Home policy being cancelled, looking for options

[Subjection1]

What is the name of your state? WI

After recently being switched to a certain insurance company by my agent due to it having a better premium (and then me paying for a year of coverage), my homeowners policy has been cancelled by the company. They had sent an insurance underwriter to my house after I paid my premium to do an inspection and he didn't like that the ridge cap shingles on my roof were curling, and that there was a minor amount of moss in places. Anyway, I got a cancellation letter in the mail simply telling me that my policy would be cancelled as of 1 month from the date on the letter, and they didn't give me any options to correct the problems. The letter also said that they are required by the laws of my state to enclose what my rights are regarding this action and that a form showing what those rights are were enclosed with the letter. It wasn't. I emailed my agent about it and she simply said I could file a complaint against the company, and attached a form that may or may not have been the "rights" they were talking about. It wasn't shown on the form, but I'm assuming that's what it was. Agent didn't explain it.

Since I'm a homeowner of 25 years with continuous insurance coverage that's always been paid on time with no lapses, and I've never filed a claim in all that time, and I have an excellent credit rating around 800, I'm surprised that I'm suddenly being treated like a deadbeat. I can understand if I had been notified of a problem and given a chance to correct it, but not just outright cancelled with no chance to make things right.

What I'd like to ask for is advice on how to deal with the company to allow me to correct the problems. Perhaps make exclusions to my policy so that certain things such as leaks or roof rotting would be only actual cash value coverage instead of replacement value. Do insurance companies do that for people who have a good established record? I'm asking here because I already emailed my ideas to my agent, but she's being totally unresponsive, even though I still have an auto insurance policy with her. I've looked into switching insurance companies but keep getting rejected because my roof doesn't pass inspection. Yes, I know that getting the roof replaced would be the thing to do, but the roofing contractors in my area are all booked for this year and the soonest they could do my house would be next Spring. By then, my insurance will have lapsed (it ends on July 26th), and I've been told that roofers won't even work on homes that don't carry current liability insurance. So, what I'd really like at this point is enough time to get the roof replaced without losing my insurance. A modified policy to exclude hail damage or leaks would be acceptable to me if it meant being covered for everything else. Are there companies who do that? Can someone point me to one?

 

[quincy]

What agent?

 

[Subjection1]

What agent?

The one that handles my auto and (soon to end) home policies. I am surprised she's not eager to work with me to resolve this. I always thought the agent was the mediator between the customer and the company, but all correspondence with me regarding the cancellation has been directly from the insurance company.
Am I allowed to name the insurance company here?

 

[quincy]

The one that handles my auto and (soon to end) home policies.
Am I allowed to name the insurance company here?

Please don’t name the insurance company. Thanks.

Is the reason that your insurance agent recommended you change insurance companies because your agent changed insurance companies?

Every insurance company will do their own evaluation of the property to be insured. A homeowners policy originating years ago may not reassess the insured property but any new company most certainly will assess the condition of the property before writing a policy.

If there is a condition that requires repair/replacement/correction, that specific condition generally will be excluded from coverage until repair/replacement/correction. For example, when we purchased our house, our insurer would not cover house or roof damage caused by an overhanging tree. We needed to trim the tree to remove the policy exclusion.

I am thinking that your insurance agent did not tell you all that you needed to know before switching you to the new company, which is a failure on her part. You should contact her for a policy extension and the addition of a temporary policy exclusion while repairs are completed.

Or you could find another agent.

 

[Subjection1]

Please don’t name the insurance company. Thanks.

Is the reason that your insurance agent recommended you change insurance companies because your agent changed insurance companies?

Every insurance company will do their own evaluation of the property to be insured. A homeowners policy originating years ago may not reassess the insured property but any new company most certainly will assess the condition of the property before writing a policy.

