Adverse Loss Experience and Insurance Cancellation
We were hit by lightening two years ago. Our house was a mess. We lost some major appliances, computers, tv's and our house alarm system, among other items. We cooperated with our insurance company. All their specialist adjusters came out and checked each item and all agreed these things were not fixable. We have had this company for 13 years and have never been late on our payments. This was our only claim.
I recently got a letter from them saying that they would be cancelling our insurance because we had this claim. Their specific reason for non re-newal is : Adverse Loss Experience. My question is: is this legal for them to do?
The bad news for you is that this is definitely legal. In fact, if an insurer is trying to improve their financial performance, one of the best ways for them to do this is to cancel the insurance of those who make claims. After all, claims cost them money -- even though this is exactly what you have insurance for.
Here's what I suggest you do. Get in touch with your Department of Insurance. Find out if there is anything that they can do for you. Can they pressure the insurer to continue with your insurance? Can they mediate this situation? Or can you pressure the insurer by filing a complaint and making your experience public? I suspect you won't get satisfaction unless you become the squeaky wheel.