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Minimum HomeOwners coverage


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#1 skifast88

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Posted 27 February 2012 - 09:23 AM

I am having a problem with my HomeOwnerns Insurance Company. I have a single primary home mortgage with ****** that has a principle balance of about $70,000


The property is appraised at about $140,000. My 'standard' policy has me with the following coverage:


A. Dwelling: $170,000


B. Other Structure: 17,000


C.
Personal Property:119,000


Up until this summer I have had no 'Other structure' , just the small house.


I have been building a shed with my own time and money. The Insurance Underwriter has sent me a 'non renewal' notice for 4/11/12 with the reason stated as ......"Unacceptable Other Structure"


So I have been paying all along (7 years) for this covergage but that now that I put up a shed they dont like it. Apparently as it is not complete presenting a potential liability. I have been hounded all winter by my agent who says I must remove the shed from the property or complete it and send pictures.


Further I do not want all this insurance, and I have negligilble 'Personal Property' , certainly nothing that needs insurance, old clothes etc. If I wanted to spend some money I would start with buying some 'Personal Property' before actually spending money to insure it.


So my question..."Is there some reason I can not choose the amount of coverage I have, above what I owe *******?"


Also " why do I have to have insurance on an outbuilding that I owe nothing on and would prefer to exclude from Insurance coverage.?"


The underwriter is essentially blackmailing me by indicating they will send out a notice to all insuran ce companies of my 'Non-Renewal'  action which would make it difficult/expensive to find Insurance in the future.


It seems an afront to my personal liberties to have this insurance company dictate how, what, when I build on my property when I dont want their Insurance in the first place. I do understand the responsibility for liablilty on my property etc but is there legislation that dictates and assumes this  responsibility for me. It is downright UnAmerican to not allow an individual to enjoy building a 8' x 12' shed on their property at their own pace and style.


I certainly dont want to pick a fight with the Insurance industry and understand I would never win. I dont mind paying the going rate for Insurance, I just dont like a system like this telling me how to live and act responsible and in the process stripping of my freedoms, including not insuring all of my property if I choose to take that chance.


Thank You for any advice,


Sinecerly,


Freedom Freak




 

[This post has been
edited to remove personal or identifying information. -Moderator]



#2 Fallen

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Posted 27 February 2012 - 09:37 AM

Don't name names here; it's against the rules.

It's a bit weird where you started out as compared to what your actual question wound up being.


You're free to file a complaint with the state insurance commission folks, but naturally we can't know from here whether your shed complies with local laws or in what way the insurance company finds it "unacceptable".  If you've been in the process of building it for months on end, not weird that the insurer has a problem with that.

Not sure why the side issue about how much coverage you have; if you didn't ask for it and they were insisting that you had to have that coverage, naturally you may want to switch agents.  We cannot know from here what any loan-related angle requires you to cover.


You're free to ask the agent (in writing please) or other insurance companies about having a specific exclusion for a given improvement.


"The underwriter is essentially blackmailing me by indicating they will send out a notice to all insuran ce companies of my 'Non-Renewal'  action which would make it difficult/expensive to find Insurance in the future."

I've a feeling there's a general database on this sort of thing, but you're free to complain to the state insurance commission.


"It is downright UnAmerican to not allow an individual to enjoy building a 8' x 12' shed on their property at their own pace and style."

Maybe so, but the question is whether it's unlawful.  :)

You can make your displeasure best known by voting with your feet and taking your biz elsewhere, I suspect.


I'll echo PG's advisory "warning" with a twist: (Many) legal issues are complicated. Explanations and comments here might not fully identify or explain the ramifications of your particular problem. I do not give legal advice as such (and such is impermissible here at any rate). Comments are based on personal knowledge and experience and legal info gleaned over a quarter century, and every state has differing laws on and avenues to address most topics.  If you need legal advice, you need to consult (and pay) a professional so that you may have someone to hold accountable.  Acting on personal and informational advice from a stranger on the internet is a bad idea -- at least not without your own thorough due dilience/research and confirmation as it applies to your situation.  :)





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