Will Your Insurance Be Cancelled if You File a Claim?

Many NC insurance policyholders are reluctant to file valid claims because they fear the insurance company will cancel their policy. There is good reason for this fear. The unsatisfactory but unavoidable answer to the question of whether the policyholder's insurance contract will be cancelled if they make a claim is: it depends.

NC Insurance Disputes

Each insurance company is different. Some insurance companies will, unfortunately, cancel a policy after one claim has been made. This is not the case for most insurance companies. However, if claims are made frequently, for instance one claim a year for four years running, most insurance companies will cancel the policy. If a homeowner has had the same homeowners' insurance policy for 20 years and relatively few claims, say two or three during that time, chances are that another claim would not result in the cancellation of the policy. However, we can never be sure.

Insurance and High-Risk Individuals in NC

Insurance companies are profit-making entities. In order to make a profit insurance companies have a right to insure only the risks that they think will be profitable. Therefore, insurance companies have a right to decide not to issue an insurance policy in any given situation. (North Carolina law has created an entity composed of several insurance companies which is required to issue insurance to high-risk individuals.)

Insurance Dispute Attorneys Raleigh

Even though insurance companies have a right to make a profit and may take into consideration profit motives when deciding whether to accept or decline insurance policies, insurance companies may not consider the profit motive in making decisions on whether to pay a claim. Once an insurance company issues an insurance policy, it has, in effect, sold a promise to its insured. Because of that fact, the insurance company has a strict duty to fulfill that promise even if by doing so the insurance company becomes less profitable or loses money all together. If you have a problem with your insurance claim, one of Brent Adams & Associates' insurance dispute attorneys can represent your case to make sure you receive the coverage that your deserve.