RE: When home insurance coverage is not renewed?
I’ve had Travelers insurance for over 25 yr and they aren’t renewing my home insurance. I had 2 claims for natural disasters and 1 claim for all my belongings inside my car that I parked while I was in the hospital having surgery
First: Every claim you make counts against you. It doesn’t make any difference what-so-ever what the claim was for. This is the case in most states. If the insurance company has to pay out money, they lose. Weather related, theft, liability, doesn’t matter. It’s not about whose fault it is. It’s about frequency and severity. Period. Insurance companies are in the business to make a profit. Paying out claims to someone who makes a higher amount of claims than statistically planned for causes a loss of profit.
Second: The frequency of claims usually works like this…one claim every 10-12 years. If you’ve had three in a time period less than that, it makes no difference how long you’ve been insured. You’re a non-profitable customer. They will cut you loose.
Third: Many moons ago agents had some pull in this area. THAT IS NO LONGER THE CASE. Insurance agents are there to sell profitable policies. Your agent can scream to the highest rafters. The company made their decision based on profitability, not loyalty. The underwriting department made the decision and management signed off on it. Agent’s have very little say. The company doesn’t want to pay commission to an agent who is fighting for non-profitable business. It’s all about the almighty dollar. Sorry. These are the facts.
Fourth: You’re going to be stuck with high-risk insurance for a while at least. Probably the next three years. When you buy that insurance, be sure to carry a VERY high deductible (it will save you money). DON’T make claims if you can help it. Insurance is for LARGE losses. The type that could cause you financial ruin. Reserve it for that.
The world of homeowner’s insurance has changed a lot in the last few years. We’re all going to see much stricter underwriting rules and more frequent cancellations across the board.