It happens all the time—for one reason or another, a customer is unhappy with their current insurance provider. Maybe the premium is simply too high, the coverage too low, or they don’t feel that they are being treated fairly in the event of a claim. Whatever the reason, no one wants to be stuck with an agency that isn’t meeting their insurance needs. However, consumers may hesitate to look elsewhere because they have an open or unresolved claim with their current provider. The good news is that you have the right to switch insurers at any time and for any reason, even if you have an open claim.
Making the Switch
Changing insurance companies is a fairly simple process, and can be done without charge at any point. To cancel your policy, your current insurer needs proper notice of cancellation as stated in your policy’s terms and conditions. Some states legally require you to maintain certain types of insurance at all times; in this case the original insurer may not cancel your policy without proof of coverage from your new insurer. Unless it says otherwise, your policy should cover events that occur within the insured period, even if you choose not to renew.
What About the Open Claim?
You don’t have to delay changing insurance companies if you still have a pending claim; the claim process remains the same whether you hold an active policy with that company or not.
A common reason for an insured to switch companies is that their current provider is delaying payment on a claim. Even if the switch is made while the claim is still open, the original insurer is still responsible for handing the claim until it reaches resolution; they cannot default on the payment simply because the insured no longer has a policy with them. Likewise, the insured is still responsible for any deductibles or expenses related to the claim until it has been resolved. The claim must remain with the old insurance company; the insured cannot open the same claim under their new policy.
Finding the Right Replacement
The only downside to leaving your current company for a new one is that an open claim has the potential to hinder the process of finding a new insurer, especially if you are at fault for the claim. Potential insurers can access your claims history from the Claim Loss Underwriting Exchange and, depending upon the circumstances, this may result in a denial of coverage.
Blue Lime Insurance Group takes a fresh approach to association insurance, and we are dedicated to helping you navigate the often complex world of HOA insurance to simplify and streamline your coverage. Get in touch with us today for all your HOA insurance needs!