What To Do If You Are Dropped By Your Homeowner Insurance Company

-link">provided supplemental flood insurance to
Find out what you should do if you are droppedhomeowners finding themselves in areas at
from your homeowner insurance policy becausehigh-risk for floods. As areas continue to develop
of either claims filed, or the company simplyresidential housing, so do flood plains and
moving out of the area. It's becoming easier fordefinitions of "high-risk" areas. Your home might
insurance companies to rationalize denyinghave shifted to a high-risk area without you even
homeowner claims and drop customers they canbeing aware of it, due to factors such as a rise in
reasonably predict will file a claim.impervious ground cover. If you're in this boat,
Have insurance companies lost their shirts this lastyou can access FEMA's National Flood Insurance
decade in payouts from hurricanes, terroristProgram at or through FEMA itself.
attacks, wild fires and tornados? Not necessarily,If, on the other hand, the reason listed on the
but such events have made it easier forcancellation notice has to do with claims previously
insurance companies to rationalize denyingfiled, make whatever efforts necessary to
homeowner claims and drop customers they canresolve your standing in the eyes of the industry.
reasonably predict will file a claim. So, what shouldYou don't necessarily have to have your roof
you do if you are dropped from your homeownerwholly replaced by the time you start shopping
insurance policy, either because of claims filed, orfor a new policy, but a documented good faith
because the company is simply moving out of theeffort to reconcile the reasons against you will go
area?far in the eyes of your new insurance provider.
Don't panic. You won't go uninsured. Depending onAlso make sure to take a look at your
the state or type of mortgage you might have,Comprehensive Loss Underwriting Exchange
you simply can't go uninsured. There are devices(CLUE) score, which is like a credit score for your
in place to help you get coverage, no matterinsurance history, and dispute anything on it you
what. If you receive notice that you are beingmight find falsely claimed. (You can do so for
dropped, you have a window of time before thatfree, once every 12 months, at
goes into effect; just be sure to use that timeYou might find yourself blacklisted for the number
wisely and shop around.of claims you've filed over the years, or because
On that same notice, the insurance company isyou live in a high-risk area. Again, realize that
required to state the specific reason you areindividual states have agencies in place to help out.
being dropped. If the company is moving out ofSeveral states participate in a program called
the area (either physical or coverage), then youFAIR, or Fair Access to Insurance Requirements,
should have little trouble finding another companyto cover those in the high-risk pool. Check with
to cover you. Check with your state insuranceyour state insurance regulatory department to
department for referrals to otherfind out whether you live in one of the FAIR
companieskeep in mind that this is a greatstates. If it's not a FAIR state, it might have
opportunity for you to get the exact homeowneranother similar policy that will cover you until you
insurance and home contents insurance you need.leave the high-risk pool. Just put the time into due
In other words, be sure to shop around.diligence and you won't be left stranded without
Due to disasters in recent years, the Federalhomeowner insurance.
Emergency Management Agency, or FEMA, has