Home Owners Insurance

[lyles]

What is the name of your state? California
We discoverd our carpet was wet around our shower, called plumer out he said our liner or pan was leaking in our shower and needed repalced. Called insurance agent and he told me that if we filed on our homeowner insurance that they would cancel us next year. He said because of this mold situation I guess. We have lived in this house 30 yrs and paid homeowners insurance on it all this time and never used it until now and he tells us if we file a clame they will cancel us. Is this a threat ?Can they do this? We do not have the money to fix this problem and is just getting worse as all hot water is running out all the time if we don't turn the water off. We will have the house paid off the last of next year. should we go ahead and file. Please advise.
Thanks,
Lyles

 

[JETX]

My suggestion is to go ahead and file. Worry about next year then.

 

[tammy8]

Water claims are a serious problem to insurance companies. Somwtimes they are true accidents but mostly (not saying yours is) lack of maintaince. If you do file the claim and get cancelled I doubt any AAA company would touch your property to insure. Then IF your mortgage company offers it, it is outrageous and if not and your state offers insurance through a "pool" the rates are also outrageous.

How much dollar wise is the damage?

 

[markkelson]

This is beside your question but we had our shower leak just as you describe and it only needed caulk around the joints between the shower pan (plastic base) and the tile. Appearently it got old after 10 years, had small cracks that you can barely see in the grout, but could leak a lot of water enough to soak the carpet after two people used it. I did not pay a plumber but would bet they could find a significant problem given the chance since I am sure they are paid for the work they do (and caulking is too easy since you can do it your self).

 

[I AM ALWAYS LIABLE]

What is the name of your state? California
We discoverd our carpet was wet around our shower, called plumer out he said our liner or pan was leaking in our shower and needed repalced. Called insurance agent and he told me that if we filed on our homeowner insurance that they would cancel us next year. He said because of this mold situation I guess. We have lived in this house 30 yrs and paid homeowners insurance on it all this time and never used it until now and he tells us if we file a clame they will cancel us. Is this a threat ?Can they do this? We do not have the money to fix this problem and is just getting worse as all hot water is running out all the time if we don't turn the water off. We will have the house paid off the last of next year. should we go ahead and file. Please advise.
Thanks,
Lyles

My response:

Having the same insurance for 30 years, without a claim, is not a valid argument. The fact is, you have received "Protection" for all of those years, and that's what insurance companies sell.

Also, insurance companies do not insure "maintenance" items. A shower pan wears out over time. As such, it is a maintenance problem - - not an immediate "burst" of a pipe, for example. The plain meaning of the exclusion in your policy is that the insurer will not cover slow-moving disintegration - - and a shower pan that wears out is a "slow-moving disintegration".

Typically excluded are loss or damage caused by:

-- "Faulty, inadequate or defective planning, zoning, development surveying, siting, design, specifications, workmanship, repair construction, renovation, remodeling, grading compaction, maintenance repair materials or maintenance of part or all of any property . . ." [Chadwick v. Fire Ins. Exch. 17 Cal.App.4th at 1124-1125, 21 Cal.Rptr.2d at 879]

So, if you make your claim, not only will your policy be canceled, but also under the terms of your policy, the claim will be denied on the grounds that I have just specified.

IAAL

 

[BennyDi]

IAAL responds:
My response:

Having the same insurance for 30 years, without a claim, is not a valid argument. The fact is, you have received "Protection" for all of those years, and that's what insurance companies sell.

Also, insurance companies do not insure "maintenance" items. A shower pan wears out over time. As such, it is a maintenance problem - - not an immediate "burst" of a pipe, for example. The plain meaning of the exclusion in your policy is that the insurer will not cover slow-moving disintegration - - and a shower pan that wears out is a "slow-moving disintegration".

Typically excluded are loss or damage caused by:

-- "Faulty, inadequate or defective planning, zoning, development surveying, siting, design, specifications, workmanship, repair construction, renovation, remodeling, grading compaction, maintenance repair materials or maintenance of part or all of any property . . ." [Chadwick v. Fire Ins. Exch. 17 Cal.App.4th at 1124-1125, 21 Cal.Rptr.2d at 879]

So, if you make your claim, not only will your policy be canceled, but also under the terms of your policy, the claim will be denied on the grounds that I have just specified.

IAAL

My response:

EXCELLENT response!!

I would like to add......the insurance company should give you advance notice of any impending cancellation. When notice of impending cancellation is received, SHOP AROUND!! There are companies that will pick you up with only one prior claim. The premium might be a little higher.