Tom McCutcheon – Attorney at Law
Q: My house received some damage after a storm earlier this year. I made a claim with my insurance company and they sent us a notice of cancellation. Can they do this just because we filed a claim?
Mario
Russellville, AL
A: Insurance companies can and will occasionally inspect a house and see if dangerous and/or unkempt conditions exist. If they determine that the house does not look well kept or dangerous conditions exist, they can and will cancel or not renew the policy even if a claim has not been made.
Insurance companies may cancel a policy in accordance with the terms of their contract or for excessive claims or even the manner in which a claim is made. You are free to do business with whatever insurance company you wish to do business with and insurance companies are free to do business with those patrons they choose to do business with.
There are certain exceptions where insurance is regulated by law. In situations where state law mandates certain types of coverage, such as workers compensation or uninsured motorist coverage, there are legal protections for policyholders. Workers compensation rates can only be raised when injuries occur and even then only when certain types of injuries occur. Companies look at “lost time accidents” where an injury is severe enough for an employee to miss work. Some companies look at whether the injury was severe enough to require medical treatment and/or prescription medication.
Obviously, my law firm does car wrecks day in and day out and we make claims for uninsured motorist coverage. Uninsured motorist coverage is some of the best coverage a person can have as it covers medical bills, lost wages, pain and suffering and permanent injury as a result of a motor vehicle accident. Because you may not claim uninsured motorist coverage in an “at fault” accident, your insurance company is precluded from raising your rates if you make a claim for uninsured or underinsured motorist benefits.
Buckle up and drive safely.
McCutcheon & Hamner, P.C.
2210 Helton Drive
Florence, Alabama 35630
Telephone: 256-764-0112
Facsimile: 256-764-1124
