Can a homeowner's insurance be cancelled because of a "soft" claim?
A few years ago, I had my homeowner's insurance canceled because a thunderstorm caused significant mischief to my home. They cited the reason being that the insurance should one and only be used for a "catastrophic" loss. I attempted to obtain another policy with a different underwriter, but be turned down by all agents because of the claim on my record. I finally found an agent predisposed to take me as a client. He said couldn't understand why my former policy be canceled or why nobody else would take me since it was a "soft" claim. Then what's the purpose of have insurance? What is a "soft" claim? I just wanted to know some guidelines going on for filing claims like what should be the diving flash in dollar loss between not filing and file (i.e. what constitutes "catastrophic?") Any advice? Thanks in finance.
Answers:
Oh, I'm sure that's not the cited object - it was probably "underwriting reasons" or "file 2 or more claims within a 3 year period" or some other such.
Most states will allow an insurance company to cancel a homeowners policy if more than one claim is file within a three year period.
"Soft" claim contained by this case, is a "cat loss", a catastrophic loss like a storm, that hits profusely of houses at once. Many states won't let an insurance company count a cat loss, when counting claims. Catastrophic is defined after the loss, which doesn't help you out at adjectives. Cat losses can include wildfires, tornados, floods, hurricanes, that sort of thing.
Here's my guideline - don't file a claim for underneath $2,000. That also means, increase your deductible to $1,000. Assuming your house is worth between $100,000 and $200,000.
But go by that 1% and 2% if it's outside that gamut - deductible at 1% of the house value, and don't file a claim unless it's at least possible twice your deductible. Source(s): agent, 21+ years
I have never heard the occupancy "soft" claim before. Without knowing exactly what you claimed on your home before they cancelled you, i can't share you why it was cancelled. Source(s): Agent
That agent - of course - was trying to receive himself sound "special" for writing your coverage...by putting down the other agents
It's very regular to not be able to cover someone with prior claims near the major companies...ie: State Farm, Nationwide & Allstate.
I've never heard the occupancy "soft claim" but maybe he's describing that you put in claims, but weren't salaried anything? Maybe they were below your deductible..many relations make that mistake & it gives them a big claims folder....
Insurance is designed for MAJOR and catatrophic occurences - such as a house fire or hurricane...
Catastrophic = house fire or something causing a total loss
Some people attempt to use it to for care - like replacing an old roof after several small meander claims Source(s): Insurance Agent
Check your CLUE report.
Understand something here. Insurance carriers are contained by the business for the purpose of making bottom line profits. THEY ARE NOT IN THE BUSINESS TO PAY CLAIMS. What is so hard to deduce about this basic concept. Policies are canceled for oodles reasons, all relateon cloud ninehe dollar sign. I have seen policies canceled due to the low deductibles homeowners hold. Then the person right next door get a policy from the exact same carrier only next to a higher deductible. Why? Less likely to folder a claim due to a higher deductible. You do not need to directory a claim to be canceled or non-renewed. Insurance carriers are in the business of looking out for the "shareholders" not the policy holders. Source(s): Licensed insurance adjuster
Related Questions:
Answers:
Oh, I'm sure that's not the cited object - it was probably "underwriting reasons" or "file 2 or more claims within a 3 year period" or some other such.
Most states will allow an insurance company to cancel a homeowners policy if more than one claim is file within a three year period.
"Soft" claim contained by this case, is a "cat loss", a catastrophic loss like a storm, that hits profusely of houses at once. Many states won't let an insurance company count a cat loss, when counting claims. Catastrophic is defined after the loss, which doesn't help you out at adjectives. Cat losses can include wildfires, tornados, floods, hurricanes, that sort of thing.
Here's my guideline - don't file a claim for underneath $2,000. That also means, increase your deductible to $1,000. Assuming your house is worth between $100,000 and $200,000.
But go by that 1% and 2% if it's outside that gamut - deductible at 1% of the house value, and don't file a claim unless it's at least possible twice your deductible. Source(s): agent, 21+ years
I have never heard the occupancy "soft" claim before. Without knowing exactly what you claimed on your home before they cancelled you, i can't share you why it was cancelled. Source(s): Agent
That agent - of course - was trying to receive himself sound "special" for writing your coverage...by putting down the other agents
It's very regular to not be able to cover someone with prior claims near the major companies...ie: State Farm, Nationwide & Allstate.
I've never heard the occupancy "soft claim" but maybe he's describing that you put in claims, but weren't salaried anything? Maybe they were below your deductible..many relations make that mistake & it gives them a big claims folder....
Insurance is designed for MAJOR and catatrophic occurences - such as a house fire or hurricane...
Catastrophic = house fire or something causing a total loss
Some people attempt to use it to for care - like replacing an old roof after several small meander claims Source(s): Insurance Agent
Check your CLUE report.
Understand something here. Insurance carriers are contained by the business for the purpose of making bottom line profits. THEY ARE NOT IN THE BUSINESS TO PAY CLAIMS. What is so hard to deduce about this basic concept. Policies are canceled for oodles reasons, all relateon cloud ninehe dollar sign. I have seen policies canceled due to the low deductibles homeowners hold. Then the person right next door get a policy from the exact same carrier only next to a higher deductible. Why? Less likely to folder a claim due to a higher deductible. You do not need to directory a claim to be canceled or non-renewed. Insurance carriers are in the business of looking out for the "shareholders" not the policy holders. Source(s): Licensed insurance adjuster
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