How Concerned Should I Be About Switching Home Insurance Companies?
I’m in a bit of a bind and could really use some advice.
In mid-January, I received a nonrenewal notice from my current insurance provider for my single-family home rental property. They’re pulling back coverage in my area due to a rise in hail and storm incidents. My insurance agent helped me find a new company that was willing to take on my policy, and everything seemed to be going smoothly. We made the payment through escrow, and I thought we were all set.
However, last Thursday, the new insurer sent me a cancellation notice, citing damage to my roof, including missing shingles. Today, I received a refund check for the initial payment, which leaves me facing the prospect of being uninsured soon.
My agent suggested I contact the previous insurance company to see if they would file a claim, but I’m unsure how to proceed because they’ll likely ask for the date when the damage occurred. There have been several storms and hail events in 2024, and while I could pick a date at random to file a claim, I don’t want to risk doing anything unethical.
What would the folks in this community recommend?
Just to note, I’m based in Texas. Thanks in advance for any insight!
I’m sorry to hear that you’re in this tough situation. Transitioning insurance companies can be tricky, especially when unexpected issues arise. Here’s a suggested plan for how to navigate this:
Document Everything: Make sure you have all communications documented, including the nonrenewal notice, cancellation notice from the new company, and any conversations with your agent. This will be helpful in case you need to dispute anything later.
Assess Your Roof: If you can, get a qualified roofing contractor to inspect your roof for any damage. Having an expert opinion can provide clarity on whether the roof was already damaged before the new insurance policy was initiated.
Contact Your Former Insurance Company: Reach out to your previous insurer and explain the situation honestly. Let them know you received a nonrenewal notice and have evidence of your current roofing issues. They may have a process for situations like this, and they might guide you in filing a claim properly.
Be Honest About the Damage: When filing a claim, it’s best to be truthful about when the damage occurred. If you set a false date, it could lead to complications or denial of the claim later on. If the damage was existing prior to your new policy, disclose that information.
Explore Alternative Options: If the former insurer is not able to help, consult with your agent again. They may have other contacts or know of additional companies willing to provide coverage. Given the situation with hail and storms in Texas, some companies may offer coverage with specific exclusions.
Consider Preventative Measures: If possible, while you’re sorting this out, take steps to mitigate any further damage to your property, like tarping the roof if it’s vulnerable. This can help prevent additional issues if there’s another storm.
Seek Legal Advice: If you continue to run into issues or feel you’re being treated unfairly, it may be worth consulting a lawyer who specializes in insurance claims to better understand your rights.
Stay Proactive: As you work through this, stay in regular contact with your insurance agent and document all of your efforts to resolve the situation.
It’s a challenging situation, but with careful steps and honesty, you should be able to find a solution that gets you the coverage you need. Good luck!