You paid your premiums. You did everything right. Then disaster struck — maybe a storm ripped your roof off, a pipe burst in your home, or a fire turned everything upside down. You called your insurance company, expecting help.
Instead, they sent you on a scavenger hunt.
They want receipts, estimates, photos, interviews, forms — and then more forms. They delay your claim, deny parts of it, or keep asking for “more information.” All while your home sits damaged and your life is on hold.
You’re not imagining it. Insurance companies really do make you jump through hoops — and it’s not by accident.
The Hidden Profit in Delay
Here’s what most people don’t realize: insurance companies profit from delaying your claim. The longer they keep your money, the more interest and investment income they earn — often referred to in the industry as the “float.”
Warren Buffett, who owns GEICO and other insurance companies through Berkshire Hathaway, has been very open about this strategy:
“Float is money that doesn’t belong to us but we get to invest for our benefit.”
— Warren Buffett, Berkshire Hathaway Shareholder Letter
When you pay your insurance premium, the company doesn’t immediately spend that money. They hold it, invest it, and let it grow. And when a claim comes in? Every day they don’t pay you is another day they do make money.
Real Numbers: How Much Do They Make?
In 2023, Berkshire Hathaway reported more than $165 billion in float — money held from policyholders like you that hadn’t yet been paid out in claims. That float generates billions of dollars in investment income every year.
Even if an insurance company breaks even on what it collects vs. what it pays in claims, it still wins — because the delay itself creates profit.
This is the part they never talk about in the commercials.
Delay, Deny, Defend — The Business Model Behind the Red Tape
Insurance companies train their adjusters to control payouts, not maximize fairness. The longer they stretch out your claim, the more likely you are to:
- Settle for less than you’re owed
- Miss an important deadline
- Accept their preferred contractor (who often works for them, not you)
- Give up altogether
This strategy even has a name in the legal world: “Delay, Deny, Defend.” It’s the standard operating procedure for many insurers — make things difficult enough, and people will settle for less.
And for companies driven by shareholder returns, that’s not just a tactic. It’s a business model.
Why It’s Legal — But Not Right
You might ask: How can they get away with this? The answer is: most people don’t fight back. They don’t know their rights. They assume the insurance company is acting fairly. Or they think hiring a lawyer will make things worse.
The truth? The earlier you get legal help, the harder it is for the insurance company to play games.
In Tennessee, we have laws designed to protect policyholders — including a bad faith statute that allows penalties when insurance companies unreasonably delay or deny valid claims. But they don’t pay unless they’re made to.
That’s where we come in.
What You Can Do If You’re Stuck in the Hoops
If your claim is dragging on, here’s what you should do right now:
- Document everything. Keep a written timeline. Save emails, letters, and phone logs.
- Know your policy. Understand what’s covered and where your rights are.
- Send a 60-day demand letter. This triggers Tennessee’s bad faith statute and sets a legal clock in motion.
- Call a Tennessee insurance lawyer. You don’t have to fight this alone.
Final Thought: This Isn’t About One Claim. It’s About a Broken System.
We’ve helped homeowners, renters, and small business owners across Tennessee who were worn down by red tape and fine print. Many of them thought they were the only ones. They weren’t.
It’s not personal. It’s policy. The hoops are part of a well-oiled strategy designed to protect profits — not people.
But you don’t have to play by their rules. You have rights. And we’re here to enforce them.
📞 Need Help With a Delayed or Denied Claim?
Call The Insurance Law Firm at (844) 4-A-CLAIM
Or schedule a free case review at www.insurancelawfirm.com
Let’s hold the insurance company accountable — and get your life back on track.
