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Our top story tonight insurance companies becoming -- here with payouts.
As residents pick up from the huge tornado this week in Oklahoma insurance experts.
Warning payouts will be smaller than recent years with more of that cost being shifted right on the -- -- and this isn't just happening in Oklahoma.
It's a trend all over the country.
The -- couldn't come at a -- time we just heard that this year's hurricane season will be very active it's just getting under way.
The US expected to be hit with six major hurricanes this year double the average so.
How do you protect yourself with -- -- -- Maryland the founder and president of Merlin law group and Spencer -- from Ericsson insurance advisors welcome to you both.
Chip all served with you -- so.
Here we have these victims of this horrific tornado.
The EF five -- really strong and Moore Oklahoma and now they're being told they're gonna get a smaller -- than they typically would.
Well there's a number of reasons right now first ball most people deductibles have been going up much more so than what is -- what has happened in the past.
And the second thing policies are being -- written so that there's actually.
Less coverage at what people are buying is they think they're getting the rocket Gibraltar -- have this -- protection don't really what's happening.
Instead they're getting wandering mutual -- getting less coverage for -- higher price and it's a problem throughout the country not just for homeowners but for businesses to our.
Our -- and that the most important thing to remember to get -- good agent that can really go through LLC as.
That's the so called mandate here OK -- I wanna see what he had to say that -- so I got my question answered.
Why is this happening because look I signed my policy.
I expect to be made whole I'm paying my deductibles I'm doing everything I'm supposed to how is it that they can ratchet back the money -- getting.
I think it does depend on the insurance company chip's write it depends on needs do you have any -- today you have.
The good companies -- -- companies are paying claims when we go back and look at sandy.
The -- New York has posted that less than half a percent of the consumers have filed claims had complaints against -- insurance company.
So chip is right there are some insurance companies out there that are less reputable.
But at the end of the day if you have a good trusted -- insurance agent that can advise you through the process and get yourself with a good company.
You're gonna have a good claim settlement.
Well you know look I've been covering this kind of thing for about seven years now.
Starting what you know way back.
With the hurricane in New Orleans and let me tell you I see more people who are unhappy with their settlements and I see people who are happy.
There's something wrong with the system chip what is it.
Well first thought think the statistics are very misleading.
Most people in New Jersey right now -- along the shore hadn't been paid everything and there's a number of reasons -- national flood.
Set out a memorandum to all the -- -- justice that have national flood does an audit.
And they find that there's been an overpayment.
That the field adjusters and their companies -- three -- national flood.
So you know which way the payments going and that's down.
There -- people -- have delayed payments -- -- payments very few people along the Jersey Shore have been fully may hold just like you said and that's the fact and unfortunately.
And Oklahoma as we learn to act in Birmingham to Tuscaloosa.
What people can expect as a fairly long delay before they -- Finally get that the money the public insurance industry right now there's a lot of delay and the claims payment and then when they did get paid it's far too little well.
Here's the deal though with the tornado it's not like a hurricane.
Are working have -- you have -- you have multiple problems that can go on the with a tornado.
Hey it's the wind you're in you're house is being demolished it should go like.
This it -- go like clockwork it should be smooth Spencer is that what you're expecting on the ground.
Well -- talk about the National Flood Insurance Program is certainly that has problems but the private companies that are reputable I really not -- that Jerry.
There are companies insist places Florida where the market is really tight and companies don't want to write insurance there and say you're getting some companies that are popping up that may be don't have strong financial -- well.
At that actually brings up a good point because in Florida what's happened.
Is that the state is basically stepped in and said we're gonna ensure homeowners because we can't get the private industry and here we can get private insurers and here they don't want to do business here.
Because the risks are so high.
Should take a look at this -- graphic about storms taking a tall and how much money that is insurance companies are facing this is insured losses.
All you have to do is look at the fever chart here it is a huge spike in the kind of lots of these companies are having to cover.
What do you tell people who feel like look I'm not being made whole here -- -- negotiate.
DA document what's the right answer.
Well the right answer as to start way before -- at the point of sale.
To get what the reputable insurance company don't -- deductible that's too high.
Get good coverage if you possibly can it's not after it happens that you you need to take the precautions before and and then try to mitigate get.
Get your -- get your business -- -- it can't be protected you mitigation efforts really do pay off because then you have a lesson here.
Disaster happens to you if you take that proper preparation.
Well you know -- earlier you mentioned that deductibles have they have been going up and and here's what.
The Oklahoma insurance catastrophe task force had to say they say the days of having a two -- -- deductible or even a 500 dollar deductible are very quickly going away.
If there -- there at all yet there was still a little more risk so Spencer I don't really want to assume more risk I -- good policy.
How do I get that I know you're gonna say hire an agent who might get an agent that you liked that.
Given the bingo bingo -- this what am -- looking for in a policy and what should I expect to pay.
Well you definitely want to find a policy it's very comprehensive insurance policy homeowners policy is not a commodity.
Every contract changes and is different and you need to make sure -- -- understand the contents of that contract and how it's gonna react heard their -- storms.
In the case of deductibles.
Insurance is purest form as -- transfer -- risk.
And unfortunately it's not at home maintenance policy you have to take a little risk yourself that's healthy for the industry we want you to have a safe home we want to have pride in your home.
And you should share in the rest with the insurance company and let them take the high risk -- the catastrophic loss you take a little lower risk.
Chip last word here what would you tell people out there who want to make sure they get the best policy at.
And get the coverage they needed a catastrophic event like the one we just saw in Oklahoma.
Well go get the most reputable agency actually spend a lot of time -- to know your insurance needs.
Whether or your business our home water and then afterwards.
After the catastrophe happens make certain to draw on top of the insurance company get better just are out there for heaven's sake you need to go get your own second opinion and your own professional to help you.
Unfortunately not every insurance company is reputable out there directed awards are few and far between is what we're finding both the new New Jersey throughout the country -- the catastrophes happen.
And while we're gonna say on this story that's for sure what other word I'd -- here.
You need to document your -- -- a lot of people don't know to do that don't.
Don't fix your home up after a big event -- and take the pictures the video so.
You can show your agent exactly what happened chip and Spencer thanks for coming on tonight great to see guys thanks so much -- Banks.
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