State Farm Insurance - Non Renewal of Home Owners Insurance

Issue not resolved

Let me begin by stating I have been with State Farm for over 25 years. I have every policy possible through State Farm, including Auto, Personal, Homeowners, Short and Long Term Disability, Personal Articles, and Life Insurance for myself, my wife, and all 4 of my children. I have referred my immediate and extended family members to State Farm. Many of my friends have also gotten insurance through State Farm from my referral. State Farm has made so much money off of my family, friends and the numerous referrals. During the last two years, I had to place three HOI claims and each claim was classified as CATOSTROPHIC due to natural disasters. The claims were as follows: May 14, 2010 Thunder Storm ( Hail Damage), August 28, 2011 Hurricane Irene (Flood Damage), and September 07, 2011 Tropical Storm Lee (Wind Damage. I've attached a link which describes the events that occurred where I live in Charles County, Maryland during those months mentioned.

http://www.thebaynet.com/news/index.cfm/fa/views September, I received a letter and a phone call from my Agent that I've known and have been with for over 25 years to inform me that my Home Owners Insurance (HOI) policy will not be renewed because I had made 3 claims in 3 years. It's shameful that they would not keep me on as a valued and loyal customer. It is shameful that State Farm would drop me after all the money I have paid them and all the referrals I have made to them and the money that have made off of them.

Let me be clear that at no time during the claim process did any State Farm representative or my Agent make me aware that my HOI was in jeopardy because I was filing claims. There is nothing in my contract that states that if I made claims that were caused by inclement weather that my policy could potentially not be renewed or my premiums would increase. I was always under the assumption that if I caused the damage and filed a claim then yes my premiums could potentially go up and or not be renewed; that pretty much goes without saying. I purchased my first home in 1995 and occupied until 2000 which was a town home in which State Farm held the HOI, my second home was a single family that I purchased in 2000 and am currently occupying now which State Farm holds the HOI. I also have investment properties that State Farm holds the HOI. With that said I have paid a great deal of money to State Farm over the years and referred a lot of business to them. Even though I expressed this to my State Farm Agent, he stated that Under Writing would not reverse their stance on this issue.

Can someone tell me who above my Agent and the Under Writer that I can complain and express my discontent with? Is there also an outside agency that could help with this Unfair Practice?

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The Insurance Girl

Oct 17

Ok a lot of you have this really bad idea in your head that you pay x amount of premiums for x amount of policies. Just because they non renew auto or home. You can still keep auto or home.. If you file 3 claims in a short span, like lets say THREE home claims (which is ridiculous), they probably paid about $75k in CLAIMS. You probably didn't have that money!!! And State Farm was there every year you paid your $2,000 a year. (for ten years you only paid $20,000 in insurance), insurance is a business. If you put in $1 and expect to get $3 back I think you're better off in a casino. State Farm is good for real clients who aren't out there to file claims every year. Don't complain about your premiums being too high when the insurance company has already paid over double the premiums you've paid in your life time. Insurance is about LIABILITY. If you're a risk, they don't want you!!! State Farm is the #1 in claims, I see NONE of you talking about State Farm ever rejecting a claim. Try another insurance company and every time you file a claim I bet they will deny the claim. Also, State Farm doesn't care how long you have been with them, sure you've paid them a ton of money throughout the years, but the only reason an underwriter will non renew you is because you're just a risk and they are licensed professions out there to watch out for the company's benefit. You will NEVER speak to an underwriter. Agents will ALWAYS speak to you. Agents will always call an underwriter for you,... Show more

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Aggravated in NJ

Sep 13

I had State Farm homeowners and car for 23 years. We filed a dog *** liability claim 1.5 years back and received a non renewal forcing us into the state high risk pool. To add insult to injury I received a bill today with no explanation for an adjustment to my auto premium which I assume was prorated discount due to home and auto coverage. My agent lied to the State Insurance regulators when I filed a complaint after the non renewal. State Farm I a greedy organization with no interest in their customers. A class action suit is the only way to change their habits.

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Info

Sep 14

Dog *** liability claims only generate a non-renewal when you refuse to get rid of the liability (the dog). Why would any insurance company keep a proven risk on the books? Every bit of premium you have ever paid could be lost in one dog *** case. As for your rate increase, yes, you lost your multi line discount. You no longer qualify for it. Pretty simple.

