Insurance Companies Canceling Policies Might Not Be a Bad Thing

Can a Insurance Company Deny a Claim?

I saw a segment on the news recently that highlighted a family whose insurance company had canceled their renters’ insurance policy. The family in question filed two claims against their policy over the holidays after burglars broke into their home before Christmas and again just before New Year’s. As a result, their insurer dropped them. Of course, the timing was horrible, and the local media covered the story exhaustively. But I’m glad the insurance company canceled their policy, and you should be happy, too. Here’s why: What are the odds of a family having two robberies in such a short span of time? It’s very unlikely. In fact, such unusual circumstances are strong warnings of potential fraud. And while I don’t … Read more

Insurance Companies Can Easily Spot Fraudulent Insurance Claims

Fraudulent Insurance Claims Are Easily Spotted

Spotting fraudulent insurance claims is an important job for most insurance companies. The mounting losses from false and fraudulent insurance claims reported by customers can reach into the billions of dollars each year. Money lost from fraudulent insurance claims comes directly out of the insurance companies’ coffers and results in an overall insurance cost increase for honest customers. Many people mistakenly think that they can get away with filing a false claim, but the insurance industry watches claims meticulously. Insurance companies in the United States watch for suspicious indicators in order to help them prevent losses from fraudulent insurance claims cases. For example, an insurance company may conduct additional investigations before paying out a suspicious claim if the policyholder has a high debt … Read more

Not Living At Home? You May Need Vacant Home Insurance

You May Need Vacant Home Insurance

You may need vacant home insuranceI didn’t realize that my wife and I may need vacant home insurance after deciding to become landlords until a family member mentioned it. You are at risk of violating your homeowner’s insurance policy if you move out, no one is living in your home, and you do not have the right insurance coverage.

You run the risk of having a claim denied because you did not keep your insurance company informed of changes to your situation.

What Is Vacant Home Insurance?

Vacant home insurance is just what it sounds like. When you move out of your home and it has been vacant for over 30 days in most cases (60 days with some insurers), you need to have a different type of homeowner’s insurance policy protecting your structure.

Vacant homes are often the target of vandals, thieves, and other criminals. And, vacant homes are also subject to burst pipes, flooding, and possibly fire without you realizing it because you are not there to check on your property.

Vacant home insurance is often a higher cost than your typical homeowner’s insurance that you have been paying while actually living in the home. Do not make the mistake of not informing your insurance company of the change.

Doing so can be grounds for denying a claim if you have to file one. Or, you could even face a cancelation of your homeowner’s insurance policy.

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