Am I in a Bind? Non-Renewal Notice with a Potential Claim
I received a letter from Erie Insurance a few weeks back stating that my broker is dropping them, and I need to secure new insurance. I’ve got a damaged chimney that I intended to have an adjuster assess to see if it might be covered. I noticed the damage a few months ago and was gathering quotes from brick masons before reaching out to my agent. Unfortunately, it took ages to find someone who could provide an estimate. I learned that the damage is structural, and the chimney will need to be taken down to the roofline and rebuilt, with a new lintel added. The estimate came in at $7,500. I’ve called my insurance agent several times, leaving messages, but I think I also need to address some water damage I suspect might be related to an older repair from when the chimney flashing and sheeting were replaced years ago.
Then, a few weeks ago, I got the notice that my policy is not renewing. I spoke to my broker and mentioned the possible claim (probably not the smartest thing to do), and it seems that if I file a claim with Erie, it will show up in the reports that new companies can access, leaving me with an open claim that hasn’t been resolved yet. I could just switch to a new insurance provider and hope they don’t do an inspection and find the chimney damage. Regardless, I need to have this fixed, and timing couldn’t be worse. If I can’t obtain a new policy due to existing damage, I risk a lapse in coverage that could really jeopardize me.
I’m looking for any advice here. My current plan is to possibly go ahead with a new claim and cross my fingers they don’t inspect, then pay out of pocket for the chimney repair and move on. Interestingly, my dad recently switched from Erie to Farmers, and as far as I know, they didn’t require an inspection.
It sounds like you’re in a tough spot, but there are a few avenues you can consider to navigate this situation. Here are some suggestions:
Understand the Non-Renewal Reason: First, clarify why Erie is non-renewing your policy. If it’s due to a specific issue (like the chimney), that could impact your ability to get coverage elsewhere.
Claim Process: Starting a claim can indeed show up on the industry’s loss history reports, which new insurers can access. However, if the damage was present before the non-renewal notice, it’s likely that declaring a claim may not negatively affect new applications as much as undisclosed pre-existing damage would.
Get the Chimney Inspected and Fixed: Before making a claim, you might want to have the chimney repaired as soon as possible if you can afford it. This way, the problem is resolved, and you won’t have to worry about it affecting your new policy.
Shop Around: It’s wise to get quotes from multiple insurers now. Some may not require an inspection; others might have different underwriting criteria. Be honest about the chimney’s condition when you’re discussing coverage with potential new insurers. It may be worth asking if they’d issue a policy without an inspection before you make a claim.
Consult With a Professional: If you can, talk to a public adjuster or insurance agent who is knowledgeable about the industry. They can help guide you on the best course of action regarding the claim, new policies, and how to disclose existing damage.
Timing: If you think you have time, consider fixing the chimney first, then shopping for a new policy. You might have to pay out of pocket initially, but it could prevent problems down the line.
Evaluate the Options: Weigh the risks of potential lapses in coverage against the costs and implications of disclosing the claim. Sometimes rolling the dice could be a viable strategy if you have the means to address any gaps in coverage.
Ultimately, it’s a matter of balancing the immediate necessity of having coverage with the practicality of managing the claim and repairs. Good luck!