when it comes to extortion.

[aplumma]

While it seems unfair on one hand if the insurance company does not have more money coming in than going out it will close then no one has insurance. I have 2 term life policies, health,2 motorcycles,4 autos,a boat and 2 million in business insurance all so I can sleep at night. Their seems not to be an answer that takes the sting out of your troubles but I hope you can get the insurance you need for your peace of mind.

 

 

Art

[Billy Bob]

Back in 1983 I had just finished building a brand new 2 bedroom cottage near Chautauqua Lake....only needed the carpet to be laid and my 4 years of every weekend and vacation and holidays, etc...was going to pay off.

 

Well guess what happened while my wife and I were spending the weekend with her parents at the cottage.....a tornado hit us doing LOTS of damage to the cottage and both our cars that were parked in front of the cottage....the cottage was lifted up and put back down kitty corner to the basement foundations...but anyways....my insurance carrier "Travelers" paid for everything that was damage on my cottage and car...my father in-law had some real small insurance carrier out of Rochester, NY...they screw around with him for his car damages for over 3 months before finally paying for the repairs...a short time later they canceled him...it was his ONLY claim he had with them...

 

My cousin who is a big shot with Travelers said small companies will scrutinize every claim while large companies don't have time for that unless a red flag is raised on the claim.

 

My younger son Billy is now a underwriter with a commercial insurance carrier...last August they refused any new clients within 20 miles of the Atlantic Ocean because of hurricanes.

 

Bob

Edited April 18, 2010 by Billy Bob

[pikehunter]

First off, best of luck and good health with your heart situation and I'm happy to see the insurance provider came around for you.

 

What your house insurer has done to you is something that many of my neighbours and I fear since the area has had several sewer back ups. One had his max payment dropped to $10,000 and some lost sewer back up coverage. In a different situation a friend of my wife forgot to pay her house insurance premium and it was canceled by the carrier. She had a really tough time to find a company that would take her on after that. Best of luck getting coverage.

[Abraxus]

I work for an insurance company and all isnt as it appears. People always want to crap on the insurance companies for this and that. Even I, have been guilty of this in the past.

 

My company insures receivables. We even purchase purchase receivables on a non recourse basis.

 

Last year was for our industry, the equivalent of a Hati or Katrina. We generate roughly $30,000,000.00 in sales per annum. In the first HALF of 2009, we had already paid out over $186,000,000.00 in claims. If a company/client/policy holder had experienced three consequtive years in losses and were in excess of thier deductible each time, ya...come renewal, we would often make them an offer they could and would refuse.

 

As previously mentioned. Insurnace companies have to make a profit too! If they themselves fall below a certian threshold, the governing agecies within each country or province will pull their license. The government cannot have an insurance company selling policies when they cannot afford to pay claims its as simple as that. Not to mention, since almost all Insurance companies are publicly traded, the share holders must be answered to and taken care of as well. Everyone thinks that Insurance companies have endless deep pockets. They don't! AIG was one the worlds largest Insurance companies and yet fell victim to the recent Great Recession. Most policies in place, have premiums so low in relation to what an actual claim will cost if one should occur, that it would typically take over 50 years of that one policy/person or busines renewing thier Policy year after year before it would even come close to covering the cost of just one claim. All the while, the insurance company is not gauranteed this will happen. Many people see an increase in their policy premium and are quick to call a broker looking for a competitive quote. Insurance companies rarely if ever have true loyal customers, and so thus seeing the possibilty of one person ever contributing enough premium in their life time to one insurance carrier after stinging them for a sizable claim, is vertually un heard of! If you have multiple claims, you are a high risk. I dont necessarily aggree with them not offering you a renewal option, but would not have any issue if they did offer you a Premium that was rediculously expensive. At least then you would have the option of bucking up and continue being insured or option two, self insure. If you renewed and continue for a period of five years with out claims, then your premium would reflect this in premium reductions each year. That is the fair and correct approach. Anyways, I feel for you! This kinda thing sucks and is never nice to hear when someone has to experience it.

 

The Health Insurance issue on the other hand is absolutely unacceptable. That should pursued legally!

 

Ab

Edited April 19, 2010 by Abraxus

[Harrison]

 

Three years ago my doctor advised me to take long term disability because I have heart disease and COPD otherwise known as smoker's lungs. (I don't smoke) SO he supports me completely in my application and so does my heart specailist and lung doctor. On a Friday morning in March I receive a call from the Heart Transplant team in Toronto to come down on Monday for some tests. A few minutes later I receive a letter in the mail from my Insurrer, "I am sorry but under the circumstances we can not give you long term disability insurance. Coverage will stop immediately as I don't qualify.!!!! My application is successful with CPP but not my private insurrer? And I am sitting there thinking, as my whole world is unravelling Gee I have to go back to work. I wonder if i'll be able to get time off to get a heart transplant? Several phone calls later and the private insurrer called back on Monday to say it was a clerical error.

 

 

So as far as LTD is concerned everythings sorted out? If not, I might be able to give some guidance, PM me if interested. I work with WSIB, LTD and other disability programs everyday.

 

Phil

Edited April 19, 2010 by Harrison

[gdelongchamp]

Thank you for your replies and your concerns, all of you. Greatly appreciated.

 

Yes LTD has been straightened out for some time. As for the property insurance, I will continue to try and get some quotes. With three kids at home the roof over our heads is the priority and has always been. Now to get this behind me and start thinking about fishing.