If there is a condition that requires repair/replacement/correction, that specific condition generally will be excluded from coverage until repair/replacement/correction. For example, when we purchased our house, our insurer would not cover house or roof damage caused by an overhanging tree. We needed to trim the tree to remove the policy exclusion.

I am thinking that your insurance agent did not tell you all that you needed to know before switching you to the new company, which is a failure on her part. You should contact her for a policy extension and the addition
of a temporary policy exclusion while repairs are completed.

Or you could find another agent.

I'm thinking you are correct about finding another agent. I emailed her last week about my ideas of her getting the company to add exclusions so that my coverage can continue, but all I'm getting from her is the silent treatment. Since the different agents for this company all work in the same building, it's safe to assume they're all on good terms with each other and would defend one another if I went to a different agent and asked them to take my policy from their co-worker on the idea that they aren't doing their job.
And you're right about her not telling me all I needed to know before switching companies. She said she manages policies for about 15 different companies and can switch me from one to another easily. That started happening several years ago when I simply wrote to her and asked what my premium would be if I upped my deductible from $500 to $1000 or higher. Instead of answering that question, she said she could get me a better rate with a different company with the same $500 deductible. So I went with that. Then after about 3 years, they raised my premium by quite a bit and I told my agent that I couldn't keep up with those kinds of increases, so she told me she could switch me back to the company I had before because they had a much better rate now. So I went with that, paid for a year of coverage, and then got a cancellation notice about a month later. Now I've written ideas about exclusions to her and asked if she could work with the company to make that happen, but she's not even replying to me. I wouldn't mind just going to a different company and agent altogether (and cancelling my car insurance with my current agent at the same time), but I keep getting rejected for consideration.

 

[quincy]

I'm thinking you are correct about finding another agent. I emailed her last week about my ideas of her getting the company to add exclusions so that my coverage can continue, but all I'm getting from her is the silent treatment. Since the different agents for this company all work in the same building, it's safe to assume they're all on good terms with each other and would defend one another if I went to a different agent and asked them to take my policy from their co-worker on the idea that they aren't doing their job.
And you're right about her not telling me all I needed to know before switching companies. She said she manages policies for about 15 different companies and can switch me from one to another easily. That started happening several years ago when I simply wrote to her and asked what my premium would be if I upped my deductible from $500 to $1000 or higher. Instead of answering that question, she said she could get me a better rate with a different company with the same $500 deductible. So I went with that. Then after about 3 years, they raised my premium by quite a bit and I told my agent that I couldn't keep up with those kinds of increases, so she told me she could switch me back to the company I had before because they had a much better rate now. So I went with that, paid for a year of coverage, and then got a cancellation notice about a month later. Now I've written ideas about exclusions to her and asked if she could work with the company to make that happen, but she's not even replying to me. I wouldn't mind just going to a different company and agent altogether (and cancelling my car insurance with my current agent at the same time), but I keep getting rejected for consideration.

Yup. Time for a new insurance company and a new insurance agent.

You probably will still need to repair your roof - and keep your fingers crossed while the roof is excluded from coverage during the repair process - but your current agent appears to be accumulating accounts while ignoring the needs of the accounts already held.

 

[Subjection1]

Yup. Time for a new insurance company and a new insurance agent.

You probably will still need to repair your roof - and keep your fingers crossed while the roof is excluded from coverage during the repair process - but your current agent appears to be accumulating accounts while ignoring the needs of the accounts already held.

That's if even have insurance at the time the roof is being repaired. Current policy will be gone on July 26th, and I'm having no luck getting started with a different company/agent. I'm thinking my most likely route is a different agent with the same company, but not sure how that would play out.

 

[quincy]

That's if even have insurance at the time the roof is being repaired. Current policy will be gone on July 26th, and I'm having no luck getting started with a different company/agent. I'm thinking my most likely route is a different agent with the same company, but not sure how that would play out.

You fortunately are in Wisconsin, not Florida. You should be able to find a new insurance company and a new insurance agent. Wisconsin experiences storms but rarely are there the devastating disasters in Wisconsin that lead to high premiums elsewhere.

