Insurance companies are a for profit business. Just like most businesses, the insurance companies have shareholders to make happy, not their customers. How do companies keep their shareholders happy? Being profitable and paying higher dividends. A company is profitable when it brings in more revenue than expenses. For insurance companies, they need to receive more premiums than claims they’re paying out.
Insurance companies continue to rake in profits on policies that take advantage of homeowners who are uninformed of their policy discounts. Property owners are sold on the fact that they can get a big discount for waiving certain items in the policy or allowing an increased deductible. In actuality, it costs them thousands of dollars of additional out of pocket expenses when disaster strikes. A few ways the carrier has done this is thru the hard to understand terms and many exclusions in policies. Often times property owners are unaware that they may have a 1% deductible on the policy, but a 3% to 5% for wind and hail. A simple $10,000-dollar roof on a $200,000 house can mean a $6,000 to $10,000 deductible. Is that worth the premium savings?
Contact NCN today to review your policy. Don’t wait until disaster strikes. We are here to advocate for the property owner.
