The hits just keep on coming…
To review, we had a house fire in December. Last week, our insurance company sent us a Dear John letter saying that they were dropping our coverage.
Here’s where it gets fun:
Because we have an open claim, no other insurance company will pick us up.
Because of our new “high risk” status, the only companies that will pick us up AFTER the claim is closed are the “high-risk/surplus” companies, who will double or triple our premium.
In the current economy, the old “three strikes you’re out” insurance rule is now “one strike you’re out.”
We’ve had three total claims on our homeowners insurance since 2005, two small ones (a few hundred each time, one for a small liability and one for storm damage) and this enormous one. Yes, our insurance company “lost the bet” that we wouldn’t have a house fire. However, we’ve always taken every step we could to reduce risk; the liability issue was resolved and will never recur and the storm damage one was used to pay for repairs that will mean that similar damage doesn’t occur again. The house fire was the result of an ice storm and loss of power. Obviously, in hindsight, we should have bitten the bullet several years ago and not submitted the claims, but honestly (from what our insurance guy has told us) they probably would have dropped us after the fire even if it had only been that one claim.
So now we are trying to appeal to the state’s insurance commission to squeeze one more year out of our current provider, to enable us to get the claim closed and set aside some money to pay for higher premiums.
If anyone has any magical insights on the whole process or ideas on how to frame such an appeal, you would seriously make my weekend (and lower Doug’s blood pressure by twenty or thirty points).