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Scumbag insurance policies
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torsoboy
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Feb 23, 2010, 10:23 PM
 
My water facet recently started leaking, so I called up my home owner's insurance company to get it fixed. They sent a local contractor over to take a look, and the guy determined that the facet was rusted down the center, and it would need to be replaced. So they (local contractor) called up the insurance company to get the replacement authorized, and the insurance company authorized a replacement, but not for our same somewhat-nice faucet.

So I called the insurance company and said, "This policy says right on the front page, in bold, "We will replace covered items that fail when we determine they cannot be repaired, regardless of age, make, or model." So why is my contractor telling me that you wont replace it with the same model?" The insurance woman said, "Our policy does not state that we will replace it with the same make and model, it only says that we will replace it, regardless of its make or model."

Arrg! So basically, they will replace any make or model, with a crappy generic model of their choosing.

Insurance companies (all kinds) make me sick.

On top of my yearly fee for the warranty, I also have to pay $60 per service visit, and I have to pay to upgrade the replacement facet to be the same model as I already have.
     
imitchellg5
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Feb 23, 2010, 10:42 PM
 
Ha. Don't even get me started on insurance companies.

Last summer when my car was totaled by hail, my insurance company kept charging me for full coverage (which was my plan before). Then I realized that if I caused a wreck (or another storm came) I wouldn't get any money at all. Then my agent confirmed. I wasted over $150 thankyouverymuch.
     
reader50
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Feb 23, 2010, 11:17 PM
 
Huh. After reading the title, I was expecting a novel new kind of policy. Insurance you can buy against scumbags. Soon to be extended so you can insure against encounters with annoying neighbors, door-to-door salesmen, door-to-door religious recruiters, and zombies.
     
torsoboy  (op)
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Feb 24, 2010, 12:06 AM
 
Let's make this a general "scumbag business policies" thread instead.

In October my wife and I got memberships at Resultz fitness center, and it was decently priced, and close to our home. They do not have a specific term contract (or so they say), and you pay month-to-month as you go. When you sign up, you pay for the first and last month (which is generally fine), and there is a 30 day cancellation policy.

We didn't use the memberships very often, so a couple of weeks ago I went in to cancel our memberships. We had just barely paid the February bill, and I figured that I could cancel, and the 30 day cancellation policy would push us into March, and the "last month" fees that I paid in the beginning would cover that. But nope... that's not the way they wanted to roll with it. I came in, asked to cancel my membership, and they said, "Okay, your last membership day will be May 1st." I was like, "Say what? How would it be May 1st?" It turns out that they wait 30 days before submitting your cancellation request, and then your last month's payment that you paid when you signed up comes into play. So it's like this:

I paid for February on Feb 1st.
On February 5th I requested a cancellation.
They hold my cancellation request for 30 days before submitting it
March 1st rolls around and my cancellation request isn't in the system yet (it hasn't been 30 days), so they charge my debit account for the month of March.
On March 5th they will put the cancellation request into the system.
On April 1st their system sees that I want the account canceled, and they use my "last month" money that I paid in the beginning to cover April.
May 1st, the membership is canceled.

This is crap, in my opinion. Basically they are purposefully stealing a full month's membership fees from anyone that wants to cancel their membership. I was very upset at the owner, but she just kept saying "It says right in the contract that there is a 30 day cancellation policy."
     
turtle777
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Feb 24, 2010, 01:06 AM
 
Meh.

This is the same problem as with Health Care.

They sell you stuff that's covering the usual, not the unusual.
You shouldn't even get insurance for little repairs. Insurance is supposed to cover catastrophic events, not regular maintenance items.

I don't know where people get the idea from that they need insurance for any and everything.

-t
     
Big Mac
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Feb 24, 2010, 01:14 AM
 
Three years before she passed away, my blessed grandmother got defrauded out of a survivorship life insurance policy that my grandparents had kept for around 16 years. She got bilked into selling it off by the very same agent who sold them the policy originally. The loss was to the tune of some $600,000.

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ort888
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Feb 24, 2010, 01:15 AM
 
Er... don't you have a deductible?

Look, I agree that insurance is a pretty much a complete racket in this country... but in what reality does it make sense to get your insurance company involved in something so trivial? All your doing is screwing yourself by putting a claim in the system.

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turtle777
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Feb 24, 2010, 01:17 AM
 
Originally Posted by ort888 View Post
Look, I agree that insurance is a pretty much a complete racket in this country...
I agree.

Easy solution: save some money and don't spend every freaking dollar that you earn.

People really need to learn not to live hand-to-mouth.

