home owner insurance cancelled!!!

With most insurance companies there is no choice. Automotive policy's are written as six month policy's only. This gives the insurance company two "outs" a year in case you run over a bus full of pregnant nuns or rack up a handful of tickets / dui's / accidents.

Steve B.

Reply to
Steve B.
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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.

Reply to
Edwin Pawlowski

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

Reply to
Edwin Pawlowski

States differ. Both my automotive and home insurance has always been a 12 month policy.

Reply to
keith

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.

Reply to
Joshua Putnam

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

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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.

Reply to
Gideon

....

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"...

Reply to
Duane Bozarth

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.

Reply to
Sasha

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