Insurers Cheat Customers, Report Record Profits

Tedford Taylor

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In the wake of Hurricane Katrina, insurers reported their highest ever profit, $73 billion, up 49 percent from the previous year. With 60 million customers paying more than $50 billiion in premiums per year, homeowners are often surprised to find out that insurers won't pay the full cost of rebuilding their damaged or destroyed home. The insurance companies routinely refuse to pay market prices for homes and replacement contents, they use computer programs to cut payouts, they change policy coverage with no clear explanation, they ignore or alter engineering reports, and they sometimes ask their adjusters to lie to customers.