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Old Yesterday, 02:48 PM
 
3,263 posts, read 6,481,557 times
Reputation: 3493

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Quote:
Originally Posted by OrganicSmallHome View Post
We just received a notice from our insurance company that they are cancelling our homeowner's insurance because they "prefer" not to insure a property for an out-of-state resident. We don't live in the home full-time, but they knew this when we took out the policy. We've had the policy for 2-1/2 years and have made no claims, nor have we been behind in insurance payments. Any ideas of why they might have made such a decision?
Exactly why they said - they prefer not to insure out-of-state residents. Or absentee landlords if you will.
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Old Yesterday, 03:36 PM
 
Location: Raleigh
5,107 posts, read 3,643,207 times
Reputation: 6043
I'd guess underwriting standards changed. Most companies re-insure their book to bigger financial operations. Someone decided to drop that class of business. Call your agent and change companies.
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Old Yesterday, 04:06 PM
 
Location: Saint John, IN
7,180 posts, read 1,811,293 times
Reputation: 7286
Quote:
Originally Posted by ss20ts View Post
Here's the thing...if your $38K house burns down, you don't get to just leave it a burnt pile of rubble. Part of your policy probably includes clean up and site work. You'd have to clean it up and do site work even if you want it to be vacant land. That's not free or cheap in many areas. They also don't give you a check for $400K and walk away. Frequently, there's disbursements for work done. You need written bids, permits, all kinds of fun stuff! My parents went through all that when a massive tree fell on their house during an ice storm.


EXACTLY!


The majority of insurance companies will not just give you a check for the dwelling amount of your policy, even if you own it free and clear. Most have stipulations in the policy that state you must rebuild. There are a few companies however that do offer a cash out option, but it's typically an endorsement and I only know of a few companies that will actually do it.


Nonetheless, if an insurance company is insuring a dwelling at $400k that was purchased for $38k, then I'm assuming it was purchased as a foreclosure. No one in their right mind is going to sell a home for $38k if it would cost $400k to build. I know insurance companies insure homes for WAY more than market value (typically) as you're insuring replacement, but that's too big of a gap. That poster clearly didn't give all the facts!
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Old Yesterday, 04:20 PM
 
Location: In a vehicle.
3,383 posts, read 1,995,171 times
Reputation: 5134
Quote:
Originally Posted by OrganicSmallHome View Post
We just received a notice from our insurance company that they are cancelling our homeowner's insurance because they "prefer" not to insure a property for an out-of-state resident. We don't live in the home full-time, but they knew this when we took out the policy. We've had the policy for 2-1/2 years and have made no claims, nor have we been behind in insurance payments. Any ideas of why they might have made such a decision?
Be glad you got notice. My Mother got cancelled with no warning.............Luckily she'd moved her car insurance 2 years previous and went with the insurance company who ignored the cancelled notice and gave her a decent rate....
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Old Yesterday, 08:57 PM
 
Location: Saint John, IN
7,180 posts, read 1,811,293 times
Reputation: 7286
Quote:
Originally Posted by Disgustedman View Post
Be glad you got notice. My Mother got cancelled with no warning.............Luckily she'd moved her car insurance 2 years previous and went with the insurance company who ignored the cancelled notice and gave her a decent rate....


By law they have to give you a 30 day cancelation notice.
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Old Today, 01:57 AM
 
Location: Eugene, Oregon
4,777 posts, read 1,254,030 times
Reputation: 5747
Your local insurance agent should have contacted you by now and either lined you up with another insurance company that will give you coverage or referred you to another local agent who handles policies for such a company. Any local agent who doesn't do this, has not earned the commission that is taken from your premiums.
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Old Today, 08:23 AM
 
1,776 posts, read 2,653,026 times
Reputation: 2895
Insurance companies aren't really interested in providing you with a service and you need to realize that. They are interested in one thing and one thing only, profit. They do anything and everything they can to avoid insuring properties that will likely result in claims and when there is a claim they do everything they can to minimize it and sometimes look for any little detail they can find to reject the claim and leave you holding the bag.

They decided to cancel your policy because they feel the risk of a claim is enough you may cost them some of that money they have been collecting from you for nothing. It is just one company, find another and start a new policy. Odds are that you will find a better rate than you were paying anyway. I get quotes regularly on my policies when the come up for renewal and I swap insurance companies all the time. I review them just like they review me. They send me a premium increase notice, I send them a notice of cancellation in a few days after I start a new policy elsewhere. On auto insurance in particular they are really bad about giving you a good rate to get you as a customer and then every 6 months they try to increase the rate by around 10% and when you call they will give you the "We had a rate increase in your state" nonsense. That is their go to line for increasing your rate on both homeowners and auto. I always tell them my rates go down not up because I don't have claims and then I find a better rate. Don't worry about it and move on, it is just insurance.
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Old Today, 11:39 AM
Status: "Kimo crack corn. Ainokea." (set 28 days ago)
 
Location: Big Island of Hawaii
1,635 posts, read 507,905 times
Reputation: 4001
have you asked your insurance company why they changed it?
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