| Judging by the title you would think I am a | | | | reason you slip through that step and they write |
| customer that got ripped off when he made a | | | | the policy you can still be cancelled for |
| homeowners claim, right? Well, that is not the | | | | misrepresentation if they find out later that you |
| case. I work for a major international insurance | | | | lied to secure the policy. That could be 5 or 10 |
| company. Actually, I work in a sales office for this | | | | years down the road after they have taken your |
| company. Prior to becoming a manager for this | | | | money for all those years. And, if you get |
| company I used to think insurance was meant to | | | | cancelled for misrepresentation it will happen |
| protect you in the event of a loss. I have learned | | | | before any claims are paid. |
| differently. | | | | There is no way to beat the system. Your |
| This may not be the case in all states, although I | | | | mortgage company requires you to have |
| think it is with my company, but if you make too | | | | insurance. Even if they didn't, who wants to see |
| many homeowners claims or one claim for a large | | | | their biggest investment burn to the ground and |
| amount of money you will most likely be | | | | get nothing for it. My recommendation to anyone |
| cancelled. Yes, that is right. If you use your | | | | reading this article would be to raise your |
| insurance for what it was intended for and for | | | | deductible as high as possible, make claims only |
| what you pay a premium for you will be cancelled | | | | when you absolutely need to, and very seriously |
| after the claim is paid. | | | | consider any endorsements you are offered. |
| Most people want the insurance in the event of a | | | | What I mean by that is, make sure you |
| big loss, like a fire burning the house to the | | | | completely understand what is covered. An |
| ground. This makes sense. But, some people insist | | | | example of this would be something like the |
| on carrying a low deductible such as $250 or | | | | Sump Pump/Water Back-up endorsement. This |
| $500. This increases the premium you pay for the | | | | endorsement will provide coverage in the event |
| policy but you really don't receive much added | | | | your sump pump breaks during a storm and |
| benefit because if you make too many claims for | | | | there is water damage in the basement as a |
| a couple hundred dollars you will still be cancelled in | | | | result. This does not cover everything in the |
| most cases. | | | | basement however. |
| Personally, I carry the largest deductible I can | | | | It will cover things such as the furnace, hot water |
| because it makes my premium as low as possible | | | | heater, and some appliances that would "belong" in |
| and I would only be making a claim if it were | | | | the basement. If you had a TV sitting down there |
| serious anyway. Where the situation gets even | | | | and it got destroyed you are out of luck. What is |
| more difficult is when you are cancelled for too | | | | even more interesting is the fact that when a |
| many claims or one big claim it is hard to get | | | | major storm is headed toward the area where I |
| another company to accept you for insurance. If | | | | work the company will not allow us to add this |
| a new company does take on your "risk" you will | | | | endorsement to a policy until the storm passes. |
| pay and arm and a leg for the policy. Out of | | | | As a consumer you really need to be sure you |
| desperation some people will try to lie and say | | | | listen to that famous saying, "Buyer Beware". |
| they had no losses. The companies combat this | | | | Make sure you are fully aware of what you are |
| by running a loss report on you, where all | | | | buying in all cases. If this example does not |
| companies report their losses to. If for some | | | | convince you of that I am not sure what will. |