Is it true that if you file a claim with your home owners insurance, they'll likely terminate your coverage and not pay the claim? I heard that as soon as you file a claim, the Insurance company cancels your policy. Has this ever happened to anyone? Has anyone else ever heard of this? dalisash@comcast.net
2007-05-08 05:45:48 · 4 answers · asked by Lisa R 2 in Home & Garden ➔ Other - Home & Garden
They will pay your claim. They may also raise your rates or possibly cancel you later. this is why you have to really talk to your agent and ask hard questions. I asked my agent how many policies they cancel per year. You do need to realize that they are not in business to lose money and many people either falsify claims or claim every little thing. Thats why I prefer a higher deductable.
2007-05-08 06:04:12 · answer #1 · answered by sensible_man 7 · 0⤊ 0⤋
Several years ago, I had a defective toilet which flooded the entire first floor of my home. It was my first claim on my homeowner's policy and I had lived in the home claim-free for 3 years. They did not cancel my policy and they did pay the claim which obviously was a great sum. However, my insurance premiums went up substanially over the next five years.
That being said, my neighbor 5 houses up made several claims on her homeowner's insurance (3-4) in a 5 year period. After her last claim, she was not offered a renewal policy, so they technically cancelled her policy. While shopping around for new insurance, she discovered no one would cover her, she was technically "blacklisted". The only insurance she was able to obtain was mortgage insurance through her mortgage holder because she was required to have it. She no longer had coverage on her structure, her personal possessions, liability or fire insurance. As a result, she put the house up for sale and sold. The question is whether the house is blacklisted or she is.
2007-05-08 13:37:07 · answer #2 · answered by eskie lover 7 · 0⤊ 0⤋
They cannot cancel and not pay. They will pay the claim and depending on the amount they may or may not cancel the policy. Ask your agent for details.
If you run into problems, call your state insurance commissioner.
This is assuming that it is a legitimate claim and not fraud.
2007-05-08 12:50:29 · answer #3 · answered by j h 2 · 0⤊ 0⤋
No. If you file a claim your rates may go up, but they have to pay the claim.
2007-05-08 12:50:30 · answer #4 · answered by Papi 3 · 0⤊ 0⤋