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Raleigh Flood Insurance Claims

Insurance companies are the only businesses on the planet that want to create a conflict of interest between themselves and their customers. Instead of these conflicts being seen as a serious liability, they openly encourage them and uphold them as a successful business model.

Policyholders pay their insurance premiums, and the insurance company takes that money and invests it into something they believe to be profitable. A large amount of policyholders means that major insurance companies have a lot of money to invest and can stand to make a nice profit if they leave that money in investments.

Thus, it is in the best interest of the insurance company to protect their bottom line by actively seeking to delay payouts whenever possible.

Of course, there is nothing wrong with an insurance company investing unclaimed insurance premium dollars, but there is something wrong when that same company decides to jerk people around and avoid paying them in a timely manner, simply so they can squeeze more money out of their investments.

The Insurance Model

This current business model openly encourages a company to procrastinate and defy the original idea of what an insurance company was supposed to embody. The initial purpose of an insurance company was to give its policyholders the services they paid for while still maintaining the profit portion of the business. They were originally able to balance the idea of helping people during stressful situations with the realities of running a financial enterprise.

The insurance companies also pledged to pay claimants in a timely manner and make sure that they are getting the money when it is needed the most. However, a lot of times these companies practice putting profits before people, by acting in “bad faith” and avoiding or delaying paying a person damages in a sufficient amount of time. This can cause a lot of harm to claimants who desperately need the money to pay their outstanding bills and keep their world afloat.

People then have to make sacrifices and do what is necessary in order to survive. Many of them take out private loans or secure funding with incredibly high-interest rates, while others have to sit back, declare bankruptcy, and watch as their house is put under foreclosure; and, when the insurance company finally comes around and pays them their money, the long-term damage is already done and people will have to deal with the consequences for years to come.

Who This Hurts

The best example of this kind of behavior is seen in areas where massive flooding has occurred. A lot of times, the insurance companies do not even offer flood insurance because it is not profitable and does not help their bottom line. The United States government winds up helping many of these people and gives an average of 1.9 billion dollars a year to families hard hit by flooding.

Even when the insurance companies do offer flood insurance, they try and pay out as little as possible by cutting corners and providing misleading estimates of the damage. Many of these places will seek to determine the exact wind-to-water damage ratio and will only pay the total amount of water damages that they determined to be accurate.

This will often leave people with enough money to make a difference, but not enough money to return them to their previous standard of living.

Hurricanes are also an area where insurance companies are lacking in effectiveness. When massive disasters destroy areas like Florida and South Georgia, you would think that an insurance company would view this as an opportunity to shine and uphold their end of the bargain.

Hurricane Matthews is a recent example of a natural disaster where many people are being left out in the cold because of the profit-first enterprise that has become the insurance business. While some people do receive appropriate treatment from their policy providers, many do not and are forced to handle the strenuous circumstances all on their own.

Why to Contact An Attorney

This is why retaining the services of an attorney is so important during times like these. An accomplished attorney will know how to stand firm and effectively negotiate with the major insurance companies and will be able to ensure that any conflicts of interest have no bearing on their client’s financial situation.

While many view professional attorneys as overly ambitious people, in a situation like this, a person will want someone by their side who will not quit until they get justice and receive the compensation they rightfully deserve.