If you "come out ahead" against an insurance company it's usually a hollow victory. At least in my case it was.
My wife started a new job and signed up for an aflak indemnity policy. Paid maybe $30 into that policy then was able to cash in on it for $10k. The downside? It was because she had cancer.
House always wins (big time) with insurance. Gotta pay for all of those commercials somehow (so that the balance sheet meets the criteria for not-for-profit).
On or in….
It didn't start out that way. And there still is "value" in it for those that can afford the losses. But in its current state, it's absolutely a negative value proposition.Insurance is a continuing scam perpetuated on the gullible and/or the defenseless
Got caught in a flood in ‘99 3 months after getting drivers license. Car w 300k miles totaled after being underwater for an hr+. Think I got 3.5k for it which felt like a huge win at the time.With all the destruction from the storms lately we hear of all the disappointment when working with insurance companies but have you ever felt like you came out on top? My best was reshingling my home and another unattached garage after a hail claim. A buddy and I shingled as a side gig for years so I had all the tools (nail guns, compressor, toe holds ladders etc.) so I decided to tackle it myself as it was fall and he was busy harvesting. At age 65 it took some time to tear off 40 square from my cape cod with 10/12 pitch roof and tote 120 bundles up the ladder. I at times questioned my own sanity and my wife wanted me to hire someone to finish when I was only halfway done., but my pride wouldn't allow that to happen. End result I got a new roof done to my exacting standards and pocketed $17,000 dollars--the difference between the insurance check and the cost of materials. We bought some toys!
It's required if you want to finance a house or car, the law requires liability if you want to drive on the street, and good luck being able to afford a major medical procedure out of pocket if you need it, so I guess that puts most people in the defenseless category.Insurance is a continuing scam perpetuated on the gullible and/or the defenseless
Glad you can afford to lose $300k overnight if your house burns down, and you can rebuild from petty cash and its no impact to your finances. I thought i was doing well, but must be a pauper.Insurance is a continuing scam perpetuated on the gullible and/or the defenseless
Maybe I don't understand what you mean by "negative value proposition". Doesn't insurance have to be that on average you pay in more than you receive? If not where does the money to reimburse people with large losses come from?It didn't start out that way. And there still is "value" in it for those that can afford the losses. But in its current state, it's absolutely a negative value proposition.
My how times have changed. Young folks seem to shun minivans these days.About 25 years ago my dad had an old grain bin damaged by hail. For some odd reason, the bin was made out of aluminum instead of galvanized steel. At that time, the price of aluminum was very high and dad had full replacement cost coverage on the bins. The insurance company paid him for the value of the aluminum, not for the cost of replacing the bin with a standard steel one. Since a dented grain bin still functions fine, he didn't replace it but got around $20K from insurance. I was a young married guy with a second child on the way so he gave me the $20k to buy a minivan. There wasn't any fraud involved -- this was just a lucky score.
Insurance is a continuing scam perpetuated on the gullible and/or the defenseless
We had a storm go through but I didn’t think it was that bad. My insurance agent told me to turn it in anyway. Adjuster showed up and said the roof of my house had no damage. He asked if he could look at the shop roof. It’s a 72x80 steel building that I didn’t think would have any damage but he looked anyway. After looking at it he went to his car for about 15 minutes. I figured he would just leave after not finding anything. He steps out of his car and walks over and hands me a check for $30k. Says the shop needs a new roof. I was floored. Contractor that built the shop came out and looked at it and said it doesn’t need a new roof and keep the check. Had a little extra fun that summer with the money.
Nationwide, 2014What was that, 40 years ago?? Can't fathom that happening today, especially with a larger insurance company.
Similar at work. Our building is basically a steel roof pole barn warehouse. Spring before the derecho, we had a hailstorm. Though it only caused cosmetic damage, it was still a coverable loss. They said we COULD pocket the money and not do the replacement, but then any additional future damages would NOT be covered. So we kind of had to do something.We had a storm go through but I didn’t think it was that bad. My insurance agent told me to turn it in anyway. Adjuster showed up and said the roof of my house had no damage. He asked if he could look at the shop roof. It’s a 72x80 steel building that I didn’t think would have any damage but he looked anyway. After looking at it he went to his car for about 15 minutes. I figured he would just leave after not finding anything. He steps out of his car and walks over and hands me a check for $30k. Says the shop needs a new roof. I was floored. Contractor that built the shop came out and looked at it and said it doesn’t need a new roof and keep the check. Had a little extra fun that summer with the money.