-t
     
turtle777
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Feb 24, 2010, 01:20 AM
 
Originally Posted by Big Mac View Post
Three years before she passed away, my blessed grandmother got defrauded out of a survivorship life insurance policy that my grandparents had kept for around 16 years. She got bilked into selling it off by the very same agent who sold them the policy originally. The loss was to the tune of some $600,000.
I'm having a hard time following the math on that insurance.

Survivorship sounds like something that's a pretty certain thing.

So he paid into the pool for 16 years with a potential pay-off of $ 600,000 ?
What was the monthly premium for that ? It must have been huge.

-t
     
Shaddim
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Feb 24, 2010, 01:22 AM
 
I'm glad I'm self-insured, I hate those companies. It's little more than gambling, and I don't care for the game.
"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."
- Thomas Paine
     
ort888
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Feb 24, 2010, 01:25 AM
 
My sink was just leaking as well, and I know jack squat about plumbing.

I bought a book on plumbing and spent about 3 hours figuring it out. HAd to take it apart and put it back together 3 times to get it right, but I eventually did. Total cost... about 25 bucks.

...and next time I have to fix my sink, I will know what I'm doing.

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torsoboy  (op)
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Feb 24, 2010, 03:24 AM
 
Originally Posted by turtle777 View Post
You shouldn't even get insurance for little repairs. Insurance is supposed to cover catastrophic events, not regular maintenance items.

I don't know where people get the idea from that they need insurance for any and everything.
Originally Posted by ort888 View Post
Er... don't you have a deductible?

Look, I agree that insurance is a pretty much a complete racket in this country... but in what reality does it make sense to get your insurance company involved in something so trivial? All your doing is screwing yourself by putting a claim in the system.
I'm not sure who these comments were directed at, but if they were directed at me, then you two probably don't understand what type of insurance I was talking about. When you buy a home, you generally get a "home warranty" that comes with it for the first year. It costs about $400-$600 a year, but it is a standard add-on when purchasing a home,and a lot of times the sellers pay for it. The purpose of the warranty/insurance is to cover the little (or big) things that you might encounter in the first year that you are in a new home. It is not only for "catastrophic events." And it doesn't become more expensive when you file a claim.

If we were talking about health insurance, then I agree. I have a very high deductible health plan and an HSA to cover our family. We used to be paying over $900 a month for a standard insurance policy, but now we pay less than half of that.

Originally Posted by Shaddim View Post
I'm glad I'm self-insured, I hate those companies. It's little more than gambling, and I don't care for the game.
If you live in the US, and Obamacare passes, you will be forced to buy into the system. Hurray!

Originally Posted by ort888 View Post
My sink was just leaking as well, and I know jack squat about plumbing.

I bought a book on plumbing and spent about 3 hours figuring it out. HAd to take it apart and put it back together 3 times to get it right, but I eventually did. Total cost... about 25 bucks.

...and next time I have to fix my sink, I will know what I'm doing.
Congratulations! I have fixed a few sinks in my life also, but since the deductible was supposed to be $60, and the faucet that needs replacing was more than $120, it didn't make sense to do it your way. But congratulations on your new skill! (also, I originally thought the problem was that a pipe connection was broken, and I figured it was worth $60 to pay a professional to do it right instead of me hacking something together. peace of mind is easily worth $60 to me.)
     
lexapro
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Feb 24, 2010, 03:33 AM
 
Hate insurance? Go read bstone's manifesto on how he had every insurance under the sun and they retroactively canceled on him. It's truly horrifying.

Here's the link:
http://forums.macnn.com/89/macnn-lou...r/#post3900800
( Last edited by lexapro; Feb 24, 2010 at 03:36 AM. Reason: link)
     
The Final Dakar
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Feb 24, 2010, 10:16 AM
 
Not sure manifesto is the word you want to be tossing around. Makes it sound like we're gonna here he crashed a car into Medicare building in a few months.
     
Laminar
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Feb 24, 2010, 10:49 AM
 
Originally Posted by lexapro View Post
Hate insurance? Go read bstone's manifesto on how he had every insurance under the sun and they retroactively canceled on him. It's truly horrifying.

Here's the link:
http://forums.macnn.com/89/macnn-lou...r/#post3900800
You promised!
     
SpaceMonkey
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Feb 24, 2010, 10:50 AM
 
Originally Posted by The Final Dakar View Post
Makes it sound like we're gonna here he crashed a car into Medicare building in a few months.
And then we'll hear him complain about his car insurance.

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The Final Dakar
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Feb 24, 2010, 10:57 AM
 
Hear. god dammit.
     
