Legal Question in Insurance Law in California

Cancellation of Homeowner's Insurance

I recently cancelled my homeowner's insurance policy with one company due to exorbitant cost. Found another company $600.00 cheaper. I was just notified this second company is cancelling me due to a consumer service saying I made a claim in Dec. 2000. This is erroneous--never made a claim, just an inquiry as to the process, just in case, because a toilet overflowed and we worried about damage. It all turned out okay and never filed an ''official'' claim nor was any monies paid out to me or anyone else on my behalf. However, this first insurance company inputted it in their computer as a claim (because of my inquiry) and now this consumer service has me down for a claim that was never made. The agent of the first insurance company says she ''apologizes if she made an error but can't do anything about it now.'' As of May 14 I will have no homeowner's insurance--I am contacting a couple more companies but worry I will be turned down because of the error by first insurance company. Do I have any recourse as to filing a lawsuit on either one of these insurance companies I'm falsely accused.


Asked on 5/02/02, 12:20 am

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

Re: Cancellation of Homeowner's Insurance

You should notify the consumer service that their report is wrong, with an explantion that you inquired about the procedure to make a claim, but that you have never made any claims. If you can get a letter/memo from the first agent, send that with your letter. If not, quote what she told you in your letter.

If you can't get a letter from the agent, you can try her supervisor since they would be liable for your increased costs. A letter stating that you had no claims/that you have no claim history is not hard to give so the insurer should be happy to end the problems.

Maybe they will re-write you for the lower premium and solve this whole matter. But the second insurer, or the agent who placed you with the second insurer, should be able to handle this.

Read more
Answered on 5/03/02, 7:52 pm


Related Questions & Answers

More Insurance Law questions and answers in California