[Jarwain]

They're capitalizing on the lack of trust people have for typical insurance companies. Even though a claim "should be" paid out based on the veracity of the claim, I think there's a population that doesn't trust the insurance company to operate this way.

[kateho]

I'd agree with that. There's a general feeling that people are surprised when their insurance companies pay out/cover some big cost (like rot), rather than it just being part of life. That says something about how much we trust existing insurance companies.