Am I in Trouble? Facing Non-Renewal with a Possible Claim
A few weeks ago, I received a letter from Erie Insurance informing me that my broker was dropping them, meaning I need to find new coverage. I’ve been dealing with a damaged chimney that I planned to have an adjuster assess to determine if it’s covered under my current policy. I noticed the damage months back but wanted to get some estimates from masons first. Unfortunately, it took forever to find someone who could provide a quote. The assessment revealed that it’s a structural issue and that the chimney needs to be removed down to the roofline and rebuilt, which will cost around $7,500.
I’ve tried reaching out to my insurance agent multiple times but haven’t had much luck. I suspect there’s some water damage under the roof, but it may be related to an old repair from when I had the chimney flashing and sheeting done years ago.
Recently, I received a notice that my policy won’t be renewed. I discussed the potential claim with my broker (which may have been a mistake), and they informed me that if I file a claim with Erie, it will show up on the new company’s reports as an open claim without resolution. Alternatively, I could switch to a new policy and hope they don’t conduct an inspection that reveals the chimney damage. I really need to get this issue resolved, but the timing is problematic. If I can’t secure a new policy due to the existing damage, I risk having a lapse in coverage, which could complicate things further.
I’m looking for advice. Should I file a claim and take my chances on no inspection, or would it be better to pay for the chimney repair out of pocket and seek a new policy? My dad recently moved from Erie to Farmer’s, and to my knowledge, they didn’t require any inspection.
It sounds like you’re in a tricky situation, and it’s understandable to feel overwhelmed. Here are some thoughts and advice to consider:
Understand the New Policy Requirements: Before making any decisions, reach out to potential new insurance providers to ask about their requirement for inspections and handling of existing damage. Each insurer has different policies, and it might help you understand your options better.
Consult with Your Broker: Since you’re already in touch with your broker, keep them updated about your concerns. They may have insights into how different insurers handle situations like yours and can guide you to companies that might be more lenient or have better policies regarding inspections.
Consider the Claim: Starting a claim could indeed complicate things, as you noted, because it would be documented and might affect future coverage. However, if the chimney is in need of urgent repair, getting the insurance involved (if it is covered) might save you money in the long run. Discuss with your broker or a claims adjuster about the potential outcomes of filing a claim.
Address the Damage Promptly: Given that the chimney is structurally damaged, prioritizing repairs is important. If you can afford to make the repair out-of-pocket without causing undue financial strain, this could be a good route, especially if it helps you avoid issues with coverage in the future.
Explore New Options: You mentioned your dad switched from Erie to Farmer’s without requiring an inspection. This could be a sign that there are options available that don’t require an inspection, especially if they are willing to underwrite you based on other factors.
Documentation: Keep a record of all communications and quotes pertaining to the chimney repair. If you go ahead with a claim or seek out new quotes, having detailed documentation will help in the process.
Evaluate Your Risk Tolerance: Ultimately, you’ll need to weigh the risks of not disclosing the existing damage versus filing a claim. If you opt to move forward with a new policy without disclosing the damage, be aware that this could have consequences if discovered later on.
It’s a tough spot to be in, but weighing your options carefully will help you make a more informed decision. Good luck!