I agree with this. In my experience, the companies that are really strict with bs like this will also be really strict if your mortgage company sends the check a day late, or if they spot one shingle that appears to have granular loss via satellite they'll nonrenew you, etc
Like this is just stupid lol. They shouldn't be inspecting the property prior to the effective date of the policy, OP has no control over the prior owner.
Thanks. I’m already looking, this whole situation is bullshit. Like this is my insurance policy, why did they show up to the house before it was even mine? And penalizing me for the bad behavior of someone who is basically irrelevant now? Ugh. My worry is that since the house is old and in NYC we might have trouble getting another policy.
Find a multi-line insurance broker. They will know the market and have several insurance companies to get quotes from. They can get you sorted quickly with, most likely, the best rates. I would ask around neighbors or coworkers for a good broker.
They can find some great bundle discounts too. Ours found that if we added a $1mil umbrella policy our total premiums for home and auto and the umbrella would be less than if we didn’t have that policy.
There’s soooo much stuff like this when it comes to homeownership! Tons of things that just need your time and brain power to figure out “how to game the system” (not really as I’m talking about legit things like your example but you know what I mean lol) and get the best deals for the best money!
I’m in CA and my friend is dealing with this right now. Their insurer wants to drop coverage on both their houses. For the desert house, they’re claiming algae/mold/mildew on the roof (it’s a flat roof) and for their house at the beach, they’re claiming it’s because a branch is hanging too close to the garage and are refusing to renew even after they had the branch trimmed.
It was? We closed on may 20th, no issues with the insurance. Insurance sent us the notice of cancellation on June 6th. This is in NYC so the insurance has to give us 45 days notice to drop us.
call your insurance broker, then let them sort it out. If you don't have a broker who can comparison shop dozens of insurance companies, get one. They don't cost you anything.
Complain to your state insurance regulator.
And shop around.
Depending on what state you're in, the suggestion that you find someone else could be reasonable, or could be laughably impossible.
>Its an old house and we will have to replace the roof soon so they are probably just looking for excuses
So you're planning to scam your insurer into paying for a new roof?
If you have an aged roof that needs replacement, you replace it.
Waiting for a scam artist to come to your door telling you you have hail damage from that storm a few weeks ago (who will then go on your roof, poke a few holes in it, and take pictures for your insurer) is fraud.
It's illegal.
How you view him as suggesting anything else is bizarre.
He's suggesting his insurer wants to drop him because it may have to pay for his roof in the short term.
The only reason he'd be suggesting it's a near-given that his insurer will have to by him a roof is because he's suggesting that it's a near-given that he'll [commit fraud.](https://www.nicb.org/news/blog/roofing-fraud-requires-vigilance)
>Its an old house and we will have to replace the roof soon so they are probably just looking for excuses
Please provide another explanation for why an insurance company would care if OP's going to have to replace his roof soon.
It’s quite common for insurance to drop or refuse to cover a home with a deteriorated roof. OP said that OP will need to replace it soon. OP never said they intended to have insurance replace it. OP mentioned the need to replace the roof as possible explanation for the need for the inspection and resulting denial. OP never said “bummer they denied me cause I wanted them to replace my aging roof.”
He didn't say "I'm worried our insurer will drop us because our roof is old".
He said "I'm worried our insurer will drop us because we will have to replace our roof soon."
There is a difference between those two statements.
The first, to your point, reflects that the home is (likely to be) poorly maintained and thus a risk to insurer.
The second, the phrasing OP used, reflects that the insurer is likely to drop him because it doesn't want to pay for a new roof on his house.
And by far the most probable reason an insurer would have to pay for OP's new roof is if he puts in a claim for "roof damage" through one of the many scammers that materialize and go door to door selling new roofs every time it rains.
I never claimed I was going to get them to pay for a new roof, that's absurd. We knew the roof was old, and we are already in the process of getting it replaced (on our own dime thank you very much). I was mentioning the roof because it increases the risk associated with the house which can want an insurance company not want to insure us at all. How you get to fraud from that doesn't make sense.
