FC&S Online constantly hears about how insurance companies are on a mission to underpay claims whenever and however possible. We hear this frequently from agents and adjusters with whom we interact with in our daily analysis of coverage language. But what about situations in which claims are overpaid?
I recently began questioning how much money insurers hand out needlessly because their adjusters don't have enough training or are so overloaded with work that they can't possibly handle all of the files they are assigned due in part to a claim a family member recently made.
A few months back, my sister's dishwasher piping burst, which flooded her finished basement and the kitchen sub floor. She filed a claim and received immediate action because the loss was deemed an "emergency" by her insurance company's claims triage unit. The field adjuster came out, estimated the damage, and made arrangement for repairs under the company's preferred contractor program.
The glitch arose when she decided to replace the floor in the basement bath/laundry room with ceramic tile instead of the linoleum that existed before. Read entire article: http://www.propertycasualty360.com/2011/01/17/overpaying-insurance-claims
Another point of view that generally isn't publicized.