Skimpier payouts
This article appeared in As insurers cut their risk, consumers who file claims might be hardest hit. Insurers are paying out less than they did years ago. The industry's pure losses—what they paid in claims—represented about 55 percent of premiums in 2007, down sharply from about 66 percent in 1987, according to the Consumer Federation of America.
That reduced payout has the greatest impact on people with large claims. The average claim filed by Hurricane Katrina victims in our survey was $15,000, more than three times greater than the claims filed by other respondents. But 26 percent of Katrina respondents said they'd received too little, compared with just 11 percent of others. No surprise, only 51 percent were highly satisfied with their insurer, compared with 74 percent of others.
Our advice
Learn how to deal with the adjuster, who might be your chief connection with the insurer after you make a claim. On Making a claim: How to get your due, we offer advice on filing claims from industry professionals as well as from readers who picked up the pieces after Hurricane Katrina.
