I’ve had three claims within 5 yrs. My company says if I have another claim, they will have to drop me. I’ve been with this company for over 10 yrs.
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UPDATED: Feb 26, 2011
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Insurance Question from Eastlake, OH
Asked on 02/26/2011
I’ve had three claims within 5 yrs. My company says if I have another claim, they will have to drop me. I’ve been with this company for over 10 yrs. How many claims before a person can be dropped?
Answer given on February 27, 2011
Each insurance company has its own process for handling non renewals. However, most states allow non renewals for an “increased risk” and “excessive claims”. The definition of excessive claims is a subject for debate.
Most insurance companies have no problem if there is a loss every 5-8 years, no matter the cause. However, 3 in five years is going to raise a red flag to the underwriters. While you did not say what types of claims you had, and they could all be similar in nature or not, it is still seen as a problem by the company. Please remember, insurance companies want to make a profit, and the more frequent the losses, the less profit they make.
Sometimes, if you can come up with a way to avoid a similar loss, the insurance company will see that as your attempt to avoid losses. An example, if you have had theft losses, maybe you could install a burglar alarm. You get a credit for having a monitored alarm, it helps prevent future losses and shows the company that you are trying.
You should speak with your insurance agent to see if they can offer any ideas or assistance to you in helping present a better “profile” of your account.
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