Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

? asked in Business & FinanceInsurance · 8 years ago

Hurricane Sandy and insurance?

Can home owners insurance company drop you due to Hurricane Sandy claims? Have someone telling me their ins dropped them because of too many claims paid out to others and they were dropped...Always paid their premiums and hurricane didn't affect them, they live in NJ

Update:

Home is in part of NJ not affected by hurricane and there were never claims put in by this person in 20 years...

Update 2:

Home is in part of NJ not affected by hurricane and there were never claims put in by this person in 20 years...

6 Answers

Relevance
  • 8 years ago
    Favorite Answer

    Insurance companies can certainly drop you for putting in claims; especially lots of small ones.

    Their insurance company may not be writing coverage in the area of that home anymore, which could also be the issue.

    If they are non-renewing the policy, the state will require that the company provide an explanation. Rather than play telephone here, just ask your friend to look at their non-renewal letter and you will have a better idea of the reasons for the non-renewal.

  • 8 years ago

    Insurance can drop you, but only after claims are paid.

    Could be that the insurance company is going under.

    All a person has to do is find another company.

  • ?
    Lv 6
    8 years ago

    Not for Hurricane Sandy, the insurance can not drop you. Its was a catastrophic event. If you've had several other claims in the past (i.e. water damage, theft, kitchen fire) just to name a few the insurance company may cancel you.

  • 8 years ago

    Probably what happened is the company lost too much money and won't insure property in that area any more, so they are dropping all of the policies in that area.

  • wagers
    Lv 4
    4 years ago

    call for for insurance will upward push, grant of insurance will fall (by fact insurance companies do no longer prefer to ought to pay obscene quantities of money to those that lost their homes)

  • ?
    Lv 7
    8 years ago

    depends entirely on your state's insurance laws.

    do expect a raise in rates at least.

    dropping may be legal.

    company still has to pay claims.

    Source(s): IKE survior
Still have questions? Get your answers by asking now.