can insurance co. cancel you in ohio for catastrophe claims such as the one we had in ohio on june 8, 2007
Total Comments: 11
Posted: Fri Mar 21, 2008 05:12 am Post Subject:
Catastrophe claims are not chargeable claims, so I'd have to assume no. Not just for a catastrophe claim.
Unless, they were hit so hard that they are having to cut back their exposure. Then, I would suspect, there would be widespread non-renewals.
Allstate did that here in Texas and, from what I hear, the whole Atlantic and Gulf coast. They chose to non-renew every home, in the second teir counties, that were not brick homes.
Otherwise, I can't see any company just deciding to single out a couple people to non-renew just because a hail claim.
Posted: Fri Mar 21, 2008 09:59 am Post Subject:
MB, is correct (of course :wink: ) you cannot be non-renewed or canceled or even a rate increase. Unless the company pulls out of the area, and that would be all policy holders not just you.
Posted: Sun Mar 23, 2008 12:49 pm Post Subject:
Why would they do this if they could just increase their rates?
Posted: Sun Mar 23, 2008 10:37 pm Post Subject:
Generally, when a company pulls out of a certain area, they are trying to cut their exposure to losses. Now, sometimes we see them do this to eventually try to force changes by the state's DOI.
In Texas, many companies did this when the state's HO-B policy was found to have loopholes in it's wording in regards to mold coverage. TDI required all admitted carriers write either the HO-A, HO-B or HO-C policies. These policies were established by TDI and were very difficult to get changes made to them. When TDI would not budge on changing the wording, most companies quit writing homeowner's insurance. In most other states, the insurance companies wrote ISO type forms such as the HO-3.
Finally, TDI gave in and allowed the carriers to submit different policy types for approval and we now have a much more diverse home insurance market.
We seem to be at odds with the 2005 Hurricane season now with carriers restricting certain areas. These moves are taking place for several reasons.
One of the reasons is the problems arising to the flood exclusion on the policy and how to categorize storm surge. Since carriers are losing lawsuits when the policies clearly exclude tidal water, they feel the only recourse is to cut exposure until a solution can be found.
Another is the increasing amount of losses incurred from these stronger hurricanes. Many companies feel that only requiring the coastal counties be managed under the state's windstorm insurance pool is not enough. They feel if they can pull away from these areas, the states may increase the coverage area of their windstorm pools, thus lowering the exposure of the home policies these carriers face in these areas.
There are many reasons a carrier could pull out of an area, but only these few are common. They also involve some type of strategy instead of just not wanting to write that area.
Posted: Mon Mar 24, 2008 01:39 pm Post Subject:
Pulling out ,wouldn't that make it hard for the policy owner to get decent coverage from another carrier/ What I mean is a new insurance company would see a claim on their previous hail damage and not want to cover them. Can new insurance companies veiw past insurance company records? I can only imagine how Katrina victims are getting coverage.
Posted: Mon Mar 24, 2008 06:19 pm Post Subject:
You cannot be surcharged for a wind/hail claim. Generally, this type of claim will not make it too difficult to obtain coverage and an insurance carrier would be hard pressed to deny coverage to a person who has 1 wind/hail claim.
Many companies tried doing that with water claims in Texas during the mold issue and the state jumped in really quick to say a carrier could not refuse coverage due to 1 water claim.
Carriers tried to say water claims could be prevented in large part and they did not want to have to pay claims for mold, when the water leak that caused it could have been years prior to the claim(when the insured may have been insured with another company).
Now, when more and more companies begin to pull out of an area, it then becomes difficult for anyone in that area to obtain coverage, regardless of claims. That is usually when the state will step in.
Posted: Tue Mar 25, 2008 12:13 am Post Subject:
You cannot be surcharged for a wind/hail claim.
Well this used to be true everywhere..however it's not now...in my state with the company I am insured with...you get one cat. loss ''free'' after that there is a rate up...I'll have to look I think there is a time limit...like one free every five years or something...This changed in my area about 8-10 years ago....stinks... :twisted:
Posted: Tue Mar 25, 2008 12:23 am Post Subject:
Wow, that does stink. Especially along the gulf coast where we have all kinds of nasty weather situations.
Posted: Tue Mar 25, 2008 11:18 pm Post Subject:
Very true. Seems we are paying more and more for insurance with less and less coverage.
Posted: Mon Mar 31, 2008 10:48 am Post Subject:
Wouldn't even matter if you had a garage in some cases, if the area is common to these storms you could be out shopping and run into one or at work, etc, etc. Doesn't seem fair to these consumers not to have the ability to purchase insurance.