The company your current agent is with is not one I personally would go with again. You want to go with an agent who will quickly respond to your queries. Although it could be there are other agents at the company who would be better, it appears that the current company is more interested in collecting accounts than providing service.

 

[adjusterjack]

Subjection1 said:
I always thought the agent was the mediator between the customer and the company

You are wrong, as is most of the insurance buying consumer. The agent sells the policies. The insurance companies make the rules that the agent has to follow.

Subjection1 said:
Am I allowed to name the insurance company here?

It wouldn't make a difference. The entire insurance industry is in crisis. I'm sure you have no sympathy for insurance companies losing money but the fact remains that they are and they can't raise rates fast enough to keep up so they are cancelling policies that don't meet stricter underwriting requirements.

All you can do is shop around. But this time you aren't looking for rates you are looking for coverage and there will be other companies that might write your insurance but there will be larger deductibles and ACV on roofs. ACV on roofs mean that depreciation would be applied. When the wind blows off your old worn out roof you will be covered for only a fraction of the cost of a reroof.

You can get a better idea of what is happening to everybody if you run an internet search for roof insurance claims.

 

[Subjection1]

You fortunately are in Wisconsin, not Florida. You should be able to find a new insurance company and a new insurance agent. Wisconsin experiences storms but rarely are there the devastating disasters in Wisconsin that lead to high premiums elsewhere.

The company your current agent is with is not one I personally would go with again. You want to go with an agent who will quickly respond to your queries. Although it could be there are other agents at the company who would be better, it appears that the current company is more interested in collecting accounts than providing service.

The company itself is rated as being in the top tier of companies, so I'd hate to lose being with it. My agent isn't exactly top tier though.

 

[Subjection1]

You are wrong, as is most of the insurance buying consumer. The agent sells the policies. The insurance companies make the rules that the agent has to follow.

Does the agent have any special authority in negotiating on behalf of the customer with the company to make exceptions to the rules, or to put special exclusions into a policy to accomodate a customer they would rather not lose (such as one who's had insurance for 25 years and has never filed a claim?)

It wouldn't make a difference. The entire insurance industry is in crisis. I'm sure you have no sympathy for insurance companies losing money but the fact remains that they are and they can't raise rates fast enough to keep up so they are cancelling policies that don't meet stricter underwriting requirements.

If they're losing money, they shouldn't cancel people who have been paying in and not taking anything out. But I understand what you mean. My house was built in 1886, so I guess there's things about it to not like.

All you can do is shop around. But this time you aren't looking for rates you are looking for coverage and there will be other companies that might write your insurance but there will be larger deductibles and ACV on roofs. ACV on roofs mean that depreciation would be applied. When the wind blows off your old worn out roof you will be covered for only a fraction of the cost of a reroof.

You can get a better idea of what is happening to everybody if you run an internet search for roof insurance claims.

I wasn't sure exactly what to look for that way, but I did a search of what percentage of homeowners do without insurance, and it showed it to be 12%, but was 5% back in 2019. I'm actually surprised it's not higher than 12%. I've been thinking of just doing without it myself, but I know I wouldn't sleep as well at night knowing I could just lose it all.

Hey, I'd like to ask you guys about something. In the cancellation notice I got, there was a reference to a special state program for people who have a hard time getting insurance. This one is based in Milwaukee and is called the Fair Plan. I called to ask about it, and they said it only covers fire, and only pays actual cash value. No liability, no theft protection, no tornado protection, and nothing else. I can only get a quote through an agent, and I asked one today for a quote which I haven't gotten yet.
What do you think? Should I take it?
Oh, and it only lasts for a maximum of one year, but only 9 months if I don't replace the roof. It's a stop-gap program to give people a chance to make repairs to get back on regular insurance without lapsing, although it sure doesn't do much. Still waiting to see what the cost is. Here's the website for it: https://www.wisinsplan.com/

 

[quincy]

Does the agent have any special authority in negotiating on behalf of the customer with the company to make exceptions to the rules, or to put special exclusions into a policy to accomodate a customer they would rather not lose (such as one who's had insurance for 25 years and has never filed a claim?)



