It is amazing what a half-second image can do.
Outrage from such a quick image—after an event like Superstorm Sandy, which created hundreds of heart-wrenching stories—is easy to invoke.
Allstate overlooked an image of Sheila and Dominic Traina's Sandy-destroyed home used in a recent television commercial praising its agents' response following the late October massive storm. And it's a shame, because many agents throughout the Northeast deserve to be thanked for helping customers while they likely had their own problems. It seemed to be a nice gesture from Allstate.
VISIT OUR SUPERSTORM SANDY LANDING PAGE HERE
Problem is, the couple isn't very happy with their home insurer, Allstate. And they have been letting the news know they aren't happy with the fact their home was in the ad, which they saw on Thanksgiving.
News coverage does not help assuage the public anger. Puns of "good hands" are too easy. A now-homeless and seemingly sweet Staten Island couple we can easily imagine as our aunt and uncle doesn't help quell the urge to blame someone for the tears in their eyes.
Allstate sent the Trainas a $10,000 check for their home of 40-plus years. The house was insured, the Trainas say, for $280,000. The structure that put a roof over them and four kids is now a pile of rubble. The check is surely not going to cover the rebuild.
That's where a lot of the news stories ended. I got calls and emails from friends and associates: "Did you see the Allstate story?"
I knew this had to be another unfortunate wind vs. water issue. Allstate says a majority of the damage was caused by flooding—or storm surge—both uncovered perils under a standard homeowners' policy.
In a Nov. 6 story, the Trainas told The New York Times they dropped flood insurance.
A statement emailed to PC360 by Allstate spokeswoman Laura Strykowski says the company has "continued to reach out to the Trainas to discuss their concerns, and are committed to resolving the matter in accordance with the policy they purchased."
People want to be outraged. They look for a bad guy. Insurance companies are easy bad guys, and they were made to be long before the Trainas.
The industry might deserve the moniker sometimes but, as a whole, it really doesn't. The insurance industry could pay an estimated $25 billion to policyholders for Sandy damage and there is no question that it will have the money to pay all claims it is contractually bound to pay. No one ever says that part.
Allstate says it has made nearly $1.1 billion in claims payments. The New York Department of Financial Services says as of Jan. 13 Allstate made payments on 68,440 claims. Of those, 50,676 claims have been closed.
According to the DFS, 378 policyholders in New York have filed a complaint against Allstate, which works out to 0.47 percent of Allstate's claims received.
I'm not saying 378 aren't a lot, or that I don't feel terrible for the Trainas. I also wouldn't go so far as to say dealing with insurers after Sandy has been a complete pleasure. I've heard some horror stories, and I know many, many people are waiting for money.
It also wouldn't be right for me to go on without acknowledging Allstate's blunder. A half-second, partial image or not, Allstate ad-makers have got to know better. These are delicate times of scapegoat hunting.
The ad "does not reference [the Trainas] as customers or in any way imply they are satisfied with the status of their claim," Strykowski writes.
I can't debate the first part but the second part is arguable. Right or wrong, isn't that exactly what a majority of viewers implied?
Strykowski adds, "We regret any concern this advertisement may have caused the Trainas and images of their home will not be included in Allstate's advertising."
The Trainas tell news outlets they are lawyering up. Parts of me root for them. You just don't want to see what happened to them happen to anyone. Maybe Allstate made a mistake, flagrant or otherwise. I mean, dang—flood or no flood—just $10,000?
Other parts of me wonders if this is another awful case of policy language being policy language. Words on a signed contract are hard to fight. Ask those who tried to fight them after Hurricane Katrina.
I wonder when homeowners will buy flood insurance, especially when they are so close to the water, and especially when these types of weather events seem to be happening more and more.
There are larger issues here, of course. Flood insurance from the government is no picnic either. We know about funding and the NFIP's inadequate rates. And even with the coverage, the Trainas might still be waiting for a check and haggling over how much it should be.
But the alternative is worse.
P.S. I did some searching, and insurers have posted Sandy-related stories from agents on various social media sites. I found this one, from Mike Short's office in Long Valley, N.J. particularly good. No big production value. No Dennis Haysbert narration. Just a guy making his living in insurance telling a story.
Watch it HERE
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.