House Insurance -- Big problem - need advice!?

Question

My wife and I own a house and are trying to obtain a new Homeowners insurance policy. You see, we've lived here for 2 yrs and were robbed 2x in the first 13 months...We since installed a GOOD alarm system, put security doors up and haven't had any problems. It's not a bad neighborhood perse, maybe just bad luck, living on a corner and such.
Our Insurance is "non-renewing" our policy and we're trying to find a new one, but it's tough as you can probably guess. It's REALLY PISSING me off, as this is not our fault, we make sufficient income, have EXCELLENT credit (I know this means little to insurance), but are currently working with the company that handles our car insurance. They tried one place and were told no and are currently looking into another.
What happens if we aren't able to find anything, at least right away? I believe that our mortgage company says that we need insurance (states on contract). We only have about a week to find something, otherwise...
Advice?

I know some of you would say to move, but that's out of the question. House prices are down right now, so we're going to ride it out. What we need to know, is what we should do RIGHT now, or what our options are. I seriously don't know why the mortgage company needs to get involved, as it has nothing to do with that... We're responsible, college graduate young couple with their first house. What a lousy experience this has been.

Thanks for all of the advice. Yes, its down to the wire now. Hopefully the agent is able to find something by Monday, otherwise I'm going to another local guy. We only have ONE WEEK left to find something.
I live in CA and to answer the last poster's question, my driving record is clean (13 yrs). This is all a big nightmare.

Answer 1

Credit actually means ALOT to insurance companies. Also, the mortgage is getting involved because if the house burns down, the insurance pays off their loan - no insurance, defaulted loan. It has everything to do with them.

Now, you have very few options right now. Moving would do nothing by the way because the loss reports are run on the person, not the property, so these losses will follow you for 3-5 years. You need to continue shopping. Contact an independent agent who has numerous companies and see who will take you on. Your other option is that you can get insurance through the mortgage company, but it is very expensive and normally covers fire only with no personal property coverage. The other option (in PA at least) is the state insurance program. This is also very pricey, but may offer broader coverage than the mortgage policy.

Unfortunately, you are very high risk right now - get whatever you can and ride it out until it has been 3-5 years after the claims (depends on your state).

Good Luck.

Answer 2

I would say it is time to contact a lawyer as well. Although you may have more money out of pocket for an attorney than what it would cost to fix the problem. If it's been an ongoing problem, an insurance company isn't going to pay for the damages. Insurance is for something sudden and accidental. I wouldn't bet on them coming through for you. As far as the seller, it doesn't sound like they are going to do anything either because they would have fixed the problem when they owned the house. Unfortunately I think you might be stuck with this one. My friend bought a house and a week later had problems with the house and they got stuck with the bill. They didn't have an inspection so that hindered what they could do to the sellers. I wish you the best of luck hun! It sounds like a nightmare.

Answer 3

Don't let the coverage lapse. Your mortgage company will place coverage to protect them, bill you, and not worry about the cost or coverage for your stuff. You need to get coverage.

As already stated, credit is important to insurance companies. It is a major rating tool.

You are just going to have to shop around to find something. Several people have posted company suggestions, but who you end up with depends a lot on where you live. You need to emphasis the addition of alarm system and security doors.

Answer 4

Well, moving isn't going to help you at all, as the claims will follow you.

I'd start with the carrier that's nonrenewing you - ask the agent if they'd consider keeping you on, if you took a $5,000 or $10,000 theft deductible, or, a flat out theft exclusion on your policy. That's going to be most economical.

Then make the same offer to whichever agent is shopping you out.

Have you tried a Travelers agent? If you're willing to take on a theft deductible higher than the most expensive theft claim you've had, they're very likely to take you on.

There's always Foremost Insurance - likely, they'd not offer you any theft coverage at all. They're a high risk company (owned by Zurich, though, who also owns Farmers, so they're SOLID) and great for "hard to place" accounts. If you can't find a local agent who can get you Foremost, you can find an agent through their website, at www.foremost.com.

Oh, I'm assuming you're not in Florida.

Answer 5

Most mortgage companies will purchase insurance for you and pass the cost onto you. The coverage will only look after the secured interest in the property and will not include any of the benefits you would normally expect. It will not include coverage for your personal property in your home or additional living expenses in case of a loss. For this you will pay higher than normal premiums. Adam Fullman

Answer 6

It would be helpful to know what state your in. Also, how clean is your driving record? Some company may take a chance on a package deal if you take a high deductible on your policy.

Foremost will write a standard market policy, but their claims handling is weak and policy is full of holes.

If you live in Ohio, email me and I'll give you a referral.

Answer 7

I don't know about the US, but in the UK most mortgage companies have close ties with their preferred insurance companies - ones that pay them commission, basically. Speak to your mortgage company and see what they suggest. It *may* mean you paying more than you should for a year, but if it fixes the problem...

Answer 8

Try one of the larger companies not a broker. Such as Farmers. They usually have a system in place so they can write you a policy even though you have had some claims.

Answer 9

call your mortgage comapany, they may be able to refer you to a "high risk" insurer. Homeowners insurance is notorious for dropping people after only one claim. It needs to be fixed legally,if you ask me!

Answer 10

call your insurance commissioner, that's what we did last year , they will tell you what company to call.