Person Man
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Feb 24, 2010, 11:05 AM
 
Originally Posted by torsoboy View Post
blah blah blah Obamacare blah blah blah
Must we turn EVERY thread into a P/L thread???
     
hayesk
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Feb 24, 2010, 11:51 AM
 
I'm still trying to figure out why the OP would call his insurance company about a leaky faucet. If the faucet flooded your kitchen and you needed to redo your kitchen, then it's time to call the insurance company.

If you don't know anyone who can fix a leaky faucet, then call a plumber. Why would you want your premiums to increase for life over something so trivial?
     
Laminar
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Feb 24, 2010, 12:34 PM
 
Originally Posted by hayesk View Post
I'm still trying to figure out why the OP would call his insurance company about a leaky faucet. If the faucet flooded your kitchen and you needed to redo your kitchen, then it's time to call the insurance company.

If you don't know anyone who can fix a leaky faucet, then call a plumber. Why would you want your premiums to increase for life over something so trivial?
When you buy a home, you generally get a "home warranty" that comes with it for the first year. It costs about $400-$600 a year, but it is a standard add-on when purchasing a home,and a lot of times the sellers pay for it. The purpose of the warranty/insurance is to cover the little (or big) things that you might encounter in the first year that you are in a new home. It is not only for "catastrophic events." And it doesn't become more expensive when you file a claim.
but since the deductible was supposed to be $60, and the faucet that needs replacing was more than $120, it didn't make sense to do it your way.
...
     
ort888
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Feb 24, 2010, 01:23 PM
 
Originally Posted by torsoboy View Post
I'm not sure who these comments were directed at, but if they were directed at me, then you two probably don't understand what type of insurance I was talking about. When you buy a home, you generally get a "home warranty" that comes with it for the first year. It costs about $400-$600 a year, but it is a standard add-on when purchasing a home,and a lot of times the sellers pay for it. The purpose of the warranty/insurance is to cover the little (or big) things that you might encounter in the first year that you are in a new home. It is not only for "catastrophic events." And it doesn't become more expensive when you file a claim.

If we were talking about health insurance, then I agree. I have a very high deductible health plan and an HSA to cover our family. We used to be paying over $900 a month for a standard insurance policy, but now we pay less than half of that.



If you live in the US, and Obamacare passes, you will be forced to buy into the system. Hurray!



Congratulations! I have fixed a few sinks in my life also, but since the deductible was supposed to be $60, and the faucet that needs replacing was more than $120, it didn't make sense to do it your way. But congratulations on your new skill! (also, I originally thought the problem was that a pipe connection was broken, and I figured it was worth $60 to pay a professional to do it right instead of me hacking something together. peace of mind is easily worth $60 to me.)
Okay, see... that's a whole different thing. A home warranty type of thing is a whole different deal. I passed on it myself, because I figured that it wouldn't be worth it... and in the first year our Air Conditioner broke ($3000) and a tree fell in our backyard. ($500) Good times.

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Oisín
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Feb 24, 2010, 04:11 PM
 
Originally Posted by torsoboy View Post
So I called the insurance company and said, "This policy says right on the front page, in bold, "We will replace covered items that fail when we determine they cannot be repaired, regardless of age, make, or model." So why is my contractor telling me that you wont replace it with the same model?" The insurance woman said, "Our policy does not state that we will replace it with the same make and model, it only says that we will replace it, regardless of its make or model."

Arrg! So basically, they will replace any make or model, with a crappy generic model of their choosing.
That’s pretty standard fare. It goes for pretty much all insurances, in my experience.

I deal almost uniquely with travel insurances, but even there, it’s the same. If you’re travelling, flying business class, and you miss your flight (for some reason that’s covered by the insurance), you can bet your ass your insurance won’t cover new business-class tickets for you. Regular monkey class is what you get. Similarly, if you have a car insurance that entitles you to a rental car while your own car is in the shop being repared, and you’re driving a Maserati, don’t expect the insurance to place a Maserati at your disposal—you’ll get a regular cheap-ass rental car of about the same size as your own car.

I wouldn’t have expected a generic home warranty to automatically just cover whatever make and model of something you have. Generic insurances cover and replace the function of the broken object, not its aesthetics. I wouldn’t lump this in with the scumbag insurance policies. If you want the aesthetics of your items to be covered, you buy product-specific warranties.

Not that there aren’t scumbag insurance policies. There are. And scumbag insurance policies. From experience, I know that most Swedish insurance companies have no qualms about selling very expensive car insurances (comprehensive, mechanic, rental—the works) for cars that aren’t eligible to any kind of coverage whatsoever. I didn’t read bstone’s thread now, but from what I can remember of it, that definitely counts as scumbaggish, too.
     
