home owner insurance cancelled!!!

Page 4 of 4  
says...


The situation varies from state to state, but insurance companies generally aren't free to just impose a higher rate.
Rates have to be reviewed and/or approved by the state, often requiring voluminous statistical documentation, hundreds of hours of staff time, lobbying, etc. In a business as marginally profitable as homeowners insurance, it may not make any economic sense for a company to spend hundreds of thousands of dollars for the right to continue servicing a fairly small number of customers, especially when there are high-risk insurance companies who specialize in serving this market.
Another thing the high-risk companies have going for them is more restrictive policies. Getting dropped because you filed too many theft claims? No problem, we'll give you a policy that doesn't cover theft. Too many storm claims? How about we exclude coverage for your roof? State Insurance Commissioner doesn't like policies that are so restrictive? OK, we'll operate somewhere else and you can buy our policies from a surplus-lines brokerage....
--
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

Ah, but here's the rub. Very often the homeowner is NOT free to move to another insurance company. With the advent of the CLUE database (Comprehensive Loss Underwriting Exchange, the hapless homeowner is unlikely to get insurance at another company, or at the least, at much higher premiums.
After reading many of the horror stories about people getting their insurance cancelled after making claims, I've done what has already been suggested here and that is to raise my deductable as high as I can stand and consider my policy to be catastrophic loss protection.
BTW you can order a copy of your CLUE report and see what it says about your claims history.
Here's a link explaining how. http://www.insurance.wa.gov/factsheets/factsheet_detail.asp?FctShtRcdNum 
dickm
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Sure, why not? If the customer is not going to be profitable, it is time to move on. Sometimes the customer want services that we are not equipped to provide or do not want to make the investment in equipment to provide them. You don't bail out mid-purchase order but you do give notice that you no longer want to do business. Sometimes they come back and are willing to pay more, other times they find another supplier.

They advertise that you will be in good hands withthem, but in reality, they are a business and us mathematical formula to calculate how much profit you will give them. I guess that is a bit devious, but in spite of warm and fuzzy TV ads, they are cold, calculating, financial organizations determined to make a profit.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Edwin Pawlowski wrote: ....

That's no different than any other business...they just use a different formula.

I don't find that part devious at all (being an engineer who dealt w/ probabilistic tools extensively, I suppose aids in that I understand their actuarial computations very well)...

That I expect as well...
they are cold, calculating, financial organizations determined

The last I don't have a direct problem with either. I do find their manner of trying to ensure it as being a problem in some instances. Primarily the ex post facto cancellation of policies that may not actually have really been all that unprofitable if analyzed individually. For example, the example given here was for dimes relatively in claims for what had to have been pretty high-premium coverage.
It was interesting to see the fella' who was an agent in Slidell or may Mobile, I don't recall who had just lost his entire household. He noted to the interviewer that his viewpoint on the treatment of his clients by both him and the company he represented had changed markedly.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Well, the person in question can always form a mutual-benefit society with similarly afflicted people, and insure each other... see how they like it from the other side of the equation.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Goedjn wrote:

In acutality, for the type of claim which was under discussion, that would undoubtedly work well...
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Wed, 31 Aug 2005 22:25:08 -0400, "miamicuse"

Contact the office of your state insurance commissioner and check out your venues of recourse. Some states have guidelines relative to the operations on those ins co's in your state and 'codes' for conduct. give'em a call..
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
miamicuse wrote:

Unless you're one who just loves the sense of false security received from having that local good guy agent/buddy/pal/guy you started with, etc, I find it worthwhile to shop for both home & auto insurance every couple of years because they continually raise their rates onced you're a customer.
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.