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Homeowner's Insurance

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ChristinaG

Guest
What is the name of your state? Indiana

We got a notice that our home owner's insurance is being cancelled as of 11/15. (A bit of background: We had a small kitchen fire in Feb of 2001 which they paid a claim for. In Aug of this year, we had a problem with carpenter ants in the lower level family room. I called to find out if they would cover it and they said no.)

I called the insurance co. who called the underwriter. The underwriter said she was cancelling because there could be future damage due to the insect problem. I don't understand this because they don't cover insect damage anyway so why would this be a consideration? (I told them already that we're almost done with the repair, all we have to do is paint.) The underwriter refused to have someone come out and take a look at it. She states we had too many claims. We had insurance with them for 13 years and had one claim. They are using the phone call inquiry as a basis for cancelling us.

I have called around and because of this, we will have to pay an unbelievable amount of money for a premium. (Quotes are ranging from $1476 to $3200. One broker told me she didn't even bother finding out the price because it was from a "surplus" company and she felt it would be best for us to shop around.)

This doesn't seem fair and I would like to know what recourse we have? Thank you.
 


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knotcops

Guest
This doesn't seem fair and I would like to know what recourse we have? Thank you. [/B][/QUOTE]

None. Property claims have become a huge issue from an underwriting standpoint. By merely making a call to the agent about a potential claim, can get you cancelled. It may not seem fair, but this is the direction the industry is moving. Homeowners, for far to long, have used their HO policies as maintenance polices for the home. Pay the low deductable and let the insurance pay the rest. Not any more. I discuss the potential ramifications of filing a claim with my clients before doing so. That way they make their decision based on information. If it is a relatively small claim, pay it yourself. If it is a catastrophic situation, of course file the claim.
 
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ChristinaG

Guest
That may well be true, that some people use their HO ins. as maintenance. But WE do not. We've had one claim in 13 years. I thought this was done on a case-by-case basis. The rep I spoke to when I was inquiring about coverage on the insect damage NEVER told me that there was a possibility this phone call inquiry would be considered against us.

I don't understand these comments at the bottom of your response:

"When a client purchases insurance, all they are worried about is cost.

When a client has a claim, all they are worried about is their coverage.

Think about it!"

OF COURSE people are concerned about the cost of premiums. What normal person wouldn't be? Especially if you're living on one income.
 
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knotcops

Guest
That may well be true, that some people use their HO ins. as maintenance. But WE do not.

..... I never said YOU did. I was merely pointing out that HO insurance has been used that way and the industry is trying to curtail it.


I thought this was done on a case-by-case basis.

..... It is and yours got cancelled.


The rep I spoke to when I was inquiring about coverage on the insect damage NEVER told me that there was a possibility this phone call inquiry would be considered against us.

..... You have a lousy rep.


I don't understand these comments at the bottom of your response:

"When a client purchases insurance, all they are worried about is cost.

When a client has a claim, all they are worried about is their coverage.

Think about it!"

..... This is pretty self explanitory! People cheap out when purchasing insurance, then whine like hell when they have a claim that isn't covered to the extent THEY believe it should be.


OF COURSE people are concerned about the cost of premiums. What normal person wouldn't be? Especially if you're living on one income.

..... You need to balance the risk you are willing to take and the cost your willing to bare in the event of a claim, especially if the claim is for liability against you.
 

tammy8

Senior Member
I read one of the most interesting articles today on www.iii.org about homeowner's insurance. Basically the majority of companies throughout the country have paid out $1.17 of claims to every $1 they took in for premiums. How can a company stay in business this way????

To everyone: READ YOUR POLICY AND KNOW WHAT IT DOES AND DOES NOT COVER BEFORE CALLING YOUR AGENT!!!!

I want to add also to the many of MY clients that call and ask about claims, when I advise them NOT to set it up, please take my advice because you can become a nonrenewal like the orginal poster. It is not that I don't want my company to pay your claim, just that I know what the industry is facing in the future.
 

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