In this era of unpredictable weather patterns, insurance companies are raising rates, cutting coverage, shying away at some payouts and generally shifting more expense and liability to homeowners, according to reports from the industry and its critics.
In the wake of Hurricane Irene last summer, for example, Allstate informed some 45,000 North Carolina policy holders that it would not renew contracts that were not bundled with auto insurance.
But it is not just natural disasters that can prevent homeowners from renewing or having their rates raised. Homeowners prone to claims may be dropped or have their rates raised. Frozen pipes, burglaries and other claims are all reviewed and will affect your insurability.
Potential homeowners can ask for reports (C.L.U.E. reports) during their purchase which insurers use to determine the risk of a certain property or area.
Even after obtaining insurance, with many policies being reviewed and modified, homeowners and even associations will have to review their policy to see if they need additional coverage. In some cases policies can only be renewed after specific, and sometimes costly repairs are made.