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Old 07-15-2008, 01:37 AM
 
Location: Tennessee
28,617 posts, read 48,725,290 times
Reputation: 20403

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When wildfires swept through Jack and Patricia Bennett’s Rancho Bernardo home last October, everything they owned was reduced to ash.

"So many treasures that are gone," Patricia said.

Allstate Accused Of Leaving Homeowners Dry, Calif. Homeowners Say They Were Misled Into Being Underinsured - And Weren't In "Good Hands" - CBS News
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Old 07-15-2008, 04:08 AM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 21,872,168 times
Reputation: 3587
What is new? And inruance company cheating people is nothing new. Although I don't have alot of sympathy for people that build houses in fire areas.
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Old 07-15-2008, 08:09 AM
 
54,973 posts, read 43,837,334 times
Reputation: 34377
Quote:
Originally Posted by KevK View Post
What is new? And inruance company cheating people is nothing new. Although I don't have alot of sympathy for people that build houses in fire areas.
Please cite where in the article the insurance company cheated these people? You mean by paying them full policy limits?

Anyone that has paid attention over the past year knows that the cost of materials (copper?) have skyrocketed and that means higher replacement costs.

It is also possible that the agent made a mistake, or that they offered guaranteed replacement cost coverage to the person but the person turned it down for cheaper coverage.

The simplest solution would have been for Allstate to have given them a 40% rate increase so that they would have been fully covered. Then I would have gotten to hear you whine about how the insurance companies were jacking up the rates on these poor people....gouging them.

The payout rates in the article above were a hillarious mangling of statistics. There is a reason allstate (and their competitors like State Farm etc.) have paid out a lot less during the *hint hint* carefully selected grouping of years.
If you think this is evidence then you have been had, they are cherry picking around the really bad hurricane and other natural disaster years. LOL
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Old 07-15-2008, 09:00 PM
 
48,509 posts, read 86,072,387 times
Reputation: 18105
God we had that here in Texas with Rita. Many people went to the cheapest policy they coud buy and that is what they got;a cheap policy. My neighbor was always bragging about now much cheaper his insurnace was and I showed hm the difference in coverage on the polices. He said he chance it and he lost. But I felt sorry for him because he had to spend most of his savings because he didn't have replacemant which I had pointed out to him.Believe it or not he still wouldn;t buy flood insurance becuase we didn't have flooding inRita'again hewill chance it.
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Old 07-15-2008, 09:07 PM
 
Location: Houston, Texas
10,425 posts, read 45,458,458 times
Reputation: 10419
Allstate has yet to pay a New Orleans claim. They just walk away and laugh.

Remember the good ol days when the govt stepped in? Remember Andrew hit Homestead Florida? Alstate told those people to go pound sand and they were about to leave Florida. Then the govt stepped in and told them to make good on all those claims or else.......

I knew it was only a matter of time before they weiseled out of those fire claims in Florida.

Why do we have insurance if they wont pay? One thing is for sure. I would never ever ever give one thin dime to Alstate who is the highest priced criminals who wont even cover a claim.
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Old 07-16-2008, 07:30 AM
 
5,090 posts, read 10,036,766 times
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Allstate is currently running #3 on FBIC Ranks Insurers Payment Of Claims Records And Bad Faith Practices with a Do Not Buy rating.

You in Good Hands, Baby. That is Allstate's Stand.

;D
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Old 07-16-2008, 07:32 AM
 
54,973 posts, read 43,837,334 times
Reputation: 34377
[quote=desertsun41;4472888]Allstate has yet to pay a New Orleans claim. They just walk away and laugh.[quote]

Well, you certainly make me want to walk away and laugh. In fact, when someone writes something so breathtakingly wrong there is pretty much no hope that you can are capable of discussing this topic.

For the record, the issues with the hurricane claims stem around flood insurance coverage etc. which I won't even try to discuss with you as it's rather complicated. Suffice to say, those claims represent about 1% of the claims and the other 99% were paid out.

So allstate didn't pay any claims in New Orleans?
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Old 07-16-2008, 01:34 PM
 
Location: Houston, Texas
10,425 posts, read 45,458,458 times
Reputation: 10419
[quote=Mathguy;4476285][quote=desertsun41;4472888]Allstate has yet to pay a New Orleans claim. They just walk away and laugh.
Quote:

Well, you certainly make me want to walk away and laugh. In fact, when someone writes something so breathtakingly wrong there is pretty much no hope that you can are capable of discussing this topic.

