home owner insurance cancelled!!!

Page 2 of 4  
miamicuse wrote:

Unfortunately, they can. Not knowing the circumstances of the claims, can't judge on them. The one thing you can try is to contact the State Insurance Commissioner or whatever the office is called in FL. Probably will not find a cause for direct redress but you can certainly inform them and they do keep statistics and monitor for abusive patterns. A copy of the letter to the company <might> also have some effect, but it should be done on general principles anyway.
Unfortunately, in FL and the whole Gulf Coast just now things are tough for the insurance companies and they're looking for anyway possible to keep from going under. Insurance is going to be hard to get and very expensive there for a long time, I suspect.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Yes, they can. They paid your claim and fulfilled their legal obligation. Since you are not profitable, they made a business decision to drop you.
Outrageous is a matter of opinion. You think they are because they don't want you any more. They think you are because you made certain claims. I don't know if the decision is based on the dollar amount, frequency, or the type of claim you made.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

HOwever the original poster is going to find out real fast that every company he contacts to buy insurance from will ask him about his claim history ...and they will check it... AND IF they deem to take the risk and actually insure him the Bill will be pretty big....

LOL.... I was suprised that the Company just dropped him...I would have thought that they would have renewed the policy but at a premium rate that was truely outrageous.....
They think you are because you made certain claims. I

both ask my claims history... BUT with all the claims paid out in Florida just for the last years "windy" season I guess Florida is not the land of pleasent living as far as Insurance Companies are concerned.....
Bob G.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
_remove snipped-for-privacy@adelphia.net says...

Many insurance companies simply don't have rate structures for high- risk customers, so they don't have the option of renewing the policy at a ridiculous premium, they can either renew it at a rate they expect to be unprofitable, or they can decline to renew the policy. So they non-renew the policy, knowing most people will be able to find insurance with a high-risk company at a premium that reflects their loss history.
Now, it may seem outrageous to drop the policy over paying out $4200 in the last six years, but statistically, people who have losses that frequently often continue to have losses that frequently, so the company should expect to continue paying out $700/year to the customer, plus whatever it costs each time to investigate, process, and settle the loss.
Personally, it sounds to me like the original poster's insurance agent should have provided a bit more education, or else there never would have been a claim filed over only $1200. Carry the highest deductible you can afford, homeowner's insurance isn't an HMO for your house, it's for catastrophic losses you really can't afford yourself.
--
snipped-for-privacy@phred.org is Joshua Putnam
<http://www.phred.org/~josh/
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Just jumping in here with my 2 cents worth...
Once an insurace company starts selling you insurance I don't think that they should be allowed to simply cancel it at any time. When they agree to sell you insurance they should do a background check and determine the risk. If you ever have a claim they should then be able to decided at that time whether or not they wish to continue to provide coverage once the claim is settled.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

opportunity a year to cancel your insurance and this would be at policy renewal time. Steve B.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Sometimes they do and the buyers often think this is an invasion of privacy.
The companies do not cancel mid term, but allow you the remainder of the policy time, they just do no renew. Just like your barber can tell you to go elsewhere if he does not like you.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Is it possible that the insurance company for the original poster did a bit of such additional "background checking" - due to changes in industry practices or due to the two claims? As one example, they may have discovered that in addition to his two claims, he has a pretty crappy credit rating.
Don't yell at me, because I don't make the rules or necessarily agree with them, but insurance companies have determined that pool credit ratings correllate very well with probability of filing claims.
The important point, which my father used to emphasize, is the fact that it doesn't do a lot of good getting worked up because you think the system is unfair. Accept the rules, which you can't change, and figure out what works best for you. In my case, I'm not about to pay for insurance which I'm afraid to use and I'm also not interested in getting my policy dropped. So I take very, very high deductibles.
Gideon
============= Noozer wrote in message ...

Just jumping in here with my 2 cents worth...
Once an insurace company starts selling you insurance I don't think that they should be allowed to simply cancel it at any time. When they agree to sell you insurance they should do a background check and determine the risk. If you ever have a claim they should then be able to decided at that time whether or not they wish to continue to provide coverage once the claim is settled.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Gideon wrote:

Of course it's possible...is it likely is another question.
More than likely simply an automated risk/payout ratio was flagged and generated the non-renewal notice "never touched by humnan hands"...
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Many insurance companies do not have very high deductible. I have AllState and the highest deductible they allow me to take is $2K. I wanted $25K deductible but they don't have this option. I just wonder why.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Insurance companies are masters of statistics. They probably know that most of the people that would choose the 25k deductible would take the lower rate but would not have the 25k to back it up if needed.
Banks would also step in if they are financing the home demanding a lower deducible, thus lower exposure to the financial stability of the homeowner
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@audible.com says...

Many mortgage companies won't accept a deductible over $1,000, or sometimes 1% of value. Few companies bother marketing policies that aren't acceptable to lienholders.
--
snipped-for-privacy@phred.org is Joshua Putnam
<http://www.phred.org/~josh/
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
My mortgage is less then 15% of my home value. My lender also never mentioned any restrictions they imply on deductibles. The only requirement was that insurance coverage must be not less then mortgage amount.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

They've decided that you're too high a risk and chosen not to keep you as a customer. Homeowner's insurance is for _major_ losses - why would you bother making a claim for $1200??? Even for $3000, I'm not sure I'd make a claim.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Yes, they can, and yes, they should. Insurance is supposed to cover you for catastrophic losses, So that a major disaster doesn't wipe out your life. It's not supposed to be a home-maintenance program, and it's not supposed to be a get-out-of-reality free card.
--Goedjn
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Goedjn wrote:

See my other responses re: underwiting policies of specific coverages and deductibles at premiums set by the underwriter.
If they underwrite for a given level of protection, it was the underwriter who set the premium was based on their estimates of the risk. The insured is simply expecting the other half of the contract be fulfilled (assuming of course, no deceipt on the part of the insured).
That many insurers then breach that trust ex post facto is a different issue.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

If the insurer pays, then there is no breach of contract, and that's the only reasonable "trust" there is to be broken.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Goedjn wrote:

It's certainly "reasonable trust" in my opinion that when a contract is entered willingly by both parties and there has been no breach of that contract that there shouldn't be any reason to expect furtherance of the supposedly mutally beneficial relationship to continue.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@mail.uri.edu says...

Indeed, that's one good reason homeowners policies are generally annual policies, and auto policies are often only six months -- the company can meet all its obligations under the contract and then decline to enter into a new contract covering those risks for another policy term. The company has done everything it promised to, and provided every service the customer paid for. They just don't want to sell those services again when, statistically, the customer has become a higher-risk gamble.
It's nothing personal against the one customer, it's exceedingly impersonal actuarial statistics. As a class, people who have filed one claim in the past three years are more likely to file a claim next year than people who have not filed any claims in the last three years. People who have filed two claims are much more likely to file a new claim than people who have filed only one claim. If a company has a loss surcharge in place that's steep enough to cover this increased risk, then they have no need to drop the higher-risk customers.
If they don't have a large enough loss surcharge to cover the added risk, then either they drop the higher-risk customers, or they sell their services below cost and make it up with higher premiums for lower-risk customers.
--
snipped-for-privacy@phred.org is Joshua Putnam
<http://www.phred.org/~josh/
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Joshua Putnam wrote: ....

Actually, I strongly suspect the reason is that the customer only chooses to pay six months' premium in order to
a) Hold on to the money for a while longer, b) Can't afford any longer term at the time, or c) Has to show proof of insurance to get registration and has every intention of dropping the policy.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Site Timeline

Related Threads

    HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.