State Farm Canceling my homeowners over 1 claim in 4 years

Been going back and forth with these guys , We bought this house 4 years ago now we are being canceled because we filed a claim they had to pay for . Got a letter saying due to our claim activity they will not renew our homeowners but will continue our car WTF ?

We had 1 claim last year for busted pipes in the kitchen ceiling one paid claim in 4 years (we did file one for damaged property during the move that they paid 0 " State farm isn't cheap . This should be illegal I bought a product and used the product only to be dropped for using the product ?????????

They pulled out of Cali because of wildfires now they are targeting the Mideast because they lost a whole lot from tornados . Not a good business prospective - Just Pay your bill and say you have insurance , If you file a claim we will fight you tooth and nail to not pay if we have to pay we just will not renew you .

How is this legal ? Is there a State agency I can contact I'm so peed im about to sue .

Just spreading info do not choose State Farm they want your payments but not your claims .

a reply to: Ravenwatcher

Contact your State Attorney General and file a complaint with them.

a reply to: Ravenwatcher

I’ve been told by industry insiders that State Farm is one of the worst carriers.

Actually, any insurance company with massive advertising campaigns ( mainly tv commercials ) are usually horrible when it comes to making claims.

a reply to: Ravenwatcher

There should be a State "department of insurance" and/or a State "Insurance Commissioner" available with whom you could file a complaint.


Many insurance companies are withdrawing from coverage, especially with regard to homeowners policies; most cite increased costs due to weather-related losses. I would not doubt that the increasing number of renters, as opposed to homeowners, is making it radically less profitable, in terms of policy premiums collected, to service the homeowner insurance market.

I had to file a homeowners claim last year due to storm damage (California wind storms in January 2023). Fortunately, the federal government declared the storm damage throughout the state to be worthy of "Disaster" status.

As a declared disaster, my policy carrier (AAA of California) sent out an adjuster within a few days and paid the claim within a couple of weeks. Best part is that, as a "disaster claim" the insurer is prohibited from increasing my premium.

And they have renewed my coverage.


But who knows what the future holds...

originally posted by: DAVID64
a reply to: Ravenwatcher

Contact your State Attorney General and file a complaint with them.

and contact the....

www.forbes.com...

a reply to: Ravenwatcher

Weather related insurance claims have topped 100 Billion $ per year for each of the last 3 years. 15 years ago, the claims never topped 50 Billion $ per year. So they're paying out more than twice as much in claims as they used to but in most cases the rates they charge have not gone up proportionally because rate hikes are usually controlled by state regulators. They're losing money and will go bankrupt unless they can increase the rates they charge or get rid of the highest risk policies (or some combination of both). Since they can't get the state regulators to increase rates as fast as the volume of claims is increasing, the only thing they can do quickly is shed the highest risk policies.

a reply to: Ravenwatcher

This should be illegal I bought a product and used the product only to be dropped for using the product ?????????

You bought a mandated service to uphold your contract with the mortgage company.

Remember, these insurance companies don't make revenues in the hundreds of billions by paying out....

The whole thing is a racket as old as time.

a reply to: Ravenwatcher

There's not much that you can do. These insurance companies are scammers.

File complaints with regulatory agencies in your state. Speak with your state and federal representatives. Maybe they can grill the insurance company on capital hill.

Its hit or miss, my dad was dropped after 1 claim in 30 years, I wasnt dropped after a claim on my roof and 2 cars after a major hail storm.

*shrugs* seems to depend on the state you live in and how many claims are filed annually. (pure speculation on my part)

I had State Farm auto insurance for four years. I had an "at fault" fender-bender. They paid $1300 for the claimants truck, none for mine (didn't need it), and then dropped me for it. I was a bit surprised because $1300 is a very low damage total, and my $100 a month over the last four years had easily covered it. Like you, it was my first and only claim with them.

I guess that's the game they play, though. We pay simply for the privilege of having insurance, we are not supposed to actually use it.

State Farm and Allstate used to be about the same price, with high-quality service, and customer loyalty/appreciation.

State Farm has not "modernized" like Allstate, however. Allstate still has loyalty, decent customer service, and it cost less too.

My town had a big hail storm a couple years ago and my insurance broker told me that he had a lot of people asking for quotes because their insurance company was cancelling homeowner policies after repairs were paid for.

a reply to: Ravenwatcher

Heard they've cancelled are aren't inssuing new policies. Too many "natural disasters". California especially.

The only reason I carry homeowners insurance is for the liability coverage. If somebody gets hurt on my property I do want the protection. I'm under no illusions that I'd be with the company after one claim even though I've been with them 20-plus years. Of course, my mortgage required it, but it was paid off several years ago. I try to keep enough funds around to cover most events.

I once had an insurance agent tell me that some people tend to use a homeowner's policy as a service plan to cover minor issues. Those are the ones they try to avoid if they have a history of doing that.

Also the BBB (Better Business Bureau), their system allows you to view all complaints and file your own in seconds and EVERYONE checks out the BBB when making decisions so they like to keep the place clean of disagreements.

a reply to: Ravenwatcher
Thanks for the heads up. Wanted to change from SF a while now, never got around to it. But will now. If they drop you instantly it's like not being insured really so no use.

And that’s why insurance is a gamble. You pay in good faith that they will pay.

It’s the lowest form of theft.

a reply to: Ravenwatcher

a reply to: Dalamax

I tend to agree that insurance is also a scam.

They never pay out what they are supposed to, and there is always excess or whatnot to shell out yourself.

Another one would be the TV license fee, but that's only here in the UK.

a reply to: Ravenwatcher

They probably use a risk analysis program and return on investment in their decisions. Your claim must have exceeded your annual premiums plus future profits from them. I.e. how many years of your insurance payments will cover their investment loss. Then add in the probability of another claim, against what kind of house or age of your house into the factor, I’m sure some claim adjuster will chime in here.

Also you filed a moving claim, wether or not they paid for it is besides the point, you are high risk to them.

Insurance companies are not non-profits or charities. They cannot continue to pay out more than they take in. That's why rates go up in high claims areas. Try getting homeowners insurance in Florida's coastal areas. Same thing is happening now in the west with forest fires, and east of the Rockies with hail and wind damage. Claim payouts go up, that money has to come from somewhere or the insurance company goes out of business. Either rates go up to offset losses or companies no longer offer coverage.

Every state has some sort of oversight of insurance. I believe companies have to file their rates with the state, which makes them public records. They also have to get state approval for rate increases, also public record. Insurance companies aren't free to raise rates whenever they feel like it, they need approval from the state commissioners. If they can't get approval for an increase large enough to offset losses they'll pull out of a state, or area, or demographic.

An insurance policy is a contract. A contract is a legal agreement between the insurer and the insured. It is legally binding. If you enter into a contract it's on you to read and understand what you're agreeing to. If you don't understand the terms of a contract, find someone to explain them to you (probably shouldn't be the agent for the other party).