I was wondering if anyone has any experience with fighting insurance. I was screwed really bad and I'm not sure where to go from here.

The details.....my bike was stolen recently. I just bought it in april06 and I have the receipt. MSRP is $4560+tax but it will be around $4000 to replace if I can find it on a decent sale (I know, I know, $4k+ for a bicycle????).

My home insurance covers personal property to well above the bike value but has "special limitations". My policy documents list many of these "special limitations" (ex. jewelry is insured only upto $2000) but BICYCLES ARE NOT LISTED.

I called to make a claim and was told my bike had a "special limitation" of $1000 AND a $500 deductible. AND my rates go up 5% if I claim this (effective claim value after 4 years is $360 to cover my $4000+ bike). Apparently my policy was changed and the bike limitation was added. I have no documentation of this change. I even have letters from my insurance back to 1995 but no info on this convienient change in any of my letters. They say they always send notices when policies change, and I must have thrown out the info. I say BS!!!

I don't even know where to start fighting this? Anyone have any experience with this crooked industry?

 

Did you buy using a credit card with loss/damage insurance? I used an AMEX once and they honoured it for a camera.

Otherwise, it may be worth getting a lawyer or even the media involved...I think Citypulse has one of those investigative reporters.

Hope things work out for you...that's some bike.

 

WOW, that's a pretty tough loss to swallow....
They can be a real PITA at times; just ask Godmans about his car.

Sorry I don't know of anyone that has fought & won.
That said, they still have to abide by contract law.
If they changed the coverage, they should have to prove it.

 

Hi Sean
I am actually in this industry and I hope I can help you out a bit.
Were you looking in your policy booklet to see these exclusions and limitations or was it on your renwal documents? The policy booklet usually outlines all of the exclusions and limitations (it makes for a pretty dry read)
The insurance company will only send you out documents when there is a specific change to YOUR policy, not when legislation changes or other limitations change.
If you want to press this further, your best bet would be to contact the ombudsman for that company. Your insurance company will give you their name if you ask. They handle any disputes between individuals and their insurance provider.
For the future, if you buy any bigger ticket items (especially any that are very mobile) you should contact your insurance provider because there is usually limitations on certain things. You can get a rider put on your policy to cover most of these things and it will cost you a little bit extra, but it is definately worth.
I am sorry to hear about your bike and the problems you have been having.
If I can help in the future, let me know
Matt

 

A little addendum to this, everyone should request a copy of their insurance policy booklet (whether it be for car or home) to be mailed to them and take a couple of minutes to see what their exclusions and limitations are. They sometimes differ from company to company and it would be wise to review it.

 

I checked and my credit card would cover this upto $1000. Unfortunately they had a 90 day limit. I looked up the actual purchase date and DOH!!!! over 90days.

Excellent idea though, thanks!

 

Matt and others,

Thanks for your replies and info. I will definitely try to contact an ombudsman.

Regarding the exclusions, it was my policy booklet that I read. It may be a dry read for most, but for me, I don't think I have ever been as into a book as I was that day.

The policy book I have is an old one that apparently has changed. I'm pretty sure that I never recieved an upto date one or had any way of knowing that one existed.

Do they have to get a signiture before changing your policy or at least something to acknowledge that you have been informed?

 

Sean,
Great post, as it has opened my eyes, and immediately following hammering out this post, I'm headed to the filing cabinet to check on this for my own insurance.
Really sucks; I know how possessive I am with my bike.
Just out of curiosity, what kind of ride is it that you'll be replacing?

Regards,
Derek

 

Hi Sean
When your company makes a change to the policy wording they usually send out sometuhing with your renewal documents stating that the limitations have changed, I know this is how we do it.
I know what you are saying when you have never been so familiar with that booklet as you have been lately.
It is so important to read what the limitations and exclusions are when you get your policy.
Your agent or broker would not be able to tell you everything when you are doing up the policy because it would take hours to explain everything.
I let people know about the most important things and advise them to consult the book for everything else because everyone elses needs are different. Some people collect antiques, some have expensive bikes etc.
Jewellery is a big one, most policies cover up to $5,000 max and any one piece $2500. If you or your spouse has a piece of jewellery that is over $2500, it is best to get a rider on your policy that will cover that piece.
How it works is that you give the insurance company the appraisal for the piece (has to be within the last two years) and the company will insure it for that amount for all risks and with no deductible.
Boy, I am really getting off the topic of cars, but it is better to have this info before something does happen.
Take care
Matt

 

I will get an insurance rider on my replacement bike. Do your rates go up if you make a claim on the rider?

About the policies, I did a lot more digging through the Consumer Protection Act, governing financial services, etc. It would seem that insurance is one of those industries where there aren't any consumer protection laws. They can change my policy whenever they want and there is no liability to ensure that am aware of the changes let alone ensuring that I consent to them.

I was literally told that "my broker could legally change my policy, write down the change, put my name on the note and throw it out the window while hoping it will reach me". If the wind doesn't blow the policy change note to my doorstep, I am out of luck.

 

Hi Sean
Rates go up on any claim that you make.
The difference with you putting a rider on your policy is that you will not pay a deductible.
A good rule of thumb is to not put in a claim if the loss is not at least twice your deductible. The insurance is there for the bigger claims (water damage, fire, etc) and not things like broken windows etc.
The problem in our industry is the widespread fraud, everyone knows someone that has inflated or put in a false claim.
That makes it harder on everyone else because we have to make sure everything is legit and it can sometimes be frustrating for our clients.
Usually the claims process runs smooth though and there are not any problems but soemtimes things fall through the cracks.
Take care
Matt

 

You've got some sound advice there dubble t- Matt.

Thanks
Deane

 

Why harness this unbridles knowledge when it could be used for good! lol
I am glad I can help out.
If anyone ever needs any advice, I am more than happy to help.
Insurance can be confusing as hell and depending who your insurance carrier is if you call in to ask if a claim would be covered, it will be recorded as a claim even if the payout is not over your deductible. The reason for this is that the insurance company looks at the number of incidences because it could show a pattern. They figure that you could have 2 or 3 small incidences but it is just a matter time before you have a big one.
So before you call your company, make sure that the damage is well over your deductible because you don't want a claim on your record if it doesn't need to be.
On another topic, anyone know where I can get a coupe midpipe for my car?