Appealing Cancellation of Home Insurance in Tyler TX
The recession has led to cost cutting in many areas, and the insurance industry is among them. Insurers have increasingly been adding exclusions to homeowner policies. Over the past couple of years, there’s been an increase in the rates of policy cancellation. It is surprising when a policy is canceled, or when a homeowner is rejected when it is time to renew a policy. Non-renewal for Home Insurance Tyler, TX may happen for several reasons, and could also happen for Commercial Insurance.
The most common reason is when the customer has received a huge reimbursement payout. This is epically true if the claim was made and the customer lives in a risky area prone to earthquakes, wildfires, or flooding. A second reason may be that the policy holder has made many claims. Even legitimate claims can cause a red flag. Insurers may simply cancel the policy and note the reason as a change in status. This can be confusing, because this description is used for just about any reason; maybe the insurer didn’t like a living situation or discovered a bad credit report. A call needs to be made to obtain clarification.
Homeowners have rights and are legally protected in the case of wrongful policy termination or a refusal to renew. If placed in this situation, it’s necessary to know what to do in order to appeal an unfair decision. Initially, the insurance company should be contacted and the customer ought to provide written reasons why the decision is being disputed. The insurer legally must supply an answer. If there is no response, or if it is not satisfactory, it’s time to involve the state insurance commissioner for an appeal. This office contacts the insurer and reviews all available information in order to decide if the reasons for termination are valid. Visit here Kit Parkhill Insurance Agency.
In the meantime, if the customer is left hanging without insurance, it is time to search for another provider. Another company may underwrite a policy, because each agency has different underwriting policies and standards. If not, the customer should check offers of insurers who guarantee Home Insurance Tyler, TX area coverage for high risk customers.