Posted: Fri Mar 21, 2008 05:12 am Post Subject:
Catastrophe claims are not chargeable claims, so I'd have to assume no. Not just for a catastrophe claim.
Unless, they were hit so hard that they are having to cut back their exposure. Then, I would suspect, there would be widespread non-renewals.
Allstate did that here in Texas and, from what I hear, the whole Atlantic and Gulf coast. They chose to non-renew every home, in the second teir counties, that were not brick homes.
Otherwise, I can't see any company just deciding to single out a couple people to non-renew just because a hail claim.
Posted: Fri Mar 21, 2008 09:59 am Post Subject:
MB, is correct (of course :wink: ) you cannot be non-renewed or canceled or even a rate increase. Unless the company pulls out of the area, and that would be all policy holders not just you.
Posted: Sun Mar 23, 2008 12:49 pm Post Subject:
Why would they do this if they could just increase their rates?
Posted: Sun Mar 23, 2008 10:37 pm Post Subject:
Generally, when a company pulls out of a certain area, they are trying to cut their exposure to losses. Now, sometimes we see them do this to eventually try to force changes by the state's DOI.
In Texas, many companies did this when the state's HO-B policy was found to have loopholes in it's wording in regards to mold coverage. TDI required all admitted carriers write either the HO-A, HO-B or HO-C policies. These policies were established by TDI and were very difficult to get changes made to them. When TDI would not budge on changing the wording, most companies quit writing homeowner's insurance. In most other states, the insurance companies wrote ISO type forms such as the HO-3.
Finally, TDI gave in and allowed the carriers to submit different policy types for approval and we now have a much more diverse home insurance market.
We seem to be at odds with the 2005 Hurricane season now with carriers restricting certain areas. These moves are taking place for several reasons.
One of the reasons is the problems arising to the flood exclusion on the policy and how to categorize storm surge. Since carriers are losing lawsuits when the policies clearly exclude tidal water, they feel the only recourse is to cut exposure until a solution can be found.
Another is the increasing amount of losses incurred from these stronger hurricanes. Many companies feel that only requiring the coastal counties be managed under the state's windstorm insurance pool is not enough. They feel if they can pull away from these areas, the states may increase the coverage area of their windstorm pools, thus lowering the exposure of the home policies these carriers face in these areas.
There are many reasons a carrier could pull out of an area, but only these few are common. They also involve some type of strategy instead of just not wanting to write that area.
Posted: Mon Mar 24, 2008 01:39 pm Post Subject:
Pulling out ,wouldn't that make it hard for the policy owner to get decent coverage from another carrier/ What I mean is a new insurance company would see a claim on their previous hail damage and not want to cover them. Can new insurance companies veiw past insurance company records? I can only imagine how Katrina victims are getting coverage.
Posted: Mon Mar 24, 2008 06:19 pm Post Subject:
You cannot be surcharged for a wind/hail claim. Generally, this type of claim will not make it too difficult to obtain coverage and an insurance carrier would be hard pressed to deny coverage to a person who has 1 wind/hail claim.
Many companies tried doing that with water claims in Texas during the mold issue and the state jumped in really quick to say a carrier could not refuse coverage due to 1 water claim.
Carriers tried to say water claims could be prevented in large part and they did not want to have to pay claims for mold, when the water leak that caused it could have been years prior to the claim(when the insured may have been insured with another company).
Now, when more and more companies begin to pull out of an area, it then becomes difficult for anyone in that area to obtain coverage, regardless of claims. That is usually when the state will step in.
Posted: Tue Mar 25, 2008 12:13 am Post Subject:
You cannot be surcharged for a wind/hail claim.
Well this used to be true everywhere..however it's not now...in my state with the company I am insured with...you get one cat. loss ''free'' after that there is a rate up...I'll have to look I think there is a time limit...like one free every five years or something...This changed in my area about 8-10 years ago....stinks... :twisted:Posted: Tue Mar 25, 2008 12:23 am Post Subject:
Wow, that does stink. Especially along the gulf coast where we have all kinds of nasty weather situations.
Posted: Tue Mar 25, 2008 11:18 pm Post Subject:
Very true. Seems we are paying more and more for insurance with less and less coverage.
Posted: Mon Mar 31, 2008 10:48 am Post Subject:
Wouldn't even matter if you had a garage in some cases, if the area is common to these storms you could be out shopping and run into one or at work, etc, etc. Doesn't seem fair to these consumers not to have the ability to purchase insurance.
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