Insurance cancelation?

[dvb]

Can a home insurance company cancel our coverage for making too many clams in Calf.?

It is not illegal to do so once the policy expires or comes up for renewal

http://www.consumersunion.org/pub/co...es/000218.html

but see above to discuss what limits may also exist

call the commissioner to get the latest updates as well


Court OKs dropped policies
Home insurers can cancel coverage after claims filed
Bob Egelko, Chronicle Staff Writer

Tuesday, March 1, 2005




State Insurance Commissioner John Garamendi has no power to stop insurance companies from canceling coverage for homeowners who file claims or make inquiries about losses, a state appeals court ruled Monday.

In a decision that a consumer group called devastating, a Court of Appeal panel in Sacramento said the state's limited authority over homeowners' insurance leaves insurers free to refuse renewals to policyholders who claim losses -- a practice sometimes called "use it and lose it.''

Garamendi issued emergency regulations in July 2003 that would have allowed insurers to cancel or refuse to renew homeowners' policies only if the evidence showed an increased risk of future loss, and not merely because a loss had been claimed or suffered in the past.

He said his office had received complaints from 3,000 homeowners who said their policies had been terminated or their rates had been increased in the previous year because of filing claims or merely making inquiries. Garamendi said industry practices were making homeowners' insurance increasingly difficult to obtain or afford.