Mar 26, 2015 in Homeowner . 0 Comment
A loss leader is a service or item that costs the provider more cash than it brings in; grocery and clothing stores often offer sale prices to get customers in the door. Property policies are loss leaders for the insurance industry. To mitigate the red ink that results from claims payouts, many insurers have strict internal guidelines that trigger non-renewal or cancellation of homeowner policies. In this article, you’ll learn why policies are dropped, and what to do if yours is canceled or unrenewable.
Too Many Claims
Your insurance agent won’t tell you this, but if you suffer catastrophic damage or make too many claims in a three- to five-year period, your policy may be flagged for non-renewal. What constitutes too many? Only the insurance underwriters really know. Flags may be triggered by dollar amounts, severity of damage or number of claims. Therefore, only file claims that go well above your deductible, and keep your home in good repair to avoid damage.