• Insurance Carrier: Merrimack Mutual Insurance
  • State: ME

Consumer Complaint:

In June of 2008 the condensor on our central air cracked and flooded our basement. The insurer refused to replace the furnace, which was flooded. Now they have cancelled our insurance and we are unable to get new coverage. They paid out half of the estimated damage and we are stuck holding the bill with no coverage!

Insurance Expert Answer:

There are 2 separate issues. On the non-renewal of your policy, you bought a 1 year policy and were free to drop it at any time. You did not marry the insurance company until death do you part. So long as it did not base its actions on illegal grounds -- race, sex, religion, etc. -- the company need not renew unless your state's law required them to continue the policy regardless, although in every state there are provisions for notice that must be adhered to. As a matter of experience, insurers try to cull what they regard as higher than average risks, both people and policyholders. If your home is in a potential hurricane area, such as near Cape Cod or Cape Ann, that could be another basis for non-renewal. The second issue is you still are entitled to have any claim incurred properly paid. We suggest you consider hiring a public adjuster if it's not too late. The public adjuster works for you and is typically a former insurance company adjuster so s/he generally knows all the angles. Good luck!