Question:

Do home/auto insurance companies play favorites with their customers when they pay out claims? ?

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This is probably going to come off as a little dumb, but I can't think of another way to phrase it. I'm 25 y/o, a new homeowner, and I already have filed a homeowners claim for water damage. I have had the easiest time in the world with my insurance company paying for repairs, and it actually really suprised me how easy it was. After I filed the claim, I looked around online, and I saw where people were having nightmare problems with their insurance company for the same type of damage I'm claiming.

My parents have been with this insurance company for 25+ years. The policy is mine alone, but I have the same agent that they have. I've also been on my parents' car insurance since I turned 16. My parents and I have all been pretty-much accident/claim free, and they always pay their bills on time.

Here's my question. When this insurance company was analyzing my claim, did they take into account my parents' longterm business, or are they considering me independent from my parents? I'm asking, because I've heard of companies that drop their clients after one water-damage claim, and I'm a little worried they'll drop me

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4 ANSWERS


  1. Claim reps would know nothing about you, your family or how long you have been with a company.  They just settle your claim.   You have a good company.   Which one is it?  Since you have a positive experience you should share that with others.

    Most likely the company will not drop you for just one claim.  But do not put in a 2nd claim unless it is something big or serious.  They might not drop you after a 2nd claim either, but they can.  


  2. no they don't play favorites.  each claim is different, ALWAYS!  there is always different circumstances to each claim.  everyone does not have the same policy.  everyone does not use a reputable company.  etc.....  sounds like you have a good company, stick with them.  i doubt you will get dropped because of 1 claim.  start getting 2-3 in less than 3 yrs and then start to worry.

  3. No.

    Insurance companies do not play favorites. We would get sued all over the place. Most likely the adjuster had no idea your parents are insured with the company. Your parents being insured with the company have nothing to do with how your claim was handled.

    Each claim is handled and evaluated on its own merits. When you see people complaining about the insurance company, there is more to the story then what they are telling you. All you see is their complaint -- you don't get the back story. So take that stuff with a grain of salt.

    If you are concerned that you may get dropped because of a claim - talk to your agent. Each company has it's own under writing guidelines. Your agent will be the best person to ask.

    P.S. - insurance companies do not have a monthly budget they have to meet.

  4. No. I think they have a monthly budget or something. So if your claim comes in and the budget has not been used you get a good result. If the current claims are up near their budget they try everything to get out of or reduce the claim. My mother had a water leek which spoilt the flooring and carpet. They suggested(!) she needed new carpet in the room where the leak was and in the hallway and another room further down the house.

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