For the record, the issues with the hurricane claims stem around flood insurance coverage etc. which I won't even try to discuss with you as it's rather complicated. Suffice to say, those claims represent about 1% of the claims and the other 99% were paid out.

So allstate didn't pay any claims in New Orleans?
If it was wrong I would not have said it. I am a FEMA inspector on a side kick. I know much more then you have heard on faux 5 news. Trust me.

I know the tricks they play.

Insurer: Your house is flooded but you have no flood insurance. Sorry.

Homeowner: But the flood was caused by the hurricane and I have hurricane insurance.

Insurer: Nope. The flood caused the damage to your home and you have no flood insurance. Sorry again.

Homeowner: But the hurricane caused the flood which flooded my house into oblivian.

Insurer: Sorry your wrong and are not covered. Next?
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Old 07-16-2008, 02:23 PM
 
54,973 posts, read 43,837,334 times
Reputation: 34377
[quote=desertsun41;4481455][quote=Mathguy;4476285]
Quote:
Originally Posted by desertsun41 View Post
Allstate has yet to pay a New Orleans claim. They just walk away and laugh.

If it was wrong I would not have said it. I am a FEMA inspector on a side kick. I know much more then you have heard on faux 5 news. Trust me.

I know the tricks they play.

Insurer: Your house is flooded but you have no flood insurance. Sorry.

Homeowner: But the flood was caused by the hurricane and I have hurricane insurance.

Insurer: Nope. The flood caused the damage to your home and you have no flood insurance. Sorry again.

Homeowner: But the hurricane caused the flood which flooded my house into oblivian.

Insurer: Sorry your wrong and are not covered. Next?
The federal government sells flood insurance. Since the rates are set without using historic flood damage claims that generally leaves two options.

1) Charge the higher rates and cover flooding.
2) Don't cover flood claims.

Pick one, but not letting companies charge premiums for flooding but then expecting them to pay for the flooding seems an odd compromise.

If my home were located 8 feet below sea level on the gulf coast protected solely by the government (corrupt or inept or both)...I would buy flood insurance....but thats just me.

Moving back to topic though, what are your thoughts on people winding up underinsured as the orginal poster cited?
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Old 07-16-2008, 03:00 PM
 
Location: Houston, Texas
10,425 posts, read 45,458,458 times
Reputation: 10419
[quote=Mathguy;4482173][quote=desertsun41;4481455]
Quote:
Originally Posted by Mathguy View Post

The federal government sells flood insurance. Since the rates are set without using historic flood damage claims that generally leaves two options.

1) Charge the higher rates and cover flooding.
2) Don't cover flood claims.

Pick one, but not letting companies charge premiums for flooding but then expecting them to pay for the flooding seems an odd compromise.

If my home were located 8 feet below sea level on the gulf coast protected solely by the government (corrupt or inept or both)...I would buy flood insurance....but thats just me.

Moving back to topic though, what are your thoughts on people winding up underinsured as the orginal poster cited?
It sounds like we are on the same side when talking about the corrupt govt.

But I dont see much of any govt covering/helping anyone in NO either. Nearly all those people who lost their homes are still living in those 26' FEMA trailers 2 years later. Living with no hopes or promises by anyone. Like they are forgotten about.

What I do see is risk takers, entrepreneurs with some cash going in and making land owners (where homes once stood) offers. These people are offering as little as a few thousand dollars to these FEMA refugees to sell their land to them. To the refugee it is a great deal. They see zero hope of ever seeing one thin dime from FEMA, the crooked govt, or any insurance company. At least the few thousand dollars gives them some hope to move on. But.....some are just taking the money and blowing it. Hey what the hell, they have a free trailer to live in.

I dont think too many of those people had the government offered flood insurance you speak of. I say offered because many of the insurance companies do not write any more flood policies. So the govt developed one that would not refuse anyone. So many of those people were so poor that buying insurance was the very very last thing on their budget list.

I feel for those people. I turned down disaster job by FEMA to go to NO. I was told there was no place to stay. Even today the city is just now starting to seek out electricians and plumbers to take care of infrastructure first. Houses come later. FEMA offered to put up relocating workers in trailers but they were bunking 2 strangers to a trailer. What if you dont get along with the other guy? But we are welcome to bring our own RVs or TTs and get free hookups. It aint for me.
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