Delaware Business Insurance Update from CNC Insurance Associates Inc. "Federal Government take over of Homeowners Insurance? 11-17-13

I couldn't believe what I was reading. A New York insurance regulator sees the ACA act (Obamacare) as a model for standardizing homeowners insurance. The regulator believes there is room for improving how customers understand the complexities in homeowners policies and the Federal Government is the ticket to get this done. This is absolutely a bad idea. Homeowners insurance is a complex product. Standardizing this insurance product is not going to fix the problem of surprised consumers after claims. Insurance companies market the homeowners policy like it is a commodity. People think they are covered for everything. Agents try to educate by sending out checklists and coverage reminders all the time but consumers are reluctant to spend hard earned money in coverage they think they do not need. In addition the flood versus wind debate after major storms always causes problems because homeowners policies rarely cover flood, but people still think they do. So when their flood claim is not paid by the homeowners policy, consumers complaints rise.
Federal involvement in homeowners insurance is probably inevitable if the ACA law gets it's act together and grows to a single payer health system. The proverbial "genie out of the bottle" scenario will result. More consumers want guarantees of coverage from insurance, including their homeowners insurance. Until next time be careful out there and know your risks.
By G. Kevin Nemith, President CNC Insurance Associates Inc. Small Business Insurance Center
Serving DE, PA, MD, NJ, & VA.
www.cncinsurance.com
www.bizinsurancetv.org

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