What canI do if my insurer keeps denying my claims and as now threatened to cancel my policy?

I have had 2 claims on my home for roof damage in the claims were denied. Now the water spot on my ceiling from the first claim is getting worse. What are my options? I talked to my insurance company about a leak today and they told me that if I make a third claim they will can cancel my homeowner’s insurance even though they denied our previous claims.

Asked on July 26, 2010 under Insurance Law, Georgia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You should consult with an attorney; bring copies of your policy and also previous claims. If the policy gives your insurer the right to cancel at any time and/or for any reason, there may be nothing you can do--if they contractually have that right or discretion, they may exercise it. If however the policy requires cause for dropping you, you may be able to challenge it. An attorney can help you understand the terms in your policy relating to termination. (Note: it's common for insurers to have broad right to terminate.)

In addition, you have a right to challenge the insurer's determination as to whether to pay for  previous or existing claims. Insurers are bound by the terms of their policies and also by a duty of good faith; if you honestly believe that the claims you've submitted are within the terms of coverage, you should also discuss with your lawyer whether you should appeal the decision to the insurer's internal appeals processes, or perhaps instead file a lawsuit.

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