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I was a customer for state farm for 30 years. I had two claims in 6 years on a rental house for hail damage.

They are now canceling my insurance. Both claims totaled 10,000.00. I have paid in over 20, 000.00 in premiums. My father warn me about state farm and said he will never go back and well I will never go back to state farm.

I am going with Nationwide. I hope that with the social media we can get this information out about state farm. I called my agent and she said well he have people who make a claim every 6 months. OK, but I am not that kind of person.

My agent said the will appeal the decision but that has been a week now and I have heard nothing.

So long State farm. I will listen to dad next time

Reason of review: Poor customer service.

Preferred solution: Let the company propose a solution.

I liked: Agent, Local agent is great.

I didn't like: Underwriter, Underwriter refusal to accept valid proof of correction, No email communication, Unfair billing practices, No policy in place for employee and clients, No customer loyalty.

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Statistically, rental dwelling properties produce about one claim every 10 years. Two claims in six years is much higher than the average risk most top insurance companies are willing to take on.

When they run your loss history report, you'll have a hard time finding a low cost carrier to take on this risk.

Rental properties are not the type of business most insurers want on their books. They're normally not profitable and usually only written as an accommodation to a longtime customer who is carrying profitable business with the same company.

The problem is not that you've paid in more than they've paid out, but the fact that what you've paid in was hardly pure profit.

Six years of premiums, minus the expenses to underwrite and service your policy and minus the amount that must be put into the policyholder protection fund. These are just a few of the deductions.

Based on your claim pattern, the next claim is right around the corner. They are trying to prevent that.

Your premiums are not a savings account.

If claims were based on what you paid in, then the less someone paid in, the less claim money would be paid out. Insurance claims are paid equally regardless of the amount of premium you have contributed. You could have paid $100, had a policy in force one day and have a $100,000 claim the next day and the insurance company would be responsible for paying it.

Insurance risk is a very complicated calculation. Your agent will appeal and the appeal will most likely be denied due to the future risk.

to Anonymous #1162450

Interesting, the first insurance company I called has agreed to provide insurance at around the same cost and same deductible. They were able to tell me what there policy is whiel I was on hold for less then a minute when deciding to cancel (they only go back three years) while state farm could not.

They only said that is up to the underwriter. I find this hard to believe that insurance risk is a very complicated calculation. You stated that I could of paid 100 for one day and had a claim for 100,000. The point is I have not and in thirty years I have had had five claims for four houses all hail damage.

(acts of god) As my agent said you have some who file a claim all the time and others that file a claim when ever their is an act of god such as hail damage. Out of my control. From the information I have found it pays to shop around. Customer loyalty is no longer there for big companies.

I had never shop around as I was a loyal customer to State Farm. Now I no better.

My advice to others look for hungry companies that still treat customers like customers.

to Anonymous #1162457

Make absolutely sure any company you are working with knows your claim history up front. It is not unusual for an agent to tell you one thing and it get to underwriting and you will find something totally different.

Agents want sales, underwriting wants very low risk.

Yes, most companies go back three years, including State Farm. Once insured, the claims that are counted against you are any that occur on the same policy. If you would have had one claim, per four policies, you would not be cancelled. It's the fact you turned in two claims on the same policy within such a short time frame (6 years is a short time frame on a rental property).

This makes this particular property high risk. I'm sure your cancellation letter is only for this property, not all of your properties.

Regardless of what the claim is for, money was paid out by the company, that's a loss to the company. Weather related or not, theft, water damage, liability, you always have a choice whether to involve the company.

Keep your deductibles high and your premiums will remain lower and do not turn in claims less than $5,000. Think of insurance as catastrophe coverage. It's designed to keep you out of bankruptcy or a huge financial bind.

Most of my customers with rental properties normally carry a $5,000 to $10,000 deductible.

Very rarely do they see an increase in their premiums or a cancellation. If your agent did not advise you about all of the above, you have an inexperience agent.

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