"[Florida] A Cape Coral woman received a letter abruptly cancelling [sic]
her homeowner's insurance because of improper maintenance. The letter
referenced a tiny boarded up window that was broken for not even a week.
Something similar could just as easily happen to you."
Seems a neighborhood child cracked a small bathroom window with an errant
golf ball. The insurance company has "inspectors" that prowl the
neighborhoods looking for disrepair and, finding same, canceled the policy
before the homeowner could file a claim, thereby saving the company
approximately twelve dollars.
It's not the window. It's the chance to cancel a policy. I know different people
that have gotten cancelled for moss on the roof, a cracked window, and messy
yards. Cancelation was the first notice of a problem.
It sure does sound bogus. If the damage exceeded the deductible, the
insurance company would have to pay because the property was insured at the
time of the loss.
If this were not the case, auto insurance companies could cancel policies
as soon as their customer had an accident and never have to pay.
It IS bogus.
Nowhere in the story was paying for the broken window mentioned - that
conjecture was entirely my idea. Still, I came to that notion as the only
possible reason the insurance company could have for canceling the policy.
Upon reflection, I've come to the position that insanity could be involved.
$7 isn't the reason and obviously the insurance company doesn't care
about a small claim that almost certainly is below the deductible and
would never be filed. And they still would have to pay for it anyway,
because the damage ocurred while it was insured.
What they do care about is what general condition the property is
in. And if you read the rest of the article, they do talk about
shrubs being overgrown, lawn being patchy, etc. So, the insurance
company sends inspectors around periodically to take a quick look at
what condition the properties they are insuring are in. It's likely
that boarded up window, together with other signs, led them to believe
the property was higher risk. I'd like to see a pic of the property.
If you don't live in Florida you have no appreciation of the hassles of
homeowners' insurance here.
They are always fighting over rates etc. State Farm threatened to pull out
of Florida because they were not allowed to raise their rates. The state
actually sponsors a company called Citizens to provide insurance to those of
us who otherwise can't buy it elsewhere. Now the latest from this morning's
newspaper. It is hitting the fan again.
It is great living in the land of the hurricane. I don't know how the other
states on the Gulf of Mexico are doing, but that's our story.
SF isn't threatening, it IS pulling out. Travellers and other
insurance companies have cut back on their policies. Much of this slack
has been taken up by smaller companies. It should be REALLY interesting
to see what happens to these smaller companies the next time FL gets
It doesn't look like the other states are having quite the problems,
largely because FL has been much more aggressive on keeping rates low so
as not to offend Voters. Much the same way they slap around the snowbird
owners on their property taxes.
Fl seems to be having the same problems Washington has on many
occassions: an inability to understand that economics won't
automatically follow their whims.
Searching is half the fun: life is much more manageable when thought
of as a scavenger hunt as opposed to a surprise party.
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