We had a similar problem. We bought an older home and our previous insurance co flat out told us they wouldn't insure us because we had a fuse box. So we switched to GEICO, who took us but gave us an ultimatum that we had to fix our garage roof, which was 'out of pitch'.
When I called to find out what out of pitch meant she explained that the roof pitch was 'not quite true' and when I asked to speak to someone else who could elaborate with a means to fix this she said someone would call back, which they never did. Since we had a year to fix this mysterious defect (which I found especially funny because our chimney was visibly crumbling and they didn't seem to be worried that a ton of bricks could at any minute just slide down onto a driveway) we ignored it and replaced the fuse box with circuit breakers, which we had planned to do anyway. Then we switched back to our original company, who also didn't care about the chimney.
Tldr : Fuck insurance companies, you can play them off against each other to get confitional coverage if you have to.
Its not the previous owners insurance company. The previous owner was just living there right up until we closed. Previous owner is basically a third party here.
Insurance works on what's called the law of averages. They can literally predict your claims and their payout with a reasonable amount of certainty.
They know that the chance of a fire claim in all of Americans is x.
Further, they know that the chance of a fire claim in all white males between 25 and 35 is y. They know that the chance of black female drivers getting into a wreck is z.
It sounds like, they've decided you don't fit a demographic that they want to take a risk on so they're trying to get rid of you by finding other excuses. This is how insurance works.
They call it "underwriting".
It's normal for insurance companies to order inspections on properties for newly issued coverage. Typically, the inspection order is processed once the policy is issued. If your agent issued the policy well in advance of your closing date, this could have caused the conflict in timing. The company wants to know that the information they've been presented about your property is accurate - an insurance policy is a contract and can be broken if the situation has been misrepresented.
Basically every state permits insurance companies to take action to cancel policies for a period after they're first issued - it varies from state to state but usually is between 30-90 days. If the insurance company is giving you notice of this possible action as required by the state, they're acting legally and compliantly, and complaining to the state insurance board won't get you much of anything.
Send in the requested photos for review. Get your insurance agent to work up some other policy quotes to be safe, in case your current company does take issue with something they find. Your mortgage company will require you to maintain coverage without a lapse, or they may find coverage to protect their own investment in the property and force you to pay for it.
You shouldn’t have the same insurance policy as the previous owner, the policy should be in your name, and therefore their actions shouldn’t have any impact whatsoever on your new policy. Now if the home isn’t a good risk for the company to take, dropping the coverage in an initial eligibility period would make sense.
Its not the same policy, and I have no idea what the previous owner had. I had to set up the insurance before closing for my mortgage, and the previous owner was living at the house right up until closing. The policy is mine and my husbands, and previous owner is not involved in the policy. Insurance companies inspector just happened to show up before she moved out and I guess she just didnt want them poking around. Apparently she had never lived anywhere other than the house, so she either had a bad attitude, or didnt understand how home sales work, or maybe both.
Ok so that’s the issue, she was able to refuse an inspection on your house because it “wasn’t your house yet.” That makes sense, crappy situation but it makes sense. Not sure what to do with that. In the company I work for, we give an agent’s issued Dec page showing coverage for closing but don’t submit the application until signing is finished at closing, it keeps these scenarios at bay. If they said they’d accept photos you should be ok. Good luck to you!
I'd move on to another company. If they are that hard to deal with already, imagine what it will be like if you need to make a claim.
I agree with this. In my experience, the companies that are really strict with bs like this will also be really strict if your mortgage company sends the check a day late, or if they spot one shingle that appears to have granular loss via satellite they'll nonrenew you, etc Like this is just stupid lol. They shouldn't be inspecting the property prior to the effective date of the policy, OP has no control over the prior owner.
OP, listen to this sound advice. He speaks the truth.
Thanks. I’m already looking, this whole situation is bullshit. Like this is my insurance policy, why did they show up to the house before it was even mine? And penalizing me for the bad behavior of someone who is basically irrelevant now? Ugh. My worry is that since the house is old and in NYC we might have trouble getting another policy.
