Insurance company cancels homeowner’s policy because she DIDN’T file a claim

insurance

By WFTV

Action 9 found a Melbourne family’s homeowners policy was canceled because of a water damage claim they never filed.

Action 9’s Todd Ulrich found out how just calling your insurance company with questions could cost you a small fortune.

There’s no damage to cabinets and walls, but Madge Wilson heard running water in the kitchen and called a plumber. He said to check with her insurance company first, and she called State Farm’s 800 number and heard, “It sounds like you don’t’ have a claim. If you don’t have water damage, you don’t have a claim.”

As it turns out it was a pinhole leak in the slab, and the plumber quickly fixed it.  The repair cost about $700.

Wilson and her husband paid cash because with no damage, there was no insurance claim to file.

But later, Wilson’s insurance premium shot up to $500. Wilson said part of the reason was a water damage claim she had just filed.

“I never filed a claim. They told me I did not have a claim,” she said.

Upset, Wilson changed insurance companies but a month later Peninsula Insurance canceled her policy; One of the reasons was the water damage claim.

“It’s not fair. It’s like putting you on a blacklist or something,” said Wilson.

Experts said it happens a lot. Any information reported to the insurance company, a quick call, an email question, becomes an official event that can impact your policy.

An Ocala man started filling out an online insurance claim then changed his mind but it became an official claim that increased his premium.

“I’m penalized for something I didn’t do,” said John Roesler.

And companies share claim information, so it follows you everywhere.

State Farm is reviewing the claim but could not comment.

After contacting Action 9, Wilson convinced a third insurance company there was no damage and got a new policy.

 

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