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| *Loan,banking and credit>>>homeowner insurance |
Can my insurance company cancel my homeowners after 15 years, with no claims. Reason given,my credit rating..? |
Can my insurance company cancel my homeowners after 15 years, with no claims. Reason given,my credit rating..? They can't Source(s): http://www.insurance-assurance.com/... Maybe...but probably not. Do you live in a flood prone area? Florida? The Gulf Coast? I've read that insurance companies are cancelling thousands of homeowners policies to limit their exposure to a Katrina/Rita hurricane. Its a big problem You can call the company and ask them why you are not being renewed. Maybe they will tell you. Good luck...I hope you can find a reasonably priced replacement policy. Yes, I have read that a low credit score can cause prejudicial treatment from a variety of vendors such as utility companies, insurance companies, employers etc. The insurance industry does use an "insurance score," which is based off of your credit report. It is a score that measures your likelihood of filing a claim, where a credit score measures your ability to pay back a loan, so they are different. Almost every insurance company uses insurance scores in their rating process, which is legal in most states. I have heard of companies denying coverage for new customers based on their insurance score, but I've never known of companies to cancel an existing customer based on insurance score. I am not sure if it is legal, you may have to call your state's department of insurance (DOI) and ask if it is legal. If you have not filed any claims or have made any other changes that would change the risk of insuring your home, it sounds like they actually are cancelling you based on your insurance score, but I would check to make sure it is legal and take action if necessary. Good Luck. Yes they can. They are not obligated to insure you. However, if you have been paying the premium all along this would seem strange. What would your credit rating have to do with anything? They don't check that when the policy premium comes due. I think you have left something out of this story. Yes, if allowed by the state insurance department. You can put a quick call in to your state insurance department and ask them. If it were me, though, I'd contest the cancellation, as there isn't any "increase in hazard", and you don't have any claims. Along with the cancellation notice, there should be a little disclaimer that says something like, if you disagree with this action, please send a copy of this notice and the reason you disagree to your state insurance department, 123 Sesame St, state capital, state. Keep in mind, though, that once the insurance company wants to get off your policy, they'll take ANY excuse - late payment, forgot to send in whatever, you won't get ANY grace period or consideration. If it wasn't for the fact that you'll have a tough time replacing coverage with bad credit, I'd suggest you shop around for new insurance anyway. |
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