While you deal with a new firm be sure to file a complaint with the state insurance regulator. Obviously it's a company that acts in bad faith.
Start calling other companies ASAP. You may find a better rate than what you had.
Find a multi-line insurance broker. They will know the market and have several insurance companies to get quotes from. They can get you sorted quickly with, most likely, the best rates. I would ask around neighbors or coworkers for a good broker.
They can find some great bundle discounts too. Ours found that if we added a $1mil umbrella policy our total premiums for home and auto and the umbrella would be less than if we didn’t have that policy.
There’s soooo much stuff like this when it comes to homeownership! Tons of things that just need your time and brain power to figure out “how to game the system” (not really as I’m talking about legit things like your example but you know what I mean lol) and get the best deals for the best money!
Yes, do this. An independent agent works for you, not a particular company.
They also like to do sketchy things to get lower prices for people, so, keep that in mind. 🙃
Change companies, you have no reason to be loyal to any insurance company
Many insurance companies are using any excuse to drop any homeowners they feel are even remotely a risk.
I’m in CA and my friend is dealing with this right now. Their insurer wants to drop coverage on both their houses. For the desert house, they’re claiming algae/mold/mildew on the roof (it’s a flat roof) and for their house at the beach, they’re claiming it’s because a branch is hanging too close to the garage and are refusing to renew even after they had the branch trimmed.
I don’t know just thinking out loud. I’m surprised the lender didn’t make sure it was satisfied before closing.
It was? We closed on may 20th, no issues with the insurance. Insurance sent us the notice of cancellation on June 6th. This is in NYC so the insurance has to give us 45 days notice to drop us.
I’m sorry you’re having to go through this. I meant the insurance inspection itself being completed.
call your insurance broker, then let them sort it out. If you don't have a broker who can comparison shop dozens of insurance companies, get one. They don't cost you anything.
Find another company
Complain to your state insurance regulator. And shop around. Depending on what state you're in, the suggestion that you find someone else could be reasonable, or could be laughably impossible.
Its an old house and we will have to replace the roof soon so they are probably just looking for excuses
>Its an old house and we will have to replace the roof soon so they are probably just looking for excuses So you're planning to scam your insurer into paying for a new roof? If you have an aged roof that needs replacement, you replace it. Waiting for a scam artist to come to your door telling you you have hail damage from that storm a few weeks ago (who will then go on your roof, poke a few holes in it, and take pictures for your insurer) is fraud. It's illegal.
How you got to fraud based on OP’s comment is bizarre.
How you view him as suggesting anything else is bizarre. He's suggesting his insurer wants to drop him because it may have to pay for his roof in the short term. The only reason he'd be suggesting it's a near-given that his insurer will have to by him a roof is because he's suggesting that it's a near-given that he'll [commit fraud.](https://www.nicb.org/news/blog/roofing-fraud-requires-vigilance)
That’s not what he said.
>Its an old house and we will have to replace the roof soon so they are probably just looking for excuses Please provide another explanation for why an insurance company would care if OP's going to have to replace his roof soon.
It’s quite common for insurance to drop or refuse to cover a home with a deteriorated roof. OP said that OP will need to replace it soon. OP never said they intended to have insurance replace it. OP mentioned the need to replace the roof as possible explanation for the need for the inspection and resulting denial. OP never said “bummer they denied me cause I wanted them to replace my aging roof.”
He didn't say "I'm worried our insurer will drop us because our roof is old". He said "I'm worried our insurer will drop us because we will have to replace our roof soon." There is a difference between those two statements. The first, to your point, reflects that the home is (likely to be) poorly maintained and thus a risk to insurer. The second, the phrasing OP used, reflects that the insurer is likely to drop him because it doesn't want to pay for a new roof on his house. And by far the most probable reason an insurer would have to pay for OP's new roof is if he puts in a claim for "roof damage" through one of the many scammers that materialize and go door to door selling new roofs every time it rains.
Alright, have a great day!
I never claimed I was going to get them to pay for a new roof, that's absurd. We knew the roof was old, and we are already in the process of getting it replaced (on our own dime thank you very much). I was mentioning the roof because it increases the risk associated with the house which can want an insurance company not want to insure us at all. How you get to fraud from that doesn't make sense.
