OT: Insurance question

[gfluvsthecocks]

My father-in-law called and said that he just realized that he has been without homeowners insurance since June because after 30 years, State Farm canceled his insurance. He had a roof claim and a pipe that burst over 6 years, but had never filed a claim previously.

He had been with his current agent for 14 years. That person never called him to warn him. His only notice was apparently a letter from State Farm, which he never received. He found out because his mortgage company sent him a letter saying they had taken out coverage to protect their interest and at the same time State Farm canceled his Personal Umbrella.

The payment was set up on auto draft and because of the Umbrella, they didn't notice that State Farm was only charging them part of the premium.

Luckily, there was no damage to the house during this time. However, he is livid that this happened. He has worked hard his entire life and a situation like this could have ruined his retirement.

What should he do?

 

[hahnenkampf]

I had a similar situation with GEICO about 8 years ago. My daughter had a car accident but when I filed, GEICO said my policy had been canceled for nonpayment of premium. I said impossible cause it was setup as autopay with my bank. Turns out GEICO had sent my bank a notice of payment address change but bank never made the change. GEICO reviewed my file and said since I had a great 30 year history with them they would cover the $1500 claim. I've had Allstate, State Farm, and even USAA but GEICO beats all of them. My recommendation to you: pay it out of pocket, but get a new policy with GEICO.

 

[Golden Cock]

My father-in-law called and said that he just realized that he has been without homeowners insurance since June because after 30 years, State Farm canceled his insurance. He had a roof claim and a pipe that burst over 6 years, but had never filed a claim previously.

He had been with his current agent for 14 years. That person never called him to warn him. His only notice was apparently a letter from State Farm, which he never received. He found out because his mortgage company sent him a letter saying they had taken out coverage to protect their interest and at the same time State Farm canceled his Personal Umbrella.

The payment was set up on auto draft and because of the Umbrella, they didn't notice that State Farm was only charging them part of the premium.

Luckily, there was no damage to the house during this time. However, he is livid that this happened. He has worked hard his entire life and a situation like this could have ruined his retirement.

What should he do?

I dont know what to tell you. Its not unusual for someone to have homeowners insurance and mortgage insurance at the same time. Seems like he needs to have a word of prayer with his agent. After 14 years he should have been contacted at once.

 

[Koxxsman]

Tell him to go with Amica. I was with Allstate and they stopped providing a certain coverage I needed for some rental properties, so I cancelled everything with them and went with Amica. My son has been them for years and loves them. They provide a rebate every year on your premiums and are terrific to work with. I am retired and have no dog in this fight, just trying to help a Gamecock. Good luck.

 

[gfluvsthecocks]

To clarify, State Farm cancelled his policy for too many claims after the pipe burst. Luckily, nothing has happened since he was canceled.

The bigger question from his standpoint is what if something happened. I think that after 30 years with a company and 14 with his current agent, there should be a little more than a non-descript envelope telling you that you're losing coverage.

He has enough equity in his home that he doesn't have to carry Mortgage Insurance. So that being added and the Umbrella being cancelled because of no underlying coverage were the only reason that he knows now. Otherwise, he still wouldn't know.

He's switched companies and agents already. Anything else he should do?

 

[Golden Cock]

To clarify, State Farm cancelled his policy for too many claims after the pipe burst. Luckily, nothing has happened since he was canceled.

The bigger question from his standpoint is what if something happened. I think that after 30 years with a company and 14 with his current agent, there should be a little more than a non-descript envelope telling you that you're losing coverage.

He has enough equity in his home that he doesn't have to carry Mortgage Insurance. So that being added and the Umbrella being cancelled because of no underlying coverage were the only reason that he knows now. Otherwise, he still wouldn't know.

He's switched companies and agents already. Anything else he should do?

Sounds good. He should ask that question to his new agent.

 

[Tigertrain1]

My father-in-law called and said that he just realized that he has been without homeowners insurance since June because after 30 years, State Farm canceled his insurance. He had a roof claim and a pipe that burst over 6 years, but had never filed a claim previously.

He had been with his current agent for 14 years. That person never called him to warn him. His only notice was apparently a letter from State Farm, which he never received. He found out because his mortgage company sent him a letter saying they had taken out coverage to protect their interest and at the same time State Farm canceled his Personal Umbrella.

The payment was set up on auto draft and because of the Umbrella, they didn't notice that State Farm was only charging them part of the premium.

Luckily, there was no damage to the house during this time. However, he is livid that this happened. He has worked hard his entire life and a situation like this could have ruined his retirement.

