Just curious - Policy cancellation

[Revconguy]

Jurisdiction

Alabama

Are there any limitations to how insurance companies terminate homeowners policies? Do they have to have a legitimate reason or can they just drop you at will? I had homeowners properties with State Farm for over 40 years on three properties. After my first claim, I received a letter stating they were terminating my coverage because of my unfenced swimming pool. Uh, I do not have and have never had a swimming pool. I even sent pictures of the properties. They continued to insist that my pool was a liability and dropped me. While I did pick up coverage elsewhere, it was a lot of work and increased my costs significantly.

 

[army judge]

I received a letter stating they were terminating my coverage because of my unfenced swimming pool. Uh, I do not have and have never had a swimming pool. I even sent pictures of the properties.

You can report the matter to the state insurance commissioner of Alabama.


The commission admonishes:

Before you file a request for assistance with the Alabama Department of Insurance, you should first contact the insurance company or producer in an effort to resolve the issue(s). If you do not receive a satisfactory response, then fill in the Online Consumer Complaint Form.

I believe you have done that.

Your prior correspondence should be sufficient proof that you have tried to resolve the issue.

It appears to me that if things as are you recite, the commission MIGHt be able to assist you.

This is the website:

ALDOI - File A Complaint

File a complaint:

Consumer Complaint Form - AL

Additional contact information:

Alabama Department of Insurance
P O Box 303351
Montgomery, AL 36130-3351

334-241-4141 8:00 am – 5:00 pm
334-240-4431 AFTER HOURS

Good luck to you.

 

[Revconguy]

Thank you!! Thank you for your time.

 

[adjusterjack]

Before you take the time to file a complaint you need to find out what the Alabama cancellation and non-renewal laws are.

Alabama has an auto insurance cancellation statute but I couldn't find one for homeowners insurance which means that the place to look is in your policy, where there is likely a page addressing cancellation and non-renewal.

I think you have been non-renewed, not cancelled.

 

[zddoodah]

I can't tell from your post whether your coverage was cancelled during a policy period or simply not renewed at the time of expiration of a policy. Which was it?

 

[adjusterjack]

An unfenced swimming pool is likely enough of a hazard that would allow an underwriter to cancel mid-term when the hazard was discovered.

What I don't get is why a State Farm agent who, presumably, is in daily contact with the underwriter, couldn't get the swimming pool thing resolved with a phone call.

If it was for a claim, it's more likely that non-renewal occurred.

 

[army judge]

After my first claim, I received a letter stating they were terminating my coverage because of my unfenced swimming pool.[


Uh, I do not have and have never had a swimming pool. I even sent pictures of the properties. They continued to insist that my pool was a liability and dropped me.

According to our OP ( @Revconguy ) :

He doesn't have a pool, fenced or unfenced.

He has NEVER had a pool.

He even sent pictures of his property to ILLUSTRATE there is no pool on his property.

Whether he was cancelled or simply "not renewed" has NOT been specifically addressed.

However, @Revconguy did post:

I received a letter stating they were terminating my coverage because of my unfenced swimming pool.

It can't hurt OP to discuss his concerns with the insurance commission, then file a complaint.

He is a taxpayer.

His taxes fund his state government.