Will insurance co. pay existing claim after cancelling?

Submitted by Anonymous (not verified) on Mon, 09/30/2013 - 09:57

I had business insurance for many years and never filed any claim. Then a month ago, we had a fire that engulfed the entire building and the contents. All of a sudden, after 15 days of the incident, they sent me changes to my policy increasing the premiums from $230 to $965 per month.

I was thinking of canceling the policy but a bit concerned as they’ve already paid to rebuild the building and presently working on the content and loss of income. If I cancel the policy today, will they still go on paying for the content and loss of income?

Thank you.

Posted: 30 Sep 2013 01:28 Post Subject:

If I cancel the policy today, will they still go on paying for the content and loss of income?



Most likely they will consider loss income up until the last date of the policy but you'd also need to read the policy to know for sure.

Posted: 01 Oct 2013 06:44 Post Subject:

The reason for the premium increase is the recognition of risk your business poses to the insurance company. Perhaps they should have been charging you more than $230/mo from some time ago.

Can you cancel your coverage? Of course. But be sure to read your policy, as tcope recommended, to know how they will deal with your claim.

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