What should he do?

Complain to the department of insurance and then drop State Farm. Contact Nationwide agent Todd Comalander and move all your business to him. He is a good friend and will keep your dad informed. He may pay a little more, but he will have a good agent. Speak with Todd and tell him you read this from a Clemson fan. Todd is a big gamecock fan

 

[usc37]

Call us 803-957-8004 ( Nationwide) and will write policy for you Monday!!

 

[UpstateGamecock2]

To clarify, State Farm cancelled his policy for too many claims after the pipe burst. Luckily, nothing has happened since he was canceled.

The bigger question from his standpoint is what if something happened. I think that after 30 years with a company and 14 with his current agent, there should be a little more than a non-descript envelope telling you that you're losing coverage.

He has enough equity in his home that he doesn't have to carry Mortgage Insurance. So that being added and the Umbrella being cancelled because of no underlying coverage were the only reason that he knows now. Otherwise, he still wouldn't know.

He's switched companies and agents already. Anything else he should do?

Complain to the department of insurance and then drop State Farm. Contact Nationwide agent Todd Comalander and move all your business to him. He is a good friend and will keep your dad informed. He may pay a little more, but he will have a good agent. Speak with Todd and tell him you read this from a Clemson fan. Todd is a big gamecock fan

State Farm has already dropped him.

 

[cocknjax]

My father-in-law called and said that he just realized that he has been without homeowners insurance since June because after 30 years, State Farm canceled his insurance. He had a roof claim and a pipe that burst over 6 years, but had never filed a claim previously.

He had been with his current agent for 14 years. That person never called him to warn him. His only notice was apparently a letter from State Farm, which he never received. He found out because his mortgage company sent him a letter saying they had taken out coverage to protect their interest and at the same time State Farm canceled his Personal Umbrella.

The payment was set up on auto draft and because of the Umbrella, they didn't notice that State Farm was only charging them part of the premium.

Luckily, there was no damage to the house during this time. However, he is livid that this happened. He has worked hard his entire life and a situation like this could have ruined his retirement.

What should he do?

At minimum, he should file a complaint with the Insurance Commission. He may even have legal claim against them, but I am no lawyer. Have been keeping insurance companies up for several decades. Almost every one of them will screw you if you are with them long enough.

 

[wil-cocks]

The insurance company is required to send a new Declarations page every year. That Declarations page tells you what dates the policy is enforce and the coverages you have. The insurance company is required to let the lien holder know when they non-renew a policy. The mortgage company will then force place a policy for the value of the policy. Force placed policies only cover minimal risks, generally just fire, wind and hail. They offer no coverage for personal property, adjacent structures, or liability. They are also way more expensive than a normal policy.
The day he got that Dec page and saw only coverage for the value of the home should have clued him in to the fact that there was an issue.

An insurance company can't cancel a policy for claim volume, but it can refuse to renew it. (That sounds like splitting hairs, but it is an important distinction) The agent should have been the one to make sure your father in law knew the policy lapsed. Depending on the age of the home, it could be difficult to get a new policy,especially if the home has been uninsured for more than 90 days.

2 claims in 6 years is not especially large claim volume. Especially if one was a roof claim, which I assume was caused by weather. State Farm has a reputation for dropping older insureds. They may have used claim volume as an excuse, but you'd never be able to prove it.

Complain to the State Insurance Commission if it will make you feel better, but all they will do is send an inquiry to State Farm. State Farm will answer it, provide a copy of the cancelation/non-renew letter with proof they mailed it, and that will be that.

 

[cocknjax]

The insurance company is required to send a new Declarations page every year. That Declarations page tells you what coverages you have. The day he got that Dec page and saw only coverage for the value of the home should have clued him in to the fact that there was an issue.

An insurance company can't cancel a policy for claim volume, but it can refuse to renew it. (That sounds like splitting hairs, but it is an important distinction) The agent should have been the one to make sure your father in law knew the policy lapsed. Depending on the age of the home, it could be difficult to get a new policy,especially if the home has been uninsured for more than 90 days.

2 claims in 6 years is not especially large claim volume. Especially if one was a roof claim, which I assume was caused by weather. State Farm has a reputation for dropping older insureds. They may have used claim volume as an excuse, but you'd never be able to prove it.

Complain to the State Insurance Commission if it will make you feel better, but all they will do is send an inquiry to State Farm. State Farm will answer it, provide a copy of the cancelation/non-renew letter with proof they mailed it, and that will be that.

Then maybe should all sue them for age discrimination!
I know they do precisely that!