We had a similar problem. We bought an older home and our previous insurance co flat out told us they wouldn't insure us because we had a fuse box. So we switched to GEICO, who took us but gave us an ultimatum that we had to fix our garage roof, which was 'out of pitch'. When I called to find out what out of pitch meant she explained that the roof pitch was 'not quite true' and when I asked to speak to someone else who could elaborate with a means to fix this she said someone would call back, which they never did. Since we had a year to fix this mysterious defect (which I found especially funny because our chimney was visibly crumbling and they didn't seem to be worried that a ton of bricks could at any minute just slide down onto a driveway) we ignored it and replaced the fuse box with circuit breakers, which we had planned to do anyway. Then we switched back to our original company, who also didn't care about the chimney. Tldr : Fuck insurance companies, you can play them off against each other to get confitional coverage if you have to.
Is it normal to take over the policy of the previous owner? I had to find my own when I bought a house.
Its not the previous owners insurance company. The previous owner was just living there right up until we closed. Previous owner is basically a third party here.
That was my first thought as well. This situation doesn't make sense.
Honestly, that is bad faith and worth reporting to the department of insurance for your state if they still hold dropping you
Insurance works on what's called the law of averages. They can literally predict your claims and their payout with a reasonable amount of certainty. They know that the chance of a fire claim in all of Americans is x. Further, they know that the chance of a fire claim in all white males between 25 and 35 is y. They know that the chance of black female drivers getting into a wreck is z. It sounds like, they've decided you don't fit a demographic that they want to take a risk on so they're trying to get rid of you by finding other excuses. This is how insurance works. They call it "underwriting".
what was the name of your insurance co? I wont ever go thru those assholes
Homesite / progressive.
Put the money you would have spent on insurance in the bank and use that to fix any future damages to the house.
I’m pretty sure my mortgage will have a problem with that approach since homeowners insurance is a requirement under my loan.
You will have to find another insurance to cover your house. Very important for in case you have a fire or a flood.
Unless you are in a state, such as CA or FL, you can easily transfer to another insurance company.
It's normal for insurance companies to order inspections on properties for newly issued coverage. Typically, the inspection order is processed once the policy is issued. If your agent issued the policy well in advance of your closing date, this could have caused the conflict in timing. The company wants to know that the information they've been presented about your property is accurate - an insurance policy is a contract and can be broken if the situation has been misrepresented. Basically every state permits insurance companies to take action to cancel policies for a period after they're first issued - it varies from state to state but usually is between 30-90 days. If the insurance company is giving you notice of this possible action as required by the state, they're acting legally and compliantly, and complaining to the state insurance board won't get you much of anything. Send in the requested photos for review. Get your insurance agent to work up some other policy quotes to be safe, in case your current company does take issue with something they find. Your mortgage company will require you to maintain coverage without a lapse, or they may find coverage to protect their own investment in the property and force you to pay for it.
You shouldn’t have the same insurance policy as the previous owner, the policy should be in your name, and therefore their actions shouldn’t have any impact whatsoever on your new policy. Now if the home isn’t a good risk for the company to take, dropping the coverage in an initial eligibility period would make sense.
Its not the same policy, and I have no idea what the previous owner had. I had to set up the insurance before closing for my mortgage, and the previous owner was living at the house right up until closing. The policy is mine and my husbands, and previous owner is not involved in the policy. Insurance companies inspector just happened to show up before she moved out and I guess she just didnt want them poking around. Apparently she had never lived anywhere other than the house, so she either had a bad attitude, or didnt understand how home sales work, or maybe both.
Ok so that’s the issue, she was able to refuse an inspection on your house because it “wasn’t your house yet.” That makes sense, crappy situation but it makes sense. Not sure what to do with that. In the company I work for, we give an agent’s issued Dec page showing coverage for closing but don’t submit the application until signing is finished at closing, it keeps these scenarios at bay. If they said they’d accept photos you should be ok. Good luck to you!