5 Home Insurance Problems Your Insurance Commissioner Cannot Help
Insurance is regulated by individual states. When you have a dispute related to any type of insurance you can reach out the Department of Insurance of your state. However you should be aware that your insurance commissioner may not be able to help you in these critical issues.
1. Dispute an decision made in accordance with the underwriting rules of the insurer
If your policy was terminated or your premium is raised as per the underwriting rules of the company then you cannot get help. Each company is allowed to set their own underwriting guidelines based on their risk tolerance. For example your bull dog or your swimming pool may be perfectly acceptable to one insurer and may not be acceptable to another.
2. Resolve the dispute that is a question of fact
A large number of disputes are about the insurance claims and the amount that the customer expects to get paid. For example if your favorite sofa is damaged and your insurance company is willing to pay only half what you think it is worth then the complaint process won’t help. You can either take the company to the court or use appraisal process to resolve the dispute.
3. Require an insurer to pay a claim
Most people think that the insurance commissioner can just ask their insurance company to pay their claim. It is not the case. The insurer is required by law to deal with you in good faith. If they look at the damage and decide that it is not covered by your policy then you are out of luck.
4. Provide services required to settle complicated problems
Complex dispute require significant efforts including inspection of damage, estimation of loss and negotiation services. These are not provided by your state.
5. Recommend or rate a company, agent or service
Now that you have a dispute with your insurer and the commissioner is unable to help. If you ask for a recommendation about what to do next, for example should you file a case, who should be your attorney or which insurer will be better for you then you cannot get answers.
Insurance commissioner can help you with matters related to process. If the insurance company or its representatives did not follow their own documented processes or the requirements imposed by law then you can hold them accountable.