[blarg]

I work for an insurance company and all isnt as it appears. People always want to crap on the insurance companies for this and that. Even I, have been guilty of this in the past.

 

My company insures receivables. We even purchase purchase receivables on a non recourse basis.

 

Last year was for our industry, the equivalent of a Hati or Katrina. We generate roughly $30,000,000.00 in sales per annum. In the first HALF of 2009, we had already paid out over $186,000,000.00 in claims. If a company/client/policy holder had experienced three consequtive years in losses and were in excess of thier deductible each time, ya...come renewal, we would often make them an offer they could and would refuse.

 

As previously mentioned. Insurnace companies have to make a profit too! If they themselves fall below a certian threshold, the governing agecies within each country or province will pull their license. The government cannot have an insurance company selling policies when they cannot afford to pay claims its as simple as that. Not to mention, since almost all Insurance companies are publicly traded, the share holders must be answered to and taken care of as well. Everyone thinks that Insurance companies have endless deep pockets. They don't! AIG was one the worlds largest Insurance companies and yet fell victim to the recent Great Recession. Most policies in place, have premiums so low in relation to what an actual claim will cost if one should occur, that it would typically take over 50 years of that one policy/person or busines renewing thier Policy year after year before it would even come close to covering the cost of just one claim. All the while, the insurance company is not gauranteed this will happen. Many people see an increase in their policy premium and are quick to call a broker looking for a competitive quote. Insurance companies rarely if ever have true loyal customers, and so thus seeing the possibilty of one person ever contributing enough premium in their life time to one insurance carrier after stinging them for a sizable claim, is vertually un heard of! If you have multiple claims, you are a high risk. I dont necessarily aggree with them not offering you a renewal option, but would not have any issue if they did offer you a Premium that was rediculously expensive. At least then you would have the option of bucking up and continue being insured or option two, self insure. If you renewed and continue for a period of five years with out claims, then your premium would reflect this in premium reductions each year. That is the fair and correct approach. Anyways, I feel for you! This kinda thing sucks and is never nice to hear when someone has to experience it.

 

The Health Insurance issue on the other hand is absolutely unacceptable. That should pursued legally!

 

Ab

 

 

Cry us a river already, even in Canada the insurance companies collectively make billions every year. The whole industry is a government legislated scam, we are forced to have insurance, which of course is a sensible thing, until of course you need to make a claim or two. At that point you are no longer a money making customer, you are a problem, its garbage. Basically our relationship with the insurance companies is all good as long as we give them money for doing absolutely nothing, makes perfect sense to some, but I question their intelligence. Since we are forced to have insurance the insurance companies should be forced to act in good faith, something which they rarely do.

[Chris]

If you renewed and continue for a period of five years with out claims, then your premium would reflect this in premium reductions each year.

 

Hahahahoohhoohhoohaahahaa! That's a good one!

[DanD]

Right or wrong; I have to agree with blarg that dealing with insurance companies are a one-way, (their way) dealings.

I was with a company for several years, here at my garage; paying some very (what I thought) high premiums and never put in a claim to them for anything.

Not until I was broken into and the thieves got away with better then 40 Grand in tools & equipment.

During the claim process they were great; told me to have the Snap-on & Mac Tools guys bill them direct, for the missing equipment; no questions asked, after they received the police report. I was back in business within the next day or two and the tool guys were paid by the end of that month.

But now when it came to renew my policy; they said no thank you; we’re not willing to offer you one.

They’re explanation was that the location of my business, was in a high crime area of the city and they no longer were insuring businesses in this area?

They didn’t want to hear anything; not the improvements I made to the security of the building, the alarm system I installed, nothing. They said move and we may offer you a new policy; but likely at a much higher premium. What 12 Grand a year wasn’t enough, to turn a profit; do the math.

I ended up going to a broker to find a carrier for me and luckily they found one fairly quickly or I would have been closed down. I know that sounds extreme but for example you must have ( I believe) a minimum of a million five liability or Drive Clean will revoke your license and drop you out of the program; that was a 60 grand investment for me, to become a Drive Clean facility. Then there’s environmental; that is also delegated by the government; that you must have.

So yes it’s organized rip-off, you can’t call it crime; the government says it’s legal.

 

Sorry done with my rant.

 

Dan.

[jimmer]

Just think about all those young people (anyone else for that matter)out there driving around without insurance, because they got a couple of speeding tickets or some careless driving charges and can no longer afford or get insurance, but still need to drive so they can work? I hope I never get hit by one of them!

Insurance companies run the country and dictate what we can and can't do.

A necessary evil that drives us all crazy!

[Big Cliff]

Sorry but I guess I am the exception here. I have been with State Farm for over 30 years. My van got broken into, no problem. I lost a very expensive bracelet while fishing, no problem. I clipped another car in a blizzard, had $17,000.00 in damages done to my house in a rain storm, $6000.00 damages done to my car when a guy ran a red light, $4000.00 damages done to my garage during a wind storm when a tree came down on it, and $3500.00 in damages when ice built up on my roof and water got in under the shingles. Not once have they ever given me a hard time. Not once have my premiums gone up significantly, not once have they mentioned not renewing my policy. I have my house, coverage on my boat house, two cars, boat, ATV, a rider on my liability, increasing it to $2,000,000.00 and extended coverage on jewlery and loss of use on my cars; everything is insured at full replacement cost. I pay about $250.00 a month.