Insurer Cancelled Policy Before Close

[Konrad L.]

Hello,

I just received a call from Liberty Mutual saying that they are cancelling my homeowner's insurance policy.  Apparently, someone from the company went to look at the house and determined that the roof has some green mesh in some spots, some tiles are curled up and had some patches.  

The policy was started almost a month ago, and honestly, it was the best quote I received.  Needless to say, I was pretty happy since I thought LM is a reputable company.  However, this really changed my perspective on the company since we are supposed to close on this 3-family next week.  Keep in mind, neither the mortgage appraiser, nor the inspector saw anything out of the ordinary with the roof.  The inspector did see the green mesh in a few areas, but determined that the roof still has 5-8 years left to it at the least.  I offered to make necessary repairs and clean up, but LM said that they wouldn't reinsure me, so I cancelled my auto policy with them as well.

I was definitely blind sided by this and I hope I can find another company in time.  Now, I'm a bit worried that with which ever insurance company I'll go with next may also cancel on me.  Is this pretty common, or is LM just really tempermental in this regard?  Someone recommended to try Homesite through Geico.  This is my first home/investment purchase so majority of this is new to me.  

Any other recommendations or suggestions would be greatly appreciated.

Konrad

[Derek Lacy]

So you wanted a great insurance policy, through a great insurer (which liberty mutual is) with no underwriting?  

That's like asking for jumbo home mortgage, 4% interest, but don't look at my credit report.  

Regardless of your opinion Liberty Mutual has a great reputation.  Do they underwrite their policies, hell yes.  That's how they keep claims low.  When you keep claims low, you keep pricing low.  

So yeah, they found what they believe in their opinion is a deficient roof.  It's their money that pays out the claim, so their opinion is what matters.  

I think you found some yes men appraisers and inspectors.  "Yes we want you to be happy and close on the house."  They have no skin in the game after the house closes, the insurer does.

I would highly suggest, with the condition you suggest the roof is in (5-8 years left on a shingle might as well be 0 with a preferred underwriter), that you look at Foremost, Berkshire Hathaway, and or USLI.  They will most likely place restrictions on the roof, as in they will not pay for a full replacement due to condition if a hail storm or such comes by.  

But to say an insurer is not reputable because they are protecting every other policy holder that they insure (as they are a mutual so every policy holder is an owner) by underwriting a property is not correct.  You're shooting the messenger, sounds like the problem is the roof.