How in trouble am I with my home insurance transition?
I definitely need some guidance.
In mid-January, I received a nonrenewal notice from my current insurance provider for my single-family home rental property. They decided to reduce their exposure in my area due to several instances of hail and storms. I contacted my insurance agent, who found a new company willing to take on my policy. Everything seemed to be going smoothly. We processed the payment through escrow, and I thought I was all set.
However, last Thursday, I received a “cancellation notice” from the new insurance company, stating that my roof had damage, including missing shingles. Today, I got a refund check for the payment I made, which means I’ll soon be uninsured, and I’m feeling stuck.
My agent advised me to contact my previous insurance company to see if they might file a claim, but I’m unsure of how to proceed. The issue is that they’ll likely inquire about the date the damage occurred.
Given that there were a couple of hail and storm events in 2024, I could potentially choose a random date to file a claim, but I don’t want to do anything unethical. What do you all suggest I do in this situation?
Oh, and this is happening in Texas, just for context.
I’m sorry to hear about the situation you’re in, but there are steps you can take to navigate this. Here’s what I suggest:
Document Everything: Keep a record of all correspondence with both your current and former insurance companies, including the non-renewal notice, the cancellation notice, and any communication with your agent.
Contact the Former Insurance Company: Reach out to your former insurance company to explain your situation. Be transparent about the timing of events—let them know about the hail and storm events but emphasize that you didn’t notice any roof damage before the policy was non-renewed. They may have procedures in place for this situation.
Consider a Roof Inspection: To strengthen your case, consider hiring a professional roofing contractor to inspect the roof. They can document any pre-existing damage, which could help when discussing with your former insurer or securing a new policy.
Shop for New Insurance: While you’re addressing the situation with your former insurer, start shopping around for new policies immediately. Some companies could be more willing to insure your property despite previous hail damage claims, especially if the damage is deemed minimal.
File a Claim if Necessary: If you can establish that there was indeed damage before your cancellation but were not aware of it, you may need to file a claim. Make sure to be honest about when you first discovered any issues.
Stay Informed About Texas Insurance Laws: Texas has specific regulations regarding insurance, so make sure you understand your rights. Your agent should also be knowledgeable in this area. If necessary, consult with a legal expert who specializes in insurance claims.
Keep Communication Open: Continue to communicate with your insurance agent throughout this process. They can offer support and guide you on the best steps moving forward.
Time is of the Essence: Since you are at risk of being uninsured soon, act quickly to avoid a lapse in coverage.
Good luck, and I hope everything resolves smoothly for you!