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Cookcounty

Jun 14 Cicero, Illinois

In 2013 I filed for wind/hail and they paid out $26,000. I filed a claim in 2010 for wind/hail damage. The estimate was over $10,000. So we filed a claim, it came back that we didn't have damage all over and they would cover $1076, our deductible was $1000. We had no way of knowing that would be the result of the adjuster cuz otherwise we would of paid it instead of filing a claim, they didn't even give us a chance to say we would pay out of pocket, that $76 check was in my mailbox the very next after the adjuster came. In 1997 I lost a diamond earring, called them to start a claim but then a found it a few days later. Nothing was paid out cuz I didn't need it. Now I get a notice of non-renewal listing all 3 incidents. The last 2 I can see, but the 1997 claim should not be on there cuz there was never a claim.

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In the Know

Jun 15

What you're failing to understand is that you have told the insurance company you had three losses and didn't mind turning it over to them immediately. That's how they view it. You're a high risk because you turn to the insurance company more frequently than the majority of their clients. Statistically, most customers have one loss every 10-12 years. You've proven to them you have had 3 losses in 16 years. Regardless of the amount paid out, you've told them you're calling them whenever you have a loss. They're looking at your FUTURE risk. They're cutting the FUTURE losses from you now.
Don't call your insurance company before you have determined exactly what you're claim is going to result in. Every notification of a loss is recorded in order to weigh the risk of keeping you on the books. Sorry, it's cold and calculating, but it's how ALL insurance companies work. You're agent should have explained this to you at the time of the application and certainly after the first and/or at least the second notification of a loss.

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Pissed Off Homeowner

Sep 04

I've been non-renewed by American Family Insurance after 2 hail claims in 2 1/2 years and 20 years of service with the company. NEVER did my agent warn me. I'm 54 and have not had to deal with insurance claims much over the years but my guess is that most agents keep this to themselves in fear of US dropping THEM. The entire industry is a scam.

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Info

Sep 04

An agent never wins by failing to disclose this info. As a consumer, you aren't going to leave because you won't find a company out there that doesn't work this way. It's the industry in general. Once you've had the claims, you won't find a company that will take you other than the state specific high risk pool. Meet with your agent every year. They are on your side.

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Jim

Nov 07, 2013

Just had the same non renewal issue. State Farm had my home, boat, two auto's and flood insurance. We had a 2900.00 claim with 1% deductible or $2,200.00, which left them with roughly an $800.00 exposure. When the claim was opened they DID NOT explain the consequences of non renewal or I would have paid the full claim out of pocket. In my view they are letting their underwriting dept dictate business decisions, after all between all policy's I was paying in some 4K a year! Further the REALLY big issue is the fact they when they fail to renew based on "claim activity", they are in effect placing you in a high risk pool for other insurer's to rate your new policy, all the while offering NO way for the consumer to rebut their reason for non renewal. They are in affect in the business to harvest premiums, NOT cover their insured for the long term.

Apparently there are many across the US with the same State Farm issue that befell me and on the surface this screams out "CLASS ACTION LAWSUIT"!

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Anonymous

Jun 28, 2013 Cleveland, Ohio

That doesn't seem right. When a claim is filed under a weather related incident (such as hurricane, tornado, hail, etc) it isn't your insurance company who ends up footing that bill. It is usually the national disaster relief fund that funds it. That's WHY your premiums don't go up after such a claim. Same goes for if someone ELSE does damage to your property and your insurance company sues (subrogation) the one who did the damage. Those filings did not cost your insurance company, as your insurance company would have been reimbursed! I know, I've been there twice. We suffered damage from a hail storm. It was covered under the disaster relief fund. We also suffered damage from the contractor who fixed our roof. They didn't load the shingles right on our roof causing significant structural damages to the home. In that instance, my insurance company took them to court and won all the funds back, and REFUNDED us our deductible!

Both times I asked how this would effect my insurance, and they said it wouldn't. What a shame you are having to deal with this.

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In the biz

Jun 28, 2013

Dear Anonymous,
You are sadly mistaken if you believe the National Disaster Relief Fund is there to reimburse insurance companies. That is simply untrue. National Disaster Relief Funds are provided by the government to provide emergency funds for the states and some offer low interest rate loans to citizens. Insurance companies foot the bills for claims made to them and YES, all claims count against a customer. Any agent (and I have been one for over 24 years) who tells you a storm claim won't count against you either has very little experience with claims or basically lied to you. Anytime an insurance company must pay money out, it becomes a record against you. As for subrogation, yes, if the money is reimbursed to the insurance company that had to pay it out, that will be erased from your record and will not be counted against you. Please understand insurance companies foot the bill during disasters. So much so, that there are many who have gone under due to extreme disasters and failed to have enough in their policyholder protection fund. Those funds are set aside only for claims. That fund is mandated by the National Association of Insurance Commissioners. The amount of money kept in those funds is placed there based on the market share that a company has. The smaller a company, the less money in their policyholder protection fund. Who bails them out when they run out of money? They go broke and claims go unpaid. Educate yourself about insurance companies. They
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Pissed Off Homeowner

Sep 04

Oh, they profit all right! After being NR'ed by American Family, my agent told me the CEO got a 6 million dollar bonus this year. Insurance is a legal scam.

