Attorney Ryan Suerth specializes in representing clients who are left with no alternative but to take an insurance company to court over a property insurance claim. Suerth wote the following article that appeared as an Op-Ed piece in the New Haven Register in September, 2012:
FORUM: Insurance policy should pay off fairly when needed
Published: Wednesday, September 19, 2012
By Ryan Suerth
If Tropical Storm Irene could ever be credited with anything positive, it would be that she blew the cover off a systemic consumer protection problem: When catastrophe strikes, insurance policyholders are at the mercy of insurance companies.
While the numerous insurance-related stories stemming from Irene involve varying degrees of loss, those who submitted insurance claims share one important commonality — an inequitable insurance claim process.
Consumers purchase property insurance so that, in the event of a loss, they will be placed back into the same financial position they occupied prior to the loss. With the exception of a policy deductible, policyholders should be able to expect that paying for insurance means the repair or replacement of property with zero cost to the policyholder.
Sadly, this is an almost certain impossibility because insurance companies possess all the power in the process.
The claim process begins with the involvement of insurance adjusters hired by the insurance companies to investigate, evaluate and calculate policyholders’ claims.
These adjusters do not represent the interests of the policyholders. But someone who has just lost a home is understandably overwhelmed, and can be lulled into a false reliance on the insurance company’s adjuster. There is no red flag until after the policyholder receives a check for less than the amount needed to restore a property. Or, in some cases, there is a claim denial.
It is reasonable to be skeptical about the amount determined to be covered under an insurance policy when it is determined by someone other than an advocate for the policyholder. Admittedly, policyholders can submit their own proof of loss — estimates and receipts for the repair or replacement of property — but this can be a daunting task, especially for those dealing with the emotions of catastrophic loss.
In Connecticut, policyholders can seek the assistance of a licensed public insurance adjuster who will represent the policyholder’s interests in the preparation and negotiation of their insurance claims.
Public adjusters pride themselves on the ability to recover money for the policyholder over and above the amount established by the insurance company’s chosen adjuster. For this result, the policyholder pays a commission.
The need for this service highlights the financial inequity of the process. In order for a policyholder to obtain independent assistance with his claim, it costs him a portion of the money rightfully owed by the insurance company.
The inequity of the process is worse when insurance companies deny all or part of policyholders’ claims. In such instances, the policyholder is left with little choice but to resort to costly and time-consuming litigation to enforce their rights.
In situations where a claim is relatively small, it makes no financial sense to pay a lawyer to pursue an insurance company if the attorney’s fees are going to exceed the amount in dispute.
In Connecticut, unlike some states, policyholders are not typically entitled to recover their attorney’s fees if they successfully sue their insurance company. This aspect of Connecticut law prevents policyholders from enforcing their rights in court, and effectively lets insurance companies off the hook when they have wrongfully denied coverage.
In the end, policyholders must make difficult financial decisions in order to protect their interests. Despite the purchase of insurance, they may never be made financially whole after a loss.
Policyholders are essentially forced to take what the insurance company decides it owes under the policy, and not a penny more. In a state commonly referred to as the “Insurance Capital of the World,” consumers deserve better. Our elected officials need to act to ensure that policyholders truly get the full benefit of their insurance policy, especially in the event of another disaster like Irene.
To learn more about Ryan Suerth, visit his website at ryansuerth.com.