The concept of insurance is not new and is a great concept. Where it can go badly wrong is when the insurer puts the profitability of the company above the best interests of the insured. The exalted adverts often lead the insured to have expectations which will never be met by the insurance company.
I have 3 guides when it comes to insurance and how to go about it wisely.
1.) The loss adjuster is the person who will inspect your loss and will generate a report for his principal. Generally the insured (you) cannot regard these individuals as friends. They come onto your property exuding bonhomie but their real task is to save the insurance company money usually at your expense. This applies to all agents of the insurance company. I find it advisable to let them do their job but make sure you have your own advisor on hand to assess your loss to find that balance between your interests and that of the insurance company.
2.) It is very unwise to insure with direct insurance companies. They seduce you by claiming that there are no broker fees. This is true, there are no broker fees. The money goes into the pocket of the insurance company and you as the insured are deprived of a valuable agent who could and should assist you with your claim. Beware!
When insuring, make sure that you have a reliable broker. In the unfortunate circumstance that you do have major claim, please seek professional help with all aspects thereof.
3.) Avoid (if you can) going to court. Your bank account will thank you! The cost of your legal fees can potentially cost you more than the value of your claim. The reason for this is simply put that you pay for your lawyers hourly fee even when sitting waiting at court for the judge to call your case. This could mean 3 hours of legal fees to just sit and wait for your judge, or it could be a days worth of legal fees to sit and stare at a court room wall waiting for the officer of the court to tell you that your case won’t be heard today. My advice would be to avoid court at all costs.