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dpalesano56

May 13, 2013 Chickasha, Oklahoma

I was insured by State Farm for several(over 15) years we had a total loss tornado, couln't even find a piece of furniture. they paid our claim, then promptly cancelled us, it made it nearly impossible to find a new provider , we finally did at 15 times the cost. I do not recommend State farm, they screwed us royally.It was our second claim in 3 years, the other for minor hail damage-less than 2500.we also lost our business, which we thought was insured, but it wasn't... that is our own fault,but it sure leaves a bitter taste.

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Anonymous

May 06, 2013 Richardson, Texas

Let me just inform you of this fact.It does not matter how long you have been with "State Farm"If you file (3)Claim's period "State Farm" Will drop you as a customer.They do not care about you being "Loyal and Paying on time".Three strike's and You are out period.Go with "AllState"They are very good"and I have never had anytype of problem's with them.

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forget allstate

May 26, 2013

You are wrong, Allstate is badddddddddd....they say they go to subrogation and fight aggressively....no they don't ....they just submit an estimate of your damages to the arbitrators and you lose----that is not enough to prove you were damaged by your neighbors' trees. and then they tell you to go to small claims court by yourself.....

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Housewife

Jun 11, 2013 Brooklyn, New York

Don't try Allstate! Same situation been with them for 10 years and in the past 2 years had 2 windstorm claims and one other pipe burst paying out 136.00 dollars all combines not even 4000. and we recived a non renewal. Cant find coverage elsewhere what do you do

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Insurance puts us in touch spo

Jun 11, 2013 New Orleans, Louisiana

I had State Farm Insurance since 1968!! When we lost our homes in Hurricane Katrina, there were NO insurance companies available for coverage because the Insurance Commissioners of several southern states decided the risk was too great for their coverage. We were insured with a "2-5% Named Storm" deductible, which up until the storm, was never applied to our coverage.
I have never understood why places like California with their wildfires, earthquakes, landslides, etc. or any other states facing different peril didn't have to agree to just to get a basic coverage for HOI.
Now that Hurricane Sandy has taken out some of the areas in the north, good luck in getting coverage. You may have to resort to the kind of coverage we had to settle for, high premiums, high deductables, and low coverage!

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Advice

Jun 12, 2013

Here's what you do...stop relying on insurance policies to be your home maintenance plan. Why would you turn in a claim resulting in $136.00? Homeowners insurance is designed to cover CATASTROPHIES that could result in MAJOR financial loss. It's there to restore your home in the event it is uninhabitable or the damage is such that you would have an extremely hard time paying out of pocket for the restoration. NEVER turn in a claim that is less than $2,500. I carry a $5,000 deductible and would carry a higher one if my mortgage company would allow me to.

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Allison64

May 06, 2013 Marietta, Georgia

I'm confused on SF's claim's process. Two years ago we filed a claim for gutter replacement after an ice storm. We had never filed a claim before. Last week our dishwasher broke and leaked water into the living room, ruining the manufactured wood floor. State Farm informed me that our premium would automatically increase by $300 a year for three years if we filed a new claim. This was after the agent told me that the first claim is a 'freebie,' and that you are essentially allowed three claims within three years. What's the story? Is she mistaken? Why the premium increase after the second claim?

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Loyal paing Customer

Apr 24, 2013 Long Grove, Illinois

State Farm has been threatening their customers on a regular basis since 2008. I have everything with them, 4 autos, my home, two rental properties, personal umberella, and personal articles policy. I pay them a little over ten thousand a year in premiums, but I have been told since I had a flood claim in 2008 that if I claimed the flood from this year 2013 that I would be dropped. What kind of insurance is this?? YOu pay in but can't file a claim if something happens or they will drop you.

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SB -

Feb 28, 2013 Talent, Oregon

State Farm is non-renewing my home owner's insurance and I have been with them over 20 years. I had 2 claims over 3 years - both water damage due to different causes... total amounts were $2000 and $6000 respectively. Not big losses for them. Know someone else that was on-renewed without a claim!! What's going on? What a racket this is!
If you are over 50 and can join AARP, you can get insurance through them that has a clause saying they will never cancel or non-renew after a claim. I am changing to Hartford with AARP. But must be age 50 or over.

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