Hotel Charges $127 for 3 Bottles of Water (and other reasons to read the fine print)

Photo Credit: Thrillist.com

Thrillist.com recently ran this article about a hotel charging a customer $127 (or £75 GBP) for 3 bottles of San Pellegrino during a business meeting at their hotel bar.

Apparently the charge was thanks to the hotel's absurdly high per-person minimum charge policy. Although high, the charge wasn't what bothered the patron enough to email the hotel to complain and to tweet about it, adding #ripoff. His real problem was the sneaky hidden charge. He says the server never notified him of the minimum charge:

“I have no issue if they have a minimum charge, but they need to make it clear. It is the lack of transparency that I have a problem with."

This got us to thinking about reading the fine print.

Most people skim through contracts and Terms of Service for apps (we're looking at you, Android), doctors offices, drawing entries, social media profiles, and yes - even insurance policies - without reading the fine print.

We get it - reading the fine print isn't fun, it's not entertaining, and with so much legal jargon thrown in there, sometimes it's downright headache-inducing to understand. However, by skimming these contracts, we open ourselves up to expensive mistakes. Today it might be $127 for a few bottles of sparkling water. Tomorrow, it might be finding out that theft isn't covered under your auto insurance policy.

I wrote a blog post on Auto Insurance: Dirty Secrets In Your Policy when this happened to a friend earlier this year. She'd unfortunately bought car insurance online, and the carrier's quick-quote site had failed to inform her of the fine print detailing this gap.

Purchasing insurance online seems like a fast, convenient way to speed up an otherwise unappealing task. But it begs the question - why is the lowest quote so cheap? You get what you pay for, and insurance is no different.

An independent insurance agent, like a website quote calculator, does the legwork for you - shopping different carriers for the best price. This is where they differ: an agent makes sure you're getting the best coverage for that price. Meaning? You still don't have to read all of the fine print if you don't want to … But someone that you trust has, and will sum it up for you. Because the worst time to find out that you've been paying a monthly premium for a policy that doesn't cover much is when you file a claim.

Choosing an insurance company

While all companies should treat their customers fairly, honestly and ethically, it is especially important for an insurance company. You receive a promise for all your premium dollars, and you want to be sure the company you choose will fulfill that promise when the time comes.

How do you know if your insurance company has integrity and follows ethical principles?

If you have had the misfortune of experiencing a loss that resulted in an insurance claim, you may have some insight into the company’s culture:

• Did a representative establish contact with you promptly after being notified of your loss?
• How were you treated by the company’s claims representatives?
• If you received a settlement, was it fair and prompt?

When selecting your insurance company you can rely on some unbiased measurements. The National Association of Insurance Commissioners (NAIC) compiles complaint information from all states and produces online reports by company and by type of insurance (homeowners, auto, etc.) This allows you to compare and contrast complaint data for any insurance companies you research – go to NAIC.org and click on Consumer Information Source (CIS). You can also check your state’s department of insurance website, as many provide complaint data on companies operating in their states.

The Better Business Bureau assigns ratings to companies based on a number of factors, including complaints – just go to bbb.org, enter a location and search on the company name.

Of course, don’t rely solely on the complaint ratio or the complaint index of a company when making your choice. Coverages offered, financial condition, level of service and premium costs are very important when evaluating a company. Your local independent insurance agent is a good source for this information. You also may want to review independent third-party financial strength ratings assigned by A.M. Best Company.

Celebrate Corporate Compliance & Ethics Week May 4-10, 2014, a national event traditionally held the first full week in May. The observance highlights the importance of ethics and compliance in the workplace.

Submitted by Cincinnati Insurance