How did this happen? You thought it was great, you pay all premiums and suddenly you get a letter, email or phone saying that the policy will be canceled. Can an insurance company cancel your policy?
Insurance companies are companies and very often people think that insurance will always be there. If you do not meet the conditions of the insurance company, they may terminate the contract. Insurers cope with risk, and being able to assess risks and avoid losses is part of how they survive as a company. Unfortunately, people have situations and circumstances that often go beyond the norm; Your insurance company may cancel you due to non-payment or insurance companies may consider the situation too risky and decide to cancel the policy.
What can I do if I have too many insurance claims?
You must put forward a strong argument to convince the insurance company to continue insuring you if you have a frequency of claims. One of the things you should do is review your claims. Make your own analysis of your situation by answering the following questions:
- How much was each claim worth?
- What was the nature of each claim?
- Were they related? For example, did they all cause water damage or fires? Were these completely unrelated incidents?
- Were all claims made at the same address?
- Has something changed that makes you “less risky”? Do you have a problem that you didn’t know was fixed (example: home repair)? Have you changed your lifestyle, work or personal situation? Have you updated the alarm system
How to fight for maintenance of insurance: present your case
The best argument is when you can prove that everything has changed.
- Maybe you have now moved to a new area and the claims were only in the old area?Think about every aspect of the claims you had, and see if there is something you can look out for, which shows the insurance company that your “risk” has improved or eliminated.
- Indicate any factors that may have changed, including the change in the household’s inhabitants, the reasons why you can be more stable (change of job, change of location, etc.)
- Make sure the information about you in the file is correct. Sometimes people make mistakes!
Provide proactive solutions that reduce or eliminate the risk of future claims.
If nothing has changed or “improved”, think about how to improve the situation. Have you been robbed twice? Maybe I will offer to install an alarm system.
Were all your claims below $ 1,000 or $ 5,000? Maybe ask your insurance company if they consider allowing you to take an even higher deductible, thus the risk you are concerned will begin to decrease. It is also a way to show them that you are ready to take additional risk and responsibility.
Ask the insurance company if there is a policy that they could offer as an alternative, for example, if all claims are due to water damage, perhaps they have a policy that they can offer that does not cover water damage? This would allow you to have basic insurance coverage instead of high-risk insurance or insurance.