Games Insurers Play

[Collin Hays]

I've had a property insured with American Modern for a number of years.  In fact, most of my properties are insured by American Modern.

At a recent renewal for one of my properties, I got a cancellation notice from American Modern due to "insufficient funds".  Seems they were attempting to draft from an old bank account.  That should be an easy fix - just give them the correct account number, right?  Nope.  They would not renew unless the roof is replaced, and liability limits were cut in half.  

So, this wasn't about "insufficient funds", but about an insurance company deploying a trip wire to cancel me. This is an old trick in the insurance industry:  If you have a risk that you no longer feel good about, find an opportunity to cancel.  Life and long term care insurance are typically where you see this.

After a lot of wrangling, the agent was able to get the policy renewed with the correct bank account number for the auto draft.  

I guess the point of this post is, be watchful and don't give an insurer an easy opportunity to cancel you.  Don't fall for the "like a good neighbor" or "You're in good hands with Jake" bit.  Jake works for the insurance company, and he ain't your neighbor.

[John Underwood]

I get these cancellation notices all the time about something stupid.

Sometimes I fix what they mention and they won't renew anyway.

I've got to where I just get other quotes and they lose my business.

I have a lot of rental insurance policies. I can and will pull all of them and move to someone else.

I have a mix of different insurance companies. I mostly have Foremost policies.

[Ryan Moyer]

If they don't want to renew with you, or want to write a new policy in order for you to be able to stay, can't they just choose not to renew on their end the same way we can on ours?  What's the point of the tricks?

[Collin Hays]

On a rant here, but State Farm cancelled my auto insurance in January due to "frequent claims".  So I switched to Progressive and actually saved some money. 

Now State Farm is back at the table for September, offering the same policy I had, but cheaper than before!

[Patricia Andriolo-Bull]

On a separate but related note, I just received my homeowners renewal in FL. I heard rates were going down but mine went down $2K!!! (to put this in context it went down by 1/3). I haven't received my STR renewals yet, one comes due in December the other in March but I am hopeful. For those of you with FL properties, curious as to what you are seeing.

[Andrew Steffens]

Quote from @Patricia Andriolo-Bull:

On a separate but related note, I just received my homeowners renewal in FL. I heard rates were going down but mine went down $2K!!! (to put this in context it went down by 1/3). I haven't received my STR renewals yet, one comes due in December the other in March but I am hopeful. For those of you with FL properties, curious as to what you are seeing.

Mine are down almost 50% from the highs after Ian :)

[Mark F.]

Same experience even as an owner occupant of a duplex. Insurance company tells me right before the renewal they won't be renewing. Reason being the tree they asked me to cut down via inspection report wasn't cut.

Huh that's weird. Because A. I never recieved any notice  B. The tree is gone and C. If you bothered to ask or have someone drive by they'd see a big stump where the tree was taken down a month into ownership. Happily didnt renew and bundled a bunch of policies with a better company. Suck it Philadelphia Contributionship. I'm sure Ben Franklin would be real proud of you guys.