• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Dropped from HO Ins due to old roof?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

hrn111

Junior Member
I live in Indiana. My homeowners insurance is/was State Farm.

In 2008 we sustained roof damage (shingles only) from a tornado. We submitted a claim, and this was our ONE AND ONLY HO claim. Because our roof was already 20 years old, State Farm would only pay 50% of the estimated replacement cost. This is understandable. We couldn't afford at the time to provide the other 50% for a new roof. Now, June of 2010, State Farm sent us a letter saying they would no longer insure us. Reason? Old roof. Replace the roof, and they'll insure us.

Can they do that? If we had never submitted a claim, they would still be insuring our 22 yo roof. Granted, it's missing shingles on the back side, but they wouldn't have known that. How can they demand an individual to replace something that they only covered at 50%?

Thanks for your insight.
 


HomeGuru

Senior Member
I live in Indiana. My homeowners insurance is/was State Farm.

In 2008 we sustained roof damage (shingles only) from a tornado. We submitted a claim, and this was our ONE AND ONLY HO claim. Because our roof was already 20 years old, State Farm would only pay 50% of the estimated replacement cost. This is understandable. We couldn't afford at the time to provide the other 50% for a new roof. Now, June of 2010, State Farm sent us a letter saying they would no longer insure us. Reason? Old roof. Replace the roof, and they'll insure us.

Can they do that? If we had never submitted a claim, they would still be insuring our 22 yo roof. Granted, it's missing shingles on the back side, but they wouldn't have known that. How can they demand an individual to replace something that they only covered at 50%?

Thanks for your insight.



**A: yes they can do that. Replace the roof or try to find another insurance company.
 

Banned_Princess

Senior Member
I live in Indiana. My homeowners insurance is/was State Farm.

In 2008 we sustained roof damage (shingles only) from a tornado. We submitted a claim, and this was our ONE AND ONLY HO claim. Because our roof was already 20 years old, State Farm would only pay 50% of the estimated replacement cost. This is understandable. We couldn't afford at the time to provide the other 50% for a new roof. Now, June of 2010, State Farm sent us a letter saying they would no longer insure us. Reason? Old roof. Replace the roof, and they'll insure us.

Can they do that? If we had never submitted a claim, they would still be insuring our 22 yo roof. Granted, it's missing shingles on the back side, but they wouldn't have known that. How can they demand an individual to replace something that they only covered at 50%?

Thanks for your insight.
Yes they can do this and they have.

Other companies might also not insure or drop you due to your roofing issue.

I suggest you take out a loan or something. get that roof fixed.
 

moburkes

Senior Member
Why would you think that would be illegal?
They gave you money to repair the roof, and you didn't. If they didn't drop you they would be responsible for the repair costs of the next roof claim - which would likely be a larger claim.

The reason they dropped you is poor maintenance. A house with poor maintenance is at higher risk of larger claims. The fact that it's your one and only claim has nothing to do with the fact that you're not trying to maintain your house.
 

JustAPal00

Senior Member
I live in Indiana. My homeowners insurance is/was State Farm.

In 2008 we sustained roof damage (shingles only) from a tornado. We submitted a claim, and this was our ONE AND ONLY HO claim. Because our roof was already 20 years old, State Farm would only pay 50% of the estimated replacement cost. This is understandable. We couldn't afford at the time to provide the other 50% for a new roof. Now, June of 2010, State Farm sent us a letter saying they would no longer insure us. Reason? Old roof. Replace the roof, and they'll insure us.

Can they do that? If we had never submitted a claim, they would still be insuring our 22 yo roof. Granted, it's missing shingles on the back side, but they wouldn't have known that. How can they demand an individual to replace something that they only covered at 50%?

Thanks for your insight.
I inspect homes for insurance companies. Many companies now send people like me out randomly to look at the conditions of peoples homes. If I had come to your home and seen the missing shingles on your roof or other signs of age you would have received the same letter. If you want to insure your home then you have to keep up the maintenance. Why should the insurance company pay a claim for damage due to neglect?
 

sylviaedwards

Junior Member
It is important to see why insurance carrier dropped the policy holder? To me it looks like it was not properly maintained. However, one can always shop around and check for companies who have no drop feature.
 

tammy8

Senior Member
I think state FAIR plans will insure no matter condition (I don't work with this type of policies so I don't know the real guidelines, just heard they will insure pretty much any dump).

However the rates are OUTRAGEOUS!!!!!
 

Banned_Princess

Senior Member
I think state FAIR plans will insure no matter condition (I don't work with this type of policies so I don't know the real guidelines, just heard they will insure pretty much any dump).

However the rates are OUTRAGEOUS!!!!!
The FAIR plans' prices are outrageous, and their coverage is very minimum, and very specific.

But if you don't want to make the improvements or upgrades then thats your only option.
 

JustAPal00

Senior Member
I think state FAIR plans will insure no matter condition (I don't work with this type of policies so I don't know the real guidelines, just heard they will insure pretty much any dump).

However the rates are OUTRAGEOUS!!!!!
Even the FAIR plan has minimum requirements. What they will do in many cases is exclude items from coverage. I have done inspections for them in the past. From what I remember a good roof was required. A leaky roof can lead to so many other things. If the OP is so poor that he can't afford to fix the roof, there may be some government programs to help get the home into good enough condition that the FAIR plan will cover him. And yes it is expensive.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top