• Insurance Carrier: Travelers
  • State: KS

Consumer Complaint:

From August 2007 until July 2008 we dealt with an insurance company through litigation to pay a claim. Once we had our home repaired from the loss, my husband made calls to other insurance carriers and he decided to go with Travelers. He explained everything to the agent; the agent said there wouldn’t be a problem to get insurance from them. We received the policy with an account number and then received a letter within days for notice of cancellation. When we received the policy, my husband canceled the insurance coverage that we were covered under at that time because he thought we were covered by a new company. We still have a mortgage and we are now without insurance trying to still find an insurance company. How can a company do this? Is there anything we can do?

Insurance Expert Answer:

As a general rule, the underwriters at insurance companies don't like to insure houses that have had problems as there are above average correlations between the existence of a claim loss from a home and the likelihood that a second claim will later arise from that home. Further, as a general rule, underwriters are not too keen on insurance people who sue insurance companies, fearing they'd be next. Agents don't care -- they earn their commission regardless. Contact your state's insurance department and ask.