Constant Opinions

Things are tough when your home is damaged or destroyed by a natural disaster. Many people have to fight their insurance company to get what they should. And just to add insult to injury, sometimes companies refuse to cover you thereafter.

This is being taken to a new level by State Farm in Mississippi. While I have no doubt that this is an expensive area for them to insure, it saddens me to see them suspending the writing of new policies in that area, and reconsidering how many to renew.

State Farm, of course, blames government regulations in that area, which they say make it too difficult for them to operate.

This kind of problem has become all too prevalent, and it doesn’t necessarily follow from a major natural disaster. I know many homeowners who are afraid to take advantage of their policies because they know that either their rates will be jacked up or they will be dropped as too high a risk. Yet home insurance is utterly vital.

Changes are necessary. Insurers need to stop dragging out the claims process, and it needs to be possible for people to use their policies as they were once intended.

Otherwise many people will face being unable to cope with damage their insurance should have covered and have to consider selling when the problems are too great.

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Filed under: Business