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Question
My current homeowners insurance provider said they will not continue with my homeowners policy after Sept 2013 because of a couple claims over the last 3 years. They said my home to claim ratio falls out of their criteria not sure that that means. So instead of waiting for them to cancel I called every ins company and was able to find just one willing to offer homeowners ins to me.

Question is this.. I was given a supplemental application to fill out and this was a question on it

"Has your homeowners insurance ever been cancelled within the past 5 years for a reason other than non-payment of premium?"

Since I cancelled the policy this week a month and a half before they did do I say yes to this question or no?


Answer
Ronald,

Many carriers will "non-renew" policies due to excessive claims over a certain period of time. Keep in mind that a "non-renewal" is different than a "cancellation". Cancellation takes place during a policy period and they are required to refund a portion of your premium on a pro-rata basis. "Non-renewal" is what was happening to you with the other carrier.

Cancellation can also be done for a number of other reasons as long as they comply with the Department of Insurance regulations. The biggest reason is usually for non-payment of premiums or non-payment of property taxes.

"Been" cancelled means: was it done by the carrier?

In your situation, your policy wasn't forcefully "cancelled", you made the decision to cancel it when you obtained a new policy. As long as your were honest on the original application about your loss history, you could reasonably answer "no" to the question. Make sure that you were clear with them on the prior losses because they could come back later and VOID the policy entirely if you had a substantial loss. Also, your premiums will be affected by your loss history as well.

(Check with your prior carrier to see if they are refunding the last month's premium.)

Hope this helps.

Kevin Hromas
JD, EGA, RPA, PLCS, HCRI-R/C, CPIU, WINDŽ Umpire
Kevin Hromas & Associates
... A Division of US Insurance Information LLC
www.KevinHromas.com  

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Kevin Hromas

Expertise

I am a licensed, executive general adjuster currently holding a Texas resident P&C license (614250), New Mexico non-resident all lines license (248774), Oklahoma non-resident P/F/M license (A299561), Florida non-resident P&C license (E117051) and a National Flood Insurance Program certification (06040100). My areas of expertise involve property and casualty issues in both residential and commercial policies with regards to claims practices and issues. I deal extensively with Lloyd's of London commercial policies and various domestic carriers for residential policies.

Experience

After a 20 year career as a General Contractor, I was employed by Allstate Insurance as an adjuster in Texas, holding various postitions within the property claims department. After leaving Allstate, I specialized in handling losses associated with major catastrophes through-out the country. (Hurricanes Isabel, Charlie, Wilma, Katrina, Ike, etc., hail storms, floods.) I am currently retained as an expert by multiple insurance defense firms in Texas for issues in litigation. I am also a certified Umpire for formal appraisals.

Organizations
Member - Society of Registered Professional Adjusters Fellow - Council on Litigation Management Member - Property and Casualty Association Member - Texas Independent Insurances Adjusters Association Member - National Association of independent Insurance Adjusters Member - Houston Claims Association

Publications
Claims Magazine (www.ClaimsMag.com and then search 'Kevin Hromas' for a full listing of articles and quotes.) www.ClaimsPages.com, www.ProAdjuster.org, www.KevinHromas.com

Education/Credentials
JD - University of Houston Law Center - 1992 BA - Southwest Texas State University - 1980 AA - South Plains College - 1977 PLCS - Personal Lines Coverage Specialist

Past/Present Clients
Certain Underwriters at Lloyd's, London, Fulbright & Jaworski (Law Firm), Bracket & Ellis (Law Firm) Thamm & O'Briant (Law Firm) Sheehy, Ware & Pappas (Law Firm) Walker, Wilcox and Matousek (Law Firm) Financial Guarantee Underwriters

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