How to check an insurer’s complaint record online
Q. We have been shopping for a new homeowners insurance policy. One company is offering a rate that’s far below what other insurers would charge, but we had never heard of the company and wonder what kind of service we would get if we ever had to file a claim. How can we check out an insurer’s complaint record?
A. You’re wise to be wary. Too many homeowners and renters choose an unknown insurance company to save a few bucks on their annual premiums, only to find that they get subpar service — or none at all — if they later must file a claim.
The best way to check an insurer’s complaint record is to visit the free Consumer Information Source page online, operated by the National Association of Insurance Commissioners, naic.org. The association is comprised of top insurance regulators in all 50 states, and one of its key jobs is to publish annual statistics on consumer complaints filed against virtually every licensed insurer.
Using the Consumer Information Source page is easy. Simply type in the name of the company you want to research, the state where you live and the kind of insurance you want to purchase. The site separates its data into two primary categories: one for homeowners and drivers seeking property and casualty insurance, and the other for those seeking life, accident and health coverage.
The site will provide the insurer’s nationwide complaint statistics within moments. The key is to focus on the firm’s complaint index, which shows the ratio of the company’s U.S. market share of complaints to its U.S. market share of premiums for the specific type of policy you want to buy.
Using a ratio helps to put a firm’s complaint figures into perspective, regulators say, in part because it doesn’t penalize the biggest companies for drawing a larger number of complaints from their wider pool of customers.
Compare the individual company’s complaint index to the national median of 1.00. If the firm’s figure is lower than 1.00, there’s a good chance that you’ll be properly serviced if you must eventually make a claim. But if the company’s index is much higher than the 1.00 median, it’s a serious warning sign that you may be unhappy if you later ask for reimbursement for damages to your home or car.
It’s also helpful to look at the company’s complaint-trend record, which also appears on the free site, to see if the complaint record is rising or falling. Then supplement your background search on the new firm from your own state’s insurance department or consumer affairs department: Contact info can be found on the Web or under the state government heading in the white pages of your local phone book.
Q. I sold my condominium in August and moved into an apartment in another state. Last week, the accountant for the homeowners association that ran my old condo development sent me a letter stating that he had miscalculated my closing statement and
" Too many homeowners andrenaws choose an unknown nsuranore company a nave a few bucks Of, thee amual prerneerv. Gerdy to find tat they get subpar zeroth - Of none at eV — if they later must fie a Nem. The best way to chock an insurer's complaint record i.. to visit the tree Corcuner Infonnation &Atte page onkne• — Dond W Myers. Abag Real Etta*
that I still owe the HOA $495 for a special assessment that was levied earlier in the year to repave the development’s community sidewalks. Do I have to pay this bill?
A. Probably not. When a home sale is closed and everyone involved signs off on the deal, that’s it. There aren’t any doovers like we had on our elementary-school playgrounds.
You might want to voluntarily pay the bill if you agree with the accountant’s letter and would sleep better at night knowing that you hadn’t cheated the association out of $495. But legally, it was the accountant’s or closing agent’s responsibility — not yours — to ensure that the HOA was fully paid for any outstanding expenses you may have owed when title to the condo was transferred to the buyer.
The homeowners association could technically sue for the $495 in small-claims court, but it probably won’t bother. The time and expense of filing such a lawsuit likely would outweigh the money a judge might award, and the fact that you now live out of state and rent instead of own could make a judgment nearly impossible to collect.
Q. We spent $9,275 to remodel our kitchen in October. Can we deduct the cost on our next tax return?
A. Probably not. The Internal Revenue Service generally does not allow an immediate deduction for such improvements, unless they are considered a qualified fix-up expense to get the property sold or were incurred to accommodate a person who is disabled.
If the remodeling job doesn’t fit into either of those two categories, you can add the $9,275 in remodeling expenses to the tax basis of the house and thus reduce or eliminate any taxes that might be owed on the profit when you eventually sell the property.
Send questions to David Myers, P.O. Box 4405, Culver City, CA 90231-2960, and we’ll try to respond in a future column.