Home insurance provides financial protection for your home and belongings. It helps to pay for repairs to your home or belongings when unintended damage occurs. Trust is the basis upon which the relationship between a customer and the insurers is founded.
There are cases when the promises made by the insurance company are broken, resulting in the customer being left in a dilemma. This breach in trust is an occurrence that often happens despite the claims of the companies to its trustworthiness.
The distrust that exists in the insurance industry seriously affects customers, but since they, the customers, cannot afford to be without it, they continue to buy into the system. Essentially, the industry, in many cases, does not live up to its promise of support in difficult times. The interest of the stakeholders and customers are also misaligned, further worsening the problem.
The home insurance companies claim that support would always be given to a landlord when there are adverse incidents that affect the insured property. But this promise is often broken, or even when keeping it, the situation is made frustrating to the affected individual.
There are various reasons why deserving service is not given to the customers, some of which are highlighted below.
Insurance is designed to suit the balance sheet and investors.
Profit is everything in the insurance business, and little attention is given to the needs of the customer. The idea is to sell as many policies as can be sold and pay out a few. Selling brings in money, and paying implies losing funds, so to gain, they will prefer to pay out as little as possible.
The industry’s primary concern is a fraud.
All claimants are treated as fraudsters until proven innocent. The claim process is so complicated and complex that it erodes the trust placed in the industry. Customers are faced with terrible experiences when they try to claim on a damaged property.
Insurance is designed to be product-centric
The focus of the industry comes first with the needs of the customer taken second in order of priority. This is done to make more profit for the shareholders and investors ignoring the customers.
Since more money is being made into the system, there is no concern by the powers that be to correct the system. As long as the money rolls in, eyes continue to be closed. This attitude causes much mistrust by the customers to the insurance industries.
Until the foundation of trust upon which the insurance industry is reconstructed, the landlords and owners of the estate will never fully see it as trustworthy. The challenge of broken promises through the courts will cost much more than the amount incurred by the accidents. The thought of this discourages many from this course of action, further encouraging the immoral behavior of the home insurance companies.
It is best for interested landlords and estate owners to make sure to have extensive knowledge about home insurance as it allows them some leverage when it is needed.