WTK: Property insurance payouts in Trinidad

[The_Honourable]

Hello Tuners,

Well we know the behavior of insurance companies when it comes to property. When disaster strikes, the companies routinely pay less than what policies promise where owners assume they are fully covered. Paying out less to victims of catastrophes has helped produce record profits for these companies. Question:

What are the loopholes these companies use in order to reduce payouts?

I know that if certain documents like for example, an updated electrical inspection certificate (forgot the exact name) is not lodged every few years with your insurance company, when disaster strikes, they can use that as a loophole to reduce payouts.

Which reminds me, what documents should be lodged with your insurance company so you can minimize the effect of a reduced payout when disaster strikes?

I know these are the important details that most insurance agents conveniently don't tell you. Any tuners want to share their story on payouts from our local insurance companies?

Thanks!

[zoom rader]

I gave up paying house insurance after my mortgage was paid off. It's not really worth it when you own your home outright. After you paid out you mortgage you will find your home is devalued with a higher premium to be paid. I did a private evaluation and my home was nearly doubled but the insurance company said the age of the house is a factor. My house was only 20 years old. So just as car insurance companies , house insurance you need to be careful on what value you are paying for.

[The_Honourable]

I gave up paying house insurance after my mortgage was paid off. It's not really worth it when you own your home outright. After you paid out you mortgage you will find your home is devalued with a higher premium to be paid. I did a private evaluation and my home was nearly doubled but the insurance company said the age of the house is a factor. My house was only 20 years old. So just as car insurance companies , house insurance you need to be careful on what value you are paying for.

So you are saying that, insurance companies devalues your property (older the property, higher the premiums) while more than likely after X years, the market price of the same property has gone up?

[j.o.e]

Market price and replaceable value is two different things. A house is bricks, mortar, cement, steel regardless of the 'area' or market value.

[brams112]

Hello Tuners,

Well we know the behavior of insurance companies when it comes to property. When disaster strikes, the companies routinely pay less than what policies promise where owners assume they are fully covered. Paying out less to victims of catastrophes has helped produce record profits for these companies. Question:

What are the loopholes these companies use in order to reduce payouts?

I know that if certain documents like for example, an updated electrical inspection certificate (forgot the exact name) is not lodged every few years with your insurance company, when disaster strikes, they can use that as a loophole to reduce payouts.

Which reminds me, what documents should be lodged with your insurance company so you can minimize the effect of a reduced payout when disaster strikes?

I know these are the important details that most insurance agents conveniently don't tell you. Any tuners want to share their story on payouts from our local insurance companies?

Thanks!

Meet some agents and ask them nah.

[The_Honourable]

Hello Tuners,

Well we know the behavior of insurance companies when it comes to property. When disaster strikes, the companies routinely pay less than what policies promise where owners assume they are fully covered. Paying out less to victims of catastrophes has helped produce record profits for these companies. Question:

What are the loopholes these companies use in order to reduce payouts?

I know that if certain documents like for example, an updated electrical inspection certificate (forgot the exact name) is not lodged every few years with your insurance company, when disaster strikes, they can use that as a loophole to reduce payouts.

Which reminds me, what documents should be lodged with your insurance company so you can minimize the effect of a reduced payout when disaster strikes?

I know these are the important details that most insurance agents conveniently don't tell you. Any tuners want to share their story on payouts from our local insurance companies?

Thanks!

Meet some agents and ask them nah.

Besides that, i want to hear stories from tuners who went through this process.

[nismoid]

Hello Tuners,

Well we know the behavior of insurance companies when it comes to property. When disaster strikes, the companies routinely pay less than what policies promise where owners assume they are fully covered. Paying out less to victims of catastrophes has helped produce record profits for these companies. Question:

What are the loopholes these companies use in order to reduce payouts?

I know that if certain documents like for example, an updated electrical inspection certificate (forgot the exact name) is not lodged every few years with your insurance company, when disaster strikes, they can use that as a loophole to reduce payouts.

Which reminds me, what documents should be lodged with your insurance company so you can minimize the effect of a reduced payout when disaster strikes?

I know these are the important details that most insurance agents conveniently don't tell you. Any tuners want to share their story on payouts from our local insurance companies?

Thanks!

