Every month for more years than you care to call back , you sacredly pay yourhomeowners insurance policy . Then , one day , you move your $ 1,200 flat screen television receiver downstairs to the family room . The video slip and crashes to the trading floor ! You now have a $ 1,200 pile of junk . Not a problem . You do as any good homeowner does . You file a claim against your insurance policy policy . They pay . You ’re happy .
Two weeks later , lightning strikes your property and Roger Eliot Fry the well ticker . It ’s happened . I ’ve been there . Once again , you file a claim . Let ’s not bury the $ 700 cap haunt two age ago . Then , while you ’re enjoying your flat screen , a varsity letter comes in the mail . It ’s from your insurance company . Sorry , Charlie , as the old tuna commercial says . They ’re not going to renew your policy .
What ’s run on here ? Frankly , your indemnity company has determine you ’re a bad hazard . You ’ve file too many claims in too short a full stop . Can the party invalidate you just like that ? You bet .
Let ’s survey : homeowner purchase insurance policy to protect their home base and belongings from a variety of disasters , both big and small . Some may be as significant astornadodamage , or as mundane as Aunt Betty tripping on the walkway and burst her large toe . ( OK , it ’s terrene for you , but not for Aunt Betty . )
file a title , or multiple claims , is a wily business . Too many claims can mean an increment in your premiums . Other times , it means cancellation or non - reclamation . Before you charge a claim , intend long and hard . Some claims are not deserving filing . Let ’s take the flat projection screen television for instance . It be $ 1,200 . Your deductible was $ 500 . So , the policy companionship is paying only $ 700 . Your well pump costs only $ 1,000 . You know where I ’m go with this , right ? You saved a little Johnny Cash , but was it worth it ? I think not .
register on . you may thank me after .
The Insurance Companies are Watching
About 10 years ago , the Independent Insurance Agents & Brokers of America ( IIABA ) conduct the first - ever survey seeking information on homeowners insurance non - renewals and premium increases . What the group discover was eye - bulge . Over a two - yr period , 2.5 million home lost their householder reportage and 51 million households go through their rates increase . Nearly 57 per centum of house escort their rates alternate up to 10 percent , while 23.2 pct visit agiotage skyrocket between 11 and 25 percent [ root : Independent Insurance Agents & Brokers of America ] .
Why were there so many non - rehabilitation ? Becausehomeowners insuranceisn’t a big money Lord for indemnity company . Over the past few 10 , underwriter paid out more money in claims than they aim in as premiums . Many of those claim follow from a series of natural disasters that caused billions in wrong [ source : Christie ] .
In 2005 , belongings damage from Hurricane Katrina alone be insurance company $ 123 billion , the all clip record book . And the course continues . In 2011 , the indemnity industry had another bad year . A serial publication of catastrophes , includingearthquakes , floods and tornados sire $ 116 billion in title [ source : Neligan ] .
Another reason that insurance companies cancel so many people is because the firm are looking over your shoulder . Insurance company keep well track of the individual claim by using databases such as CLUE , the Comprehensive Loss Underwriting Exchange .
Back in the safe old day , insurance company would have to search public records and rely on homeowners to make up one’s mind whether to sell someone a policy . These twenty-four hour period , all the companies have to do is log on to CLUE . The database check up to seven years of personal property claims history [ source : Wisconsin Office of the Commissioner of Insurance ] .
What can you do to keep your insurance?
The paint to preserve your homeowner insurance is to use your head , even if you require a new flat screen . concord to the IIBA :
Keep in mind there is no certain - fervency way to prevent being cancelled or have your policy rate increase . The only thing we can all do is apply our dome .
When you own a domicile , you become an insurance expert of sorts . While your first dip after any character of damage is to take a claim to the insurance company , think again . If you’re able to afford it , repair the home yourself . You do n’t require to be searching for insurance , because if you ca n’t find it , your mortgage fellowship , bank or lender will find it for you . You do n’t want to pay the agio they charge .
