Homeowners Insurance Canceled–Is it even legal???

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Aug 12, 2015

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Insurance Question from Portland, OR

Asked on 08/12/2015

Homeowners Insurance Canceled–Is it even legal??? I have had State Farm for my homeowners insurance for more almost 10 years. I had a personal property loss claim in 12/2012 when I was robbed while traveling in Minnesota. And we filed another personal property claim in 02/2015 for the loss of my husband's wedding ring. They sent me a letter a few months ago say that my policy would cancel in September of this year. Is this legal? No one advised me against filing a claim for these and I thought that was what insurance was for. I even pay extra for jewelry in case one of our wedding rings were lost or stolen.

Answer given on August 22, 2015

Insurance companies all have different ways of dealing with multiple losses under the homeowner coverage. If you have been with State Farm as long as you say and suffered a claim in 2012 and again in 2015 it seems odd that the insurance company would take this action unless there were previous claims under the policy.You should contact your agent to ask them to explain why you are being non renewed for these losses. Ask them to contact the underwriter and see if something else can be done besides the non renewal. Since the losses were under different areas of the policy – contents and then scheduled articles there does not seem to be any pattern. Hopefully your agent will work on your behalf to get this cleared up.If the non renewal stands, you will have difficulty obtaining a replacement policy since you will have two losses within 3 years. You may have to have a higher deductible and it is possible that you will not be able to schedule jewelry under the new policy. There are “stand alone” policies for scheduled articles but they usually have a deductible and the costs are higher.

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