According to Ross Buchmueller, when the financial crisis hit, specialist insurance carriers' market share began to erode. Consumers trying to cut expenses turned to cheaper homeowner's policies from standard carriers.
However, when Hurricane Sandy roared up the East Coast, some who lost homes and possessions found that economizing might have been penny wise but pound foolish. By February, insurance agents were seeing an uptick in inquiries about specialty coverage.
Buchmueller, president and CEO of Privilege Underwriters Inc. and founding member of PURE (Privilege Underwriters Reciprocal Exchange), said the superstorm highlighted "the difference in being with a standard household carrier versus being with a specialist."
Rosalyn Binday, president of Advocate Brokerage in Scarsdale, N.Y., said that after Sandy there were distinct differences in how client claims were covered by specialists and by standard carriers. "Neighbors would have coverage where their carrier didn't, and [homeowners] were becoming aware that there's a world of difference from company to company."
She recalled one instance in which two houses, one insured by PURE and one by a standard insurer, experienced severe damage from a tree limb crashing through the roof. While the PURE adjuster worked quickly and settled the claim "very fairly," the other company provided its clients with "a very unpleasant experience every step of the way." It disagreed with valuations, challenged choices of people to repair the damage, and their clients "felt they were treated as if they were cheating."
Then there's the case of the raccoon: A wayward raccoon had taken up residence in the homeowner's attic, unbeknownst to the family, and "lived there merrily until it collapsed and landed in the living room."
Under normal circumstances, a wild raccoon indoors can do a lot of damage, but this was extraordinary. The raccoon, "frenzied, hysterical and hurt, knocked over every lamp. It bled on couches and Oriental rugs, and flung its body into doors and windows."
