UPDATE-HO3 Policy Claim

[mandoo500]

In my previous post titled "HO3 Policy Claim", I wrote about water damage to a property due to heavy rain storm. Now the adjuster sent in a net loss amount little over 10k. The current carrier in the meantime sent out a cancellation notice claiming that the property was vacant and even though it is not, they will not renew it because of the claim.

So...I went back to my general agent and was told that because the claim exceeds 10k, the only market available would be a surplus line. The premium doubled and the client is upset...go figure. Anyways, I was hoping to get some help again from all you insurance guru's.

Does anyone know if Allstate or State Farm will take this case? If so, will the premium be less than $3200 for $380k coverage in Queens, NYC?

Thanks again.

 

[djs]

Did they cancel or just non-renew? These are 2 very different terms.

A non-renewal can be stopped by fixing the damage. I've dealt with this several times. It doesn't surprise me a bit.

A cancellation would be a different story. Not sure how or why they would cancel due to a claim. I don't know New York law though, so this is very unique to me.

In short, a 10K claim that has unrepaired damage will cause great difficulty in placing the risk. A single claim, that has been repaired, will cause some carriers to shy away, but can easily be placed, if the risk was in California. Again, I know nothing about New York.

I can't really say much about the rates.

Dan

 

[FLInsa]

You could try an HO8 policy. Not the best solution, but you may want to at least the your client know that that is an option.

 

[joshb]

I'm curious as to know what exactly the cancelation notice said for the reason. If the reason the home is vacant and you can provide proof that it isn't/wasn't the carrier doesn't have much to stand on. I do not know new York bur in Florida vacant homes are everywhere so this is a hot topic for us too. I have had to take interior pictures and send them to the carriers to show proof the home wasn't vacant and got the policy reinstated. I can't see why this would be different there.

 

[markschneider86]

Wow rates are insane in New York.... You should be able to get your client into a beefed up DP-3... But also like DJS said, are they canceling or non-renewing?