Mac Write
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Feb 24, 2010, 04:25 PM
 
If I had generic insurrance, my mac Pro needs replacing, they would replace it with a PC?
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Shaddim
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Feb 24, 2010, 05:42 PM
 
Originally Posted by Person Man View Post
Must we turn EVERY thread into a P/L thread???
Someone makes a thread about insurance in the Lounge, given the current political goings-on, and you think it won't turn this way? Are you serious?
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The Final Dakar
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Feb 24, 2010, 05:43 PM
 
Self-control is not this forum's strong-suit, particularly the PL denizens.
     
osiris
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Feb 24, 2010, 06:16 PM
 
I thought this was a thread about condom protection.
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SpaceMonkey
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Feb 24, 2010, 06:36 PM
 
Originally Posted by The Final Dakar View Post
Self-control is not this forum's strong-suit, particularly the PL denizens.
This thread is worse than Hitler.

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Oisín
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Feb 24, 2010, 07:02 PM
 
Originally Posted by Mac Write View Post
If I had generic insurrance, my mac Pro needs replacing, they would replace it with a PC?
They’d estimate an amount of money your Mac Pro is worth (in their eyes) and you’d get that amount of money. You can be almost certain it wouldn’t be enough to go out and buy a new Mac Pro.

But there are usually different rules for electronic consumer products specifically. If your super-fancy does-everything-including-making-coffee fridge or your designer titanium-steel-fibre-Superman racer bike got ruined in a fire, they’d be more likely to replace it with a generic fridge/bike of about the same type or size, rather than a similar luxury item. Computers, television sets, stereos, etc. are treated a bit differently, with more attention paid to the specific type of appliance in question.

[Disclaimer: this is most specifically about Scandinavian insurances, but from what I’ve been able to see of American insurances, it’s not that far off there, either]
     
macaddict0001
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Feb 24, 2010, 10:47 PM
 
Originally Posted by turtle777 View Post
Meh.

This is the same problem as with Health Care.

They sell you stuff that's covering the usual, not the unusual.
You shouldn't even get insurance for little repairs. Insurance is supposed to cover catastrophic events, not regular maintenance items.

I don't know where people get the idea from that they need insurance for any and everything.

-t
Amen

Originally Posted by torsoboy View Post
Blah Blah Gym membership, etc
The obvious solution is to just not pay them for march, What are they gonna do sue you for one months membership?
Originally Posted by Mac Write View Post
If I had generic insurrance, my mac Pro needs replacing, they would replace it with a PC?
They probably wouldn't pay out if its anything like aftermarket Extended warranty's on cars. Its not the repair shop's responsibility to get preapproval. Its yours and they will find an excuse not to cover you nearly all of the time. In the case of a computer you will probably have to call them many times, wait on hold at least .5 hour each time and eventually after a year they will give you enough money to buy a used one, but not enough to replace the expensive ram upgrades etc. And by then it will be obsolete anyway.

The fact of the matter is insurance companies are not there for some philanthropic grand design, they are not giving money away to help people. They are there to make money, just like you, me and everybody else. The only reasons to get insurance in my opinion is 1. if its legally required, 2. If it's something you cannot afford to lose.
     
torsoboy  (op)
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Feb 24, 2010, 11:54 PM
 
Originally Posted by macaddict0001 View Post
The obvious solution is to just not pay them for march, What are they gonna do sue you for one months membership?
They take it straight from my checking account.
     
Laminar
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Feb 24, 2010, 11:58 PM
 
Fake your own death.
     
Eriamjh
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Feb 25, 2010, 07:41 PM
 
I could use scumbag insurance. I know a lot of scumbags.

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NYK Ace
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Feb 25, 2010, 10:34 PM
 
Originally Posted by Oisín View Post
They’d estimate an amount of money your Mac Pro is worth (in their eyes) and you’d get that amount of money. You can be almost certain it wouldn’t be enough to go out and buy a new Mac Pro.
Actually, most home owners and renters policies in the US are Replacement Cost Value (unless you get an Actual Cash Value policy which many insurance companies won't even write). This means that they will reimburse you (minus your deductible) the cost to go out and buy the item at a retail store. If your item is no longer available (or an upgrade is made) you get the cost to buy the new item that replaced it at the retail level.

Example: Had a 15" PowerBook G4 1ghz which was stolen from my apartment. I bought it when it was new and was top of the line about a year or so prior. Insurance gave me enough to cover a brand new PowerBook G4 (whatever the new 15" model was at the time) minus my 500 deductible.
     
   
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