Accessibility menu
State Representative Joe Mullery
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4262
For more information contact: Christina Gosack 651-296-5524
NEWS COLUMN
READ THIS BEFORE MAKING AN INQUIRY TO AN INSURANCE COMPANY
Most homeowners were unaware that insurance companies could treat a mere inquiry about a hypothetical claim as an actual claim.
Often, homeowners would contact their insurance agent regarding what the effect might be on their policy coverage if they make a claim on the policy for losses that they had. Many times these homeowners knew that the claim wasn’t for a huge amount of money and that the effect on their insurance premiums, or even possible termination of their insurance, might be far more detrimental than just paying the amount out of their own pockets for the loss rather than making an insurance claim. Insurance companies often raise their insured’s premiums or terminate their insurance based merely on such inquiries.
Under a new law we passed, which went into effect August 1, homeowner insurance companies will now be prohibited from counting an insured’s inquiry to their company about a hypothetical claim, or an inquiry to the insured’s agent about a potential claim, as an actual claim.
However, if the insured calls their insurance company asking about a potential claim without directly talking to their agent, it can still be counted as a claim, potentially affecting the insured’s premium rates. Insurance companies are also prohibited from refusing to renew insurance based on hypothetical claims or potential claims discussed with an agent. In effect, such inquiries should not be part of the insured’s claim history.
I hope this information is helpful.
News Items
- Reminder: Primary - August 14; Some Voting Locations May Have Changed - (Posted: 2012-07-08 00:00:00)
- Passing of Dr. John Williams - (Posted: 2012-07-09 00:00:00)
- Rep. Mullery: 2012 Legislative Report - (Posted: 2012-07-10 00:00:00)
- Archived News Items
- Subscribe to RSS News Feeds
- Read more about RSS.