I've stayed out of this discussion till now. But I do have some meaningful things to add.
#1. Insurance companies are in business to make money. They have to make more on premiums than payouts. Small claims usually get paid without much fuss. Make a big claim and expect a big fight. It's happened to me 4x. Once it was tornado damage, twice it was cars that were worth more than they were willing to pay, the 4th was a boat that got destroyed on the rocks in a big wind storm. Each required a major fight. Had to go to small claims for the boat. Fine print of policy said it was only insured in a garage or boat house. Damage on the lake in a storm was not covered. WTF? That's like a car that's only insured in the garage but not on the road. But they never gave me a copy of the detailed policy and the judge agreed and made them pay. The average guy would NEVER fight like I did. Bottom line, expect a big fight with a big claim and take em to the mat!
#2 - Insurance scams are the norm. Everyone wants a new roof after a hail storm - even the ones that already needed a new roof! Got a dent in the fender backing up to a building, blame it on some other driver in a parking lot. Sump pump failed? Yup, need a an entire basement renovation and all new furniture. I hate that crap. But it's no wonder the insurance is skeptical and it's no wonder my premiums are so high.
#3 - Don't take safety standards and municipal by-laws for granted. If you have a big loss, they WILL go to extremes to disallow the claim. A big claim will precipitate a big inspection. One machine that doesn't meet code and they have you by the short curlies. Everyone can do what they need to do, but it's best to remember that you don't need insurance for small claims. But you really need insurance for big claims. See big fight above.
#4. Your insurance agent is NOT YOUR INSURANCE. Your agent sells policies, they don't settle claims. If you have a big claim, your agent will be on vaca in Bermuda. Don't trust your agent to tell you your stuff is covered. Ask for the fine print and READ IT. When it comes time to settle your big claim, you will be glad you know what your policy actually says.