The Louisiana Legislature heard many testimonies and complaints about real estate insurance companies that not only paid slowly but also paid far too little on hurricane claims after Hurricane Ida. The stories were similar to the post earlier this week in which a federal judge found an insurance company guilty of bad faith for slow payment in Claim Delay Leads to Bad Faith Judgment .
An article in LaFourche Gazette noted :
Slow response to claims. Constant changes of insurance adjusters who assess the destruction. Low payment offers that force people unnecessarily into litigation to get a fair deal.
Louisiana lawmakers and others said on Wednesday that these are the problems they see and hear with the insurance industry as homeowners struggle to rebuild and recover from Hurricane Ida,
Republican Senator Mike Fesi, who lives in the hard-hit Terrebonne Parish, said he had been waiting 90 days for a payment offer from his insurance company.  & # 39; Just not knowing is worse than anything else. Either you will get paid or you will not get it, Fesi said during a joint meeting with the insurance committees in the House and the Senate. "I can not say whether companies are deliberately postponing."
"Report number one is delays: slow pay and no pay," said Doug Quinn, CEO of the nonprofit watchdog group American Policyholder Association, which tracks insurance issues after Ida.
So why is this happening? Is it on purpose? Merlin Law Group's clients asked me to publish a letter from their first disaster manager to show some reasons why this could happen:
This letter states at least two reasons why I have heard across the country why Disaster controllers have problems with the emergency departments. The first problem is that many independent disaster management teams have changed their payment methods so that the amount of money paid for those who leave home and go to areas with extensive disasters has been reduced. The second is that desk adjusters that do not go out into the field are forced to reduce the damage estimates provided by disaster adjusters.
It is not just an adjuster who wrote the letter. I recently taught a public conversion course where two experienced former disaster setters had very similar stories about why they left the independent disaster industry. They shared their stories of new pay scales and desk adjusters who incorrectly changed their estimates with the whole group. Another former disaster adjuster in a forest fire in Colorado broke down and cried and explained why he felt guilty working for a company that made the desk adjuster halve his estimate for a completely burned home where it was clear to him that the policy limits should be paid –
One thing insurance commissioners can do is demand that the original field estimates be provided to the policyholder and then require the desk adjusters to provide a written explanation as to why changes have been made. Of course, field adjusters can make mistakes, but why not provide both the original estimate and the revised desk adjuster's estimate with an honest explanation of the changes made – if the insurance company has nothing to hide? This honest transparency should always be present and would help to reduce some of the low tactics that many insurance companies' claims departments use in emergency situations.
Thought for the day
 lack of transparency leads to mistrust and a deep sense of insecurity.