If they're losing money, they shouldn't cancel people who have been paying in and not taking anything out. But I understand what you mean. My house was built in 1886, so I guess there's things about it to not like.



I wasn't sure exactly what to look for that way, but I did a search of what percentage of homeowners do without insurance, and it showed it to be 12%, but was 5% back in 2019. I'm actually surprised it's not higher than 12%. I've been thinking of just doing without it myself, but I know I wouldn't sleep as well at night knowing I could just lose it all.

Although it might be tempting to go without insurance to save money, it seriously is not worth the risk. To lower cost, you can increase your deductible (although you will want enough money in savings to cover the deductible should you need it).

The insurance companies in some areas have had to pay out on claims more than they collect, because of the increase in natural disasters affecting more people. Florida is one state example where insurance companies have either raised their premiums so high that insurance is no longer affordable for the average homeowner or the insurance companies have fled the state due to the loss of money from paying out on widespread damages from hurricanes.

It can be possible to negotiate somewhat with an agent but, like adjusterjack (a former insurance adjuster) said, it is the company that makes the rules. The agent only follows them.

 

[Subjection1]

Although it might be tempting to go without insurance to save money, it seriously is not worth the risk. To lower cost, you can increase your deductible (although you will want enough money in savings to cover the deductible should you need it).

The insurance companies in some areas have had to pay out on claims more than they collect, because of the increase in natural disasters affecting more people. Florida is one state example where insurance companies have either raised their premiums so high that insurance is no longer affordable for the average homeowner or the insurance companies have fled the state due to the loss of money from paying out on widespread damages from hurricanes.

It can be possible to negotiate somewhat with an agent but, like adjusterjack (a former insurance adjuster) said, it is the company that makes the rules. The agent only follows them.

I'll do what I can to have it, but I fear that I could get a new roof, and then they'll look for other problems to deny me coverage for. During the inspection that cost me my current policy, they not only cited a few roof problems, but overhanging trees, cracks and a raised area in the driveway, and missing mortar in the bricks of the chimneys. The inspector didn't even go in the fenced in backyard where he could have seen my worn-out deck with rotting boards.
And getting a contractor to fix things isn't easy for some reason. When I got my current roof 21 years ago, I called every roofing contractor in the phone book, but none of them would come to my house and give me a quote. I also had a small concrete job that needed to be done next to my house and once again I called every contractor in the book for that type of work and nobody would come and do it. I ended up having to rely on guys that a friend knew through word-of-mouth that were a handyman and did side jobs. I'm not looking forward to going through all of that again. I don't even understand why it happened that way.

 

[quincy]

I'll do what I can to have it, but I fear that I could get a new roof, and then they'll look for other problems to deny me coverage for. During the inspection that cost me my current policy, they not only cited a few roof problems, but overhanging trees, cracks and a raised area in the driveway, and missing mortar in the bricks of the chimneys. The inspector didn't even go in the fenced in backyard where he could have seen my worn-out deck with rotting boards.
And getting a contractor to fix things isn't easy for some reason. When I got my current roof 21 years ago, I called every roofing contractor in the phone book, but none of them would come to my house and give me a quote. I also had a small concrete job that needed to be done next to my house and once again I called every contractor in the book for that type of work and nobody would come and do it. I ended up having to rely on guys that a friend knew through word-of-mouth that were a handyman and did side jobs. I'm not looking forward to going through all of that again. I don't even understand why it happened that way.

I know it can be difficult to find contractors that have the skills necessary to work on some houses built in the 1800s.

At any rate, you should be able to find an insurer. The question will be, at what price.