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Survey: Consumers not satisfied with homeowners insurance payout

Posted On Tue, August 28, 2012

According to a recent Consumer Reports survey, many homeowners whose properties have been damaged in a disaster are dissatisfied with the payout from their homeowners insurance providers.

The survey, which received responses from over 11,000 consumers, showed that 10 percent of homeowners did not agree with their insurer's initial offered amount. If the damage was $25,000 or more, the number jumps up to 19 percent. For consumers with a costly amount of damage, insurance providers paid a median of $7,000 less than the claimed loss.

Some of the lowest-rated insurers in terms of customer satisfaction were some of the best-known names. Farmers Insurance and Allstate scored the lowest in payout satisfaction. Amica and USAA, an insurer for military families, were the highest-rated.

One way to fight a meager payout, according to ABC news, is to dispute it. On average, consumers who disputed a small offer received $6,000 more from their insurers.

While disputing, consumers should read their policy carefully and make sure they fully understand what types of damage were covered.

With homeowners insurance rates most likely on the rise next year due to the high number of natural disasters over the first half of the year, ABC advises consumers to consider raising their deductibles to cut costs.

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