Fidelity National Insurance Company recently had a $5 Million judgment against them for their claims handling. The problem: they did not pay a couple enough to replace the couple’s house. (See my prior posts on how much insurance you need.)
Fidelity offered about $180,000 less than what the house cost to rebuild. The jury found them responsible for this amount plus $5 million in punitive damages. Fidelity is going to appeal.
To me, this is the sad state of insurance these days. They insured a couple who’s house was destroyed by fire. They had two options: pay what was owed or fight the people who paid them premium. Unfortunately, more insurance companies are choosing to do what Fidelity did – not paying claims that they owe.