My Dad had water damage from two leaking faucets in his mobile home. State Farm wrote it up as two claims. By the time it was over the claim payout was $15,000 and change.

My dad got a letter from Snake Farm today that they were canceling his home owners insurance. The two claims were excessive payout.

Now some one correct me if I am wrong. I thought that was what insurance companies were "Supposed" to do. so as long as you pay them and don't want anything they are happy. A** Holes.

I guess they are paranoid about water damage.

I am still trying to fix up things that they screwed up or left for me to do.

 

Seen this happen with the Good hands folks too.

 

As far as I know most companies will drop you after 2 claims... not just state farm.

 

I think the frequency of the claims figures in there too. I had a similar situation a few years ago but the claims adjuster said in view of my long association with State Farm, they were going to honor the "excessive frequency" thing by averaging it out over the life of my patronage. Seemed fair to me.

 

Now wait until he trys to get insurance with another company and at a reasonable price since they all look at every claim that was ever paid out. The cost will be sky high

 

hmmmmm....this is touchy for me.......My wife has worked for the Farm for 29 years. She is a Claim Rep. She tells me, almost daily, how her day went, and what she was involved with. Some days, I say, "wow, that was interesting...." to totally ignoring her.
Some things she tells me, my radar catches, and I ask, "why did ya'll do that"....




All in all, I had the Farm before I met her.....homeowners, vehicles, life, credit union......I have a lot of friends from college in that business, and all I can say is,,,,,,you better tell your Dad to stay with the Farm.

 

Sometimes insurance companies also consider the risk. If someone is lacidasical in the care of their home that they would allow two seperate things to continue being a problem long enough that they would cause that extensive of damage, adios.!!

 

Same thing with Farmer's a few years ago. Had Insurance with them for 18 yrs made a claim that was about 6 or 7 thousand and they canceled me after pay off.

 

Not to defend or condemn anyone in this. But, looking at it from a pure business standpoint...if your premium was $300.00/year you would have to pay them for 50 years just to cover this one incident. If I understand your post correctly, the problem started as a leaky faucet!? How long do you have to neglect a leaky faucet to create $15,000. damage? To a moble home no less? You can buy a new one for that kind of money, and a good one for twice that. Home owners insurance was intended to cover catastrophic accidents and acts of nature. It is not a maintenance contract.

 

Welcome to the wonderful world of insurance. THEY like to receive the Premiums, BUT low and behold if they must PAY a claim![:@] If THEY do pay a claim, THEY jack up your premiums to cover your, I'm sorry....THEIR loss![:@][:@] Tim