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Home insurers earn millions as delayed claims extend investment time
A Consumer Federation of America and Weiss Ratings analysis estimates the industry earns about $8.8 million per day in extra investment income when claim payments are delayed.
Home insurance disputes can leave households waiting for payouts after disasters, while insurers continue generating investment income on money they have not yet paid out. An analysis from the Consumer Federation of America and Weiss Ratings estimates home insurers collectively earn about $8.8 million in additional investment income for every day claim payments are delayed.
The outlet notes that a one-week delay could translate to roughly $61.6 million in added investment income for the industry. For homeowners already dealing with major damage, each extra day can make recovery harder.
Home insurers deny that they deliberately slow claims to profit from the investment returns. However, according to Jennifer Taylor, a public adjuster and founder and CEO of Claim Ready, claim timelines can vary widely based on damage size and complexity.
Taylor said smaller, straightforward claims are often resolved within a few weeks to a few months, while large losses can take 18 to 24 months. She added that the process can include repeated inspections, paperwork, repair work, approvals, and building checks before homeowners see the claim through.