Can home insurance drop you for making too many claims?
Home Insurance
Question by OneBrilliantMan: Can home insurance drop you for making too many claims?
Can a home insurance drop you if you made too many claims over the years do to weather? If they can is it legal? Can you fight it? All the claims are real claims do to weather.
Best answer:
Answer by Henry
Yes.
Know better? Leave your own answer in the comments!
Tags: can homeowners insurance drop you, can homeowners insurance drop you for claims, can insurance drop you after a catastrophic claim, home insurance drop you, homeowners insurance "too many claims", how can homeowners insurance drop you, insurance drop too many claims, Mortgages, to many claims
It depends on the claim type, and which state you are living in.
Most states will allow an insurer to drop you, for 2 or more non-catastrophic claims in three years. Non-cat, means, excluding storms that cause massive damage to lots of houses – like hurricane ike. Most storms are NOT cat storms.
However. If the weather claims are NOT cat claims, they count against you. Even in states which do not allow homeowners to cancel for claims, the insurance companies can find OTHER legal reasons to cancel you – like for having unrepaired damage, or doing inspections and finding other “increase in hazard” issues.
If the claims are were caused by weather, then they should not be able to cancel you. You had absolutely no controll over that. However, if any were not, or any of them may have been contributed to your neglect they will have the right to.
What you can do, is file a complaint with your state insurance board. There they will be able to review your complaint and determine if the insurance company can legally cancel your coverage.
UNlike medical insurance where it is illegal, home owners CAN drop you if you make too many claims. It might sound unfair but for them you are a bad risk, so they can and will drop you. I thought most homewoenrs insurance do NOT cover weather related damages anyway. What kind of damage are you talking about? Flood or tree dow nand hit your car type? Flood is covered by flood insurance, not homewoenrs. And if it’s tree down or hurricane took off your roof, it’s not likely it will happene that many times if at all. If it does, I suggest you move!