News Alert, Sept. 14, 2013, Morning Edition, #RealEstate +

Linking ≠ endorsement. Enjoy and share:

  1. Insurance Fraud Not Limited to U.S. Market | PropertyCasualty360

    This is a great thing for the insured(s) (the party or parties covered by the insurance).

    One significant change first emerged in the UK over 20 years ago, where insurers attempted to reduce claims leakage and fraudulent 'scope creep' by directly repairing damaged buildings or replacing lost goods, rather than allowing the policyholder to have control over the fulfillment process. This new model replaced the traditional approach of the policyholder providing three estimates for repair (often provided by the same building contractor, using different letterheads).

    The approach also had the secondary benefit of providing additional customer service at a time of extreme anxiety. This approach remains in place, and as a result the UK P & C insurance industry has evolved to develop new capabilities especially in procurement and supply chain management.

    The model is best described by example. In the event of a policyholders home being damaged (or even destroyed) by fire, the insurer will directly appoint the restoration company to do the cleaning and debris removal; the insurer will directly appoint a surveyor or engineer to design and supervise the repairs in accordance with local and national standards; and also directly appoint the contactor [sic] to carry out the work itself. The restoration company, surveyor, and contractor are retained all by the insurer under a term contract—perhaps 12 or 24 months—to carry out the work usually at discounted rates.

    We can't give you statistics for how prevalent this is in the US; but, as an insurance brokerage (insureds' agent rather than carriers' agent), PropertyPak™ wants you to know that the very ending there is the place where the insured has reason to be cautious. The insurance policy can have various limits. If the insurance company or carrier doesn't choose the best providers {restoration company, surveyor, engineer, architect, contractor(s), etc.} for the money and doesn't do a solid job of monitoring the schedule, work, materials, and everything else required under law and the contract documents, the insured could reach a limit set in the insurance policy where with different providers, the insured may not reach that limit or may reach it with more work having been accomplished for the money.

    That said, a great place to start the decision-making process concerning whether or not to go with this insurance format is with the carrier's reputation and rating. (A.M. Best Company is the insurance industry's standard rating agency.) A carrier with a solid record handling this process will likely do a decent job going forward of watching costs for all concerned. You might also check the providers via various private and governmental entities, such as the BBB (Better Business Bureau) and licensing agencies.

    Read the source article … 08/08/insurance-fraud-not-limited-to-us- market

If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.

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Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.

Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.

We do not necessarily fact checked the contents of every linked article or page, etc.

If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.

The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?

For our part, we believe in strong regulations and strong regulators.

We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.

We are allowed to share rating-bureau data/reports and industry-consultant opinions but make clear here that those opinions are theirs and do not necessarily reflect our position.