Firstly,
General Insurance was never designed to make you rich or even in a better off place. It was designed to replace your assets and have you in the same level of comfort you were before the loss or damage to said asset.
That's where 'Replacement Value' comes in as another tuner briefly said before, what that means for example is if you had a fire coverage policy for $150,000 on your house and you have a valuation for lets say $2M for your house, if a fire does damage any part of said house the insurance company will pay you to a maximum of $150k after they determine the cost to repair the property and bring it up to the condition it was before the fire.
The valuation people get for their homes is based on the SELLING PRICE and most times they are under the impression thats what the insurance company will pay them for their house which is not so.
Another thing that happens is people generally buy property insurance based on COST and not on benefits, they look for the CHEAPEST premium possible while turning a blind eye to the reality of what will happen if a disaster strikes.
So in a nutshell if you believe that the replacement cost of your house is X Value, then have your insurance agent calculate you premiums based on that taking into consideration all risks associated with where you live etc and only then will you have a payout that you expect and no surprises in the end.

[The_Honourable]

Hello Tuners,

Well we know the behavior of insurance companies when it comes to property. When disaster strikes, the companies routinely pay less than what policies promise where owners assume they are fully covered. Paying out less to victims of catastrophes has helped produce record profits for these companies. Question:

What are the loopholes these companies use in order to reduce payouts?

I know that if certain documents like for example, an updated electrical inspection certificate (forgot the exact name) is not lodged every few years with your insurance company, when disaster strikes, they can use that as a loophole to reduce payouts.

Which reminds me, what documents should be lodged with your insurance company so you can minimize the effect of a reduced payout when disaster strikes?

I know these are the important details that most insurance agents conveniently don't tell you. Any tuners want to share their story on payouts from our local insurance companies?

Thanks!

Firstly,
General Insurance was never designed to make you rich or even in a better off place. It was designed to replace your assets and have you in the same level of comfort you were before the loss or damage to said asset.
That's where 'Replacement Value' comes in as another tuner briefly said before, what that means for example is if you had a fire coverage policy for $150,000 on your house and you have a valuation for lets say $2M for your house, if a fire does damage any part of said house the insurance company will pay you to a maximum of $150k after they determine the cost to repair the property and bring it up to the condition it was before the fire.
The valuation people get for their homes is based on the SELLING PRICE and most times they are under the impression thats what the insurance company will pay them for their house which is not so.
Another thing that happens is people generally buy property insurance based on COST and not on benefits, they look for the CHEAPEST premium possible while turning a blind eye to the reality of what will happen if a disaster strikes.
So in a nutshell if you believe that the replacement cost of your house is X Value, then have your insurance agent calculate you premiums based on that taking into consideration all risks associated with where you live etc and only then will you have a payout that you expect and no surprises in the end.

Thank you for the explanation Nismoid, i appreciate it.

So basically, insurers deal with the Replacement Value and not the Selling Price of the property and it is the job of the owner and the agent to calculate a realistic Replacement Value. When that value is calculated and set in stone, it is the job of the owner to have up to date documents handed in to the insurer (like the electrical inspection certificate) so that if disaster strikes, the insurer would not use loopholes to minimize your payout.

Am I correct here?

[nismoid]

Correct indeed

[cutthroatInt]

Guys, to bump an Ole thread, what are some of the more reputable companies to approach for home owners insurance in trinidad these days? 2017.

To draw reference to ques: I do not want companies like what Capital Ins is like for car insurance.

In event of something happening, I do not want any run around in payments assuming everything straight on my end.

[pugboy]

Had two fires(one major, one minor) and tatil covered both of them.

Note that fire insurance scheme operates opposite to car insurance
with car insurance the assumption is that the car is a rapidly depreciating asset so they try to give you less.

with house insurance you need to have insurance covering the full replacement construction cost otherwise they prorate the payment down, amazingly this is the racket they all operate by.

Guys, to bump an Ole thread, what are some of the more reputable companies to approach for home owners insurance in trinidad these days? 2017.

To draw reference to ques: I do not want companies like what Capital Ins is like for car insurance.

In event of something happening, I do not want any run around in payments assuming everything straight on my end.

[cutthroatInt]

Thanks. What u know of maritime. D guardian wrt to property ins and trouble to pay when times comes?

[Cheddar]

Thanks. What u know of maritime. D guardian wrt to property ins and trouble to pay when times comes?

I have all my insurances with Maritime, from Life, Health and General and i have had no problems thus far. I have had a few claims also both Health and General and have been compensated fairly.

What you have to realise is you get what you pay for. A few tuners discussed it earlier, an insurance company is only liable for an agreed replacement value not market value.

But you can talk to an agent and see what your options are. You can call my agent at Maritime, Mr. Rambharose at 286-0890, he can give you more info.