Homeowner’s insurance. Help, I’m screwed
Question: Hello. I’m a fairly new home owner (2 years). Due partially to my own ignorance, but mostly due to theives I’ve apparently been blacklisted by insurance companies. Over the last 2 years, I’ve had two thefts here. One minor, a stolen porch swing. That time I called the insurance company to ask what my deductable was. They said “$250, why?” Being an honest and straightforward guy I said something was stolen but it was under the deductable so never mind. They effectively said “thanks, your claim number is xyz.” Apparently that counts as a claim?
Second time our garage was broken into. Just a couple of minor things (tools, maybe $25 worth) that I did not mention to the insurance company ever. Plus one major thing, a moped, that the insurance salesman I bought the insurance from said would be covered. They denied coverage on the moped, and I have no proof the salesman ever said it was covered. They counted this as another claim and have just sent me a notice of cancellation for “too many claims”. They refuse to discuss the matter, their decision is final, and that’s just as well by me since I’d rather be with another insurance co. who’s salesmen won’t lie to me anyways.
Out shopping for insurance, nobody will insure me for less than SIX TIMES what I’m paying now because of the two claims. Apparently they get the info from some sort of credit-type place. Do I have any options here? Can I contact whatever this information place is and have them set my record straight? I feel like, well no “feel like”, I *am* being punished for being the victim of a crime that I took all reasonable efforts to prevent. I’ve never received a dime from the insurance co. ever!
Thanks for any advice, and stay away from Allied Group insurance!
Answer: First, read your policy. It may say you are required to report all incidents even if you don’t make a claim.
Second, call your state’s insurance office. They can tell you the law concerning how many claims you can have and what type of claims they are for an insurance company in that state to legally cancel you. Every state should have a number. For example, in Georgia, for auto insurance, 3 at-fault claims within 5 years is grounds for cancellation.
Third, don’t let them cancel on you. It will look bad on a credit report. Instead, you should drop them before the cancellation takes effect. Then, it won’t show up on a credit report. Most states have a law that requires the insurance company give you a certain number of days before the cancellation takes effect.
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