Safeco Insurance has been my home liability insurance company for many, many years. Recently, I suffered a ‘break-in’ loss of a laptop computer in which I filed a claim and since it was covered, they paid for the stolen laptop. So…what’s the problem you ask? I’ll share with you the remainder of the story. A short few months after the incident, Safeco informs me: "After careful consideration, we have concluded that we will not be able to renew your homeowners policy." and why not, you may ask?
"While we regret this decision, we feel it necessary for the following reason: There is substantial increased hazard associated with the lack of maintenance of this dwelling."
1) “the facia has chipped, pealing and worn paint” (increased hazard???)
2) “the patio cover has exposed wood that is not protected from the weather” (again increased hazard?)
3) “the front steps lack a railing” (hello...it has been this way since 1940...1 step from porch to sidewalk and NO rail..."increased hazard"?)
OMG…with these disastrous home deficiencies producing such an "increased hazard", I can’t believe they could have taken my tens of thousands of dollars for all these past years and insured me anyway. The real reason for the cancellation (though not specifically stated by the agent, the truth was reluctantly acknowledged) and what really ticks me off, is the fact that they are looking for any reasons to cancel as they've ‘paid a claim’ and it shows ‘a loss’. To make matters worse, they make it almost impossible for me to get insurance with another company as they have posted for the insurance world to see that a claim was made. Guess what? NO insurance for me. My auto insurance agent has tried to no avail. Nope, have to wait a year after the claim. What in the world do we have insurance for anyway? If they choose to cancel you and make it impossible for you to be insured once you file a needed claim.
The photo above, while not my home, shows the ‘2 deadly steps’ that it takes to get in my front door. Hey guys, it's a 1940's bungalow and guess what? I went up and down my street and NO ONE with a two-step entry (and there are at least 30 two step entry homes on my street) have a rail. The facia, I will paint, of course our weather is not conducive to painting in the winter and spring months. The covered patio, a few fiberglass panels went in a storm, will have to be dealt with as well.
I have 3 weeks to get the items taken care of to their satisfaction and perhaps they will 'review' and possibly reverse their decision (although they have not stated as such). In the meantime, shame on you Safeco Insurance Company of America…your business practices are abhorrent!
13 comments:
Morally reprehensible but yet all too common. Insurance companies are greedy, evil empires.
Bice, I think you may be correct. I guess the moral of the story is, under NO circumstances file a claim with your insurance company unless it is a huge # and you have no choice.
Several years ago (pre-real estate life for me) the hose to the ice-maker broke. This resulted in some water running out of the kitchen into a dining area.
Foolishly, I called the insurance company. They came out and took a look. There was ZERO damage to any walls and baseboards. Basically the carpet and pad absorbed all of the water. I had the carpet and pad replaced. After the deductible, the insurance company cut us a check for $310.
Two years later we listed the home for sale. The insurance company had flagged our house as "having recurrent flooding problems".
Recurrent? Flooding? ProblemS? What the hell? Two buyers bailed, convinced the home was about to collapse from "all the previous floods". One, who'd been through a similar thing, didn't even care. His inspector came in, said "I don't think water has ever touched these walls" (and it hadn't).
But it sure made selling that old flood prone house a hassle.
I'll never file another claim unless the home burns to the ground.
Stan- Most insurance companies skate the line, crossing it frequently. And most consumers will let them cross that line because they don't know any better. Your best bet is to call their bluff. I'd hire a lawyer. You must know plenty of real estate lawyers. If Safeco has insured your house for 20 years without that front railing, I think that if this went to court, they would lose. I'm betting you can also force them to remove the prejudcial thing that's keeping you from getting other insurance. Hire a lawyer. It'll cost you a few hundred dollars, but in the end it will be totally worth it, especially if you can't get other insurance. Don't take this lying down! I used to work in medical insurance. The insurance companies stop messing with people who fight back.
Jay- I've heard that story before and I never expected this as it wasn't a 'damage' and/water claim. But, I guess any claim and they will ruin you if possible.
Helen- That's a possibility, although I'm trying desperately to get these done to appease them. Painting in our weather in March? ridiculous. The agent spoke with the underwriter yesterday and they will not bend...rail, paint or cancel. BASTARDS!!
Stan, I agree that you should not take this lying down. If the insurance company can get you to lie down, you know what they will do to you.
You have a mighty voice with this blog and the search engines. Keep the pressure on, my friend. If you have a "Consumer's Advocate" type of reporter in your neck of the woods, you might even see if they would get involved. I always enjoy seeing those corporate executives getting ambushed by the news crews when they come into their offices. When they duck and say, "No Comment!", they are in fact speaking volumes.
Thanks John,
I did contact consumer advocacy. They say I can file a claim, they will contact Safeco, but it is in their rights to cancel as long as they give written notice 45 days in advance.
absolutly nothing to do with your post but i wanted to stop by and personaly thank you for calling into the bice sagan show last night. it was a lot of fun and i hope you will continue to listen. heather.
p.s. we hope to fix our sound issues tonight.
It was my pleasure Heather. You and Bice were a good mix.
Safeco is a crap company. I had a lady back into the side of my car at a gas station. She was insured by Safeco. The damages were only about $1100 to repair by a good shop. It was an old work car and I only had liability. The estimated it at $750 and said that since it was private property, that they only would pay 1/2. Their plan was counting on such a small claim that I couldn't get a lawyer to take it and would have to accopet it as they so often do. I called, wrote to no avail....I then hired a lawyer on my own and sued them anyway as a matter of principal. I ended up with about what they offered after fees but I cost them a shit load of time and money.
The insurers should be held responsible for the comments they make about real estate, they can twist what they want as Jay quoted "having recurrent flooding problems" and get away with it, I had similar problems when I had my patio repaired, all new floor went down and I even coughed up for some brand new patio furniture, when I decided to move on and was selling up a report was issued saying foundation and structural faults, the insurance only paid for a few rotted patio boards and yet they can declare the house unsafe, it is madness, after a few banters with my attorney they reissued a report that was clean, but why should I have had to go through this just because I made a claim.
Well written article.
Well they don't treat their customers in Houston, Texas any better. We are still trying to settle our claim for damages suffered during Hurricane Ike on September 13, 2008.
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