Insurers in (Claims) Denial
Homeowner premiums jumped by a third between 2001 and 2004. So you'd think you could get more love, right? Wrong.

(MONEY Magazine) - Homeowner premiums jumped by a third between 2001 and 2004, according to J.D. Power & Associates. So you'd think you could get more love, right? Wrong. You're paying not for service but to make up for losses--low interest rates, natural disasters and choppy markets have depleted insurers' coffers. Nearly 200,000 people cried foul in 2005, says the National Association of Insurance Commissioners. Top complaints were delays, denials and lame settlement offers. The steps below will help you with auto insurers too.

How to Fight Back

KO PUNCH 1 TALK LIKE A LAWYER Understanding two simple legal concepts can send a message to your insurer that you've done your homework and you know how the game is played.

• Estoppel Ask your agent for the specific provision in the policy that's the basis for the inadequate offer or denial. This puts the insurer in a position where it can't spring a new reason for the denial on you sometime in the future, because everything's in writing. It's a way to make sure you always know the exact wording you're fighting against.

• Contracts of adhesion Insurance policies are written by one party (the insurer), with the other (you) having no say. If the aggrieved party (you) makes a case that the language is ambiguous and can be interpreted in different ways, you've got a shot. "The court typically instructs a jury that the person who wrote the contract loses if the language is ambiguous," says Bob Hunter of the Consumer Federation of America, who is a former Texas insurance commissioner. Reread your policy. If you read it in a way that can work in your favor, have a lawyer send a letter saying so.

2 PRESENT EVIDENCE LIKE A LAWYER If your insurer claims the damage is from a previous storm or accident, or from normal wear and tear, produce:

• Mechanics' maintenance reports • Receipts for home repair • Photos taken before the damage

3 CALL THE LAW If you and the insurance agency are at an impasse, put a call in to your state insurance regulator (consult the NAIC at naic.org), who can act as your advocate. Unless your insurer has broken the law, the regulators have no enforcement capabilities, but nobody likes regulators sniffing around, and many states make complaint records public. The threat of looking bad on a state regulator's website is often enough to elicit a response.

17% of people wouldn't recommend their insurer to

friends.

SOURCES: Accenture and SAP. Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.