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Old 11-27-2017, 04:40 PM
 
2,633 posts, read 903,282 times
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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?
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Old 11-27-2017, 04:56 PM
 
9,220 posts, read 7,261,676 times
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Risk. You have been deemed too risky to insure. Look for another insurance company.
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Old 11-27-2017, 05:47 PM
 
2,633 posts, read 903,282 times
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Quote:
Originally Posted by charlygal View Post
Risk. You have been deemed too risky to insure. Look for another insurance company.
Risk of what? The house is located in a good neighborhood and has an alarm system. I'm mystified.
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Old 11-27-2017, 05:49 PM
 
Location: Saint John, IN
10,638 posts, read 3,299,800 times
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Why are you mystified? It's considered high risk because you do not consistently live there. You live out of state so you can't easily check on the property while you are not there. It's a higher risk due to the fact that it is not always occupied. Is it a homeowners policy or a secondary home policy? Regardless, one needs to be your primary and the other secondary. You can call and get quotes, but most carriers will want to insure your primary home if they are going to insure your secondary. You will find a carrier to accept the risk, but not all insure these types of risks. Check with an insurance broker that has multiple carriers.

Last edited by CGab; 11-27-2017 at 05:57 PM..
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Old 11-27-2017, 05:50 PM
 
Location: North Beach, MD on the Chesapeake
32,074 posts, read 39,100,535 times
Reputation: 40453
Quote:
Originally Posted by OrganicSmallHome View Post
Risk of what? The house is located in a good neighborhood and has an alarm system. I'm mystified.
Is it unoccupied for much of the time? That would do it.
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Old 11-27-2017, 07:00 PM
 
Location: Salem, OR
13,738 posts, read 31,524,987 times
Reputation: 12105
Quote:
Originally Posted by OrganicSmallHome View Post
Risk of what? The house is located in a good neighborhood and has an alarm system. I'm mystified.
Well if you water heater leaks, pipes burst, etc no one would know about it for while which increases the potential damage to the home.
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Old 11-27-2017, 07:30 PM
 
2,633 posts, read 903,282 times
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Quote:
Originally Posted by CGab View Post
Why are you mystified? It's considered high risk because you do not consistently live there. You live out of state so you can't easily check on the property while you are not there. It's a higher risk due to the fact that it is not always occupied. Is it a homeowners policy or a secondary home policy? Regardless, one needs to be your primary and the other secondary. You can call and get quotes, but most carriers will want to insure your primary home if they are going to insure your secondary. You will find a carrier to accept the risk, but not all insure these types of risks. Check with an insurance broker that has multiple carriers.
I'm mystified because they knew that the property would not be occupied full-time when we first took out the policy, and that didn't seem to pose any problem. In any case, I'll clearly have to find another policy.
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Old 11-27-2017, 08:15 PM
 
Location: Saint John, IN
10,638 posts, read 3,299,800 times
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Quote:
Originally Posted by OrganicSmallHome View Post
I'm mystified because they knew that the property would not be occupied full-time when we first took out the policy, and that didn't seem to pose any problem. In any case, I'll clearly have to find another policy.
Insurance companies change their policies constantly to reduce risk. It is now a risk they are unwilling to take.
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Old 11-27-2017, 09:25 PM
 
Location: Ocala, FL
3,119 posts, read 5,737,752 times
Reputation: 2634
In my state of Florida, several insurance companies have withdrawn due to the potential of hurricanes and their potential damage even if your area has never had damage. It is called "risk assessment" and the insurance companies would prefer to not cover areas or certain circumstances to save money to pay as little claims to save $$$ and satisfy their shareholders instead.

This is nothing new, life can be tough but we all have to continue to deal with it as best as we can.
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Old 11-28-2017, 08:03 AM
 
Location: Raleigh
6,952 posts, read 5,163,891 times
Reputation: 9369
Quote:
Originally Posted by OrganicSmallHome View Post
Risk of what? The house is located in a good neighborhood and has an alarm system. I'm mystified.
Risk that the toilet overflows or leaks and causes way more damage than if you were living there and knew to turn the water off to it and soak it up.

Risk that a wind/ice event does a little bit of roof damage that lets in a lot of water ruining your ceiling and drywall and causing mold.

That type of thing.
Quote:
Originally Posted by OrganicSmallHome View Post
I'm mystified because they knew that the property would not be occupied full-time when we first took out the policy, and that didn't seem to pose any problem. In any case, I'll clearly have to find another policy.
They re-evaluate segments of their business all the time. It could have simply been that they looked at insured, non-full time occupied homes and realized they routinely lost money on them, and cancelled that whole book of policies. Not a reflection of you or your home or neighborhood at all, but a decision based on the overall performance of the risk pool that your property resides in.
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