Our primary residence is located in Lucedale, MS. We moved here in May and until just a few months ago had never filed any homeowners insurance claims on this home. A few months ago there was an accident that resulted in damage to a neighbors property. ALFA was notified and they sent an adjuster to determine whether or not to pay the claim and the amount to pay.
Our other property is a rental home in Tupelo, MS. I have had this home insured through ALFA since I purchased it in 1998, and this was our primary residence until May. There has never been any homeowners insurance claim filed on this property in 14 years. However ALFA did increase my insurance premium on that property from $335 to $435 (30%) in retaliation for the Lucedale claim.
ALFA paid this claim, the only claim in 14 years of them taking my premiums and investing them for their profit. They are now terminating insurance coverage of our primary residence in retaliation for having to pay that one claim.
There is no other justification! All premiums have been paid through the mortgage company on time.
No property value determination has been made by the county or any other agency to determine if there is any increase/decrease in property value. No ALFA agent has been to my home. We have not filed bankruptcy and have no legal or financial actions pending against us for anything.
ALFA states as part of the justification, the substantial change in the risk due to adverse claims experience. One claim does not qualify as either substantial or adverse. However, if ALFA proceeds with this action it will most certainly have an adverse effect on me as a Disabled Combat Veteran
My home is on a HUD loan and I am disabled, have been disabled since 2001. My being listed as a high insurance risk will result in my having to pay even higher insurance premiums which will result in higher mortgage payments. As I am in locked in a contract for the rental property I cannot increase the rent to cover the increases ALFA has already put in place, or any future insurance premium increases.
ALFA agents have consistently forced me to insure my property for way more than its appraised values. They did this to increase their commissions and profits for ALFA. They were quite happy to accept that increased risk as long as they were making money and not having to pay anything out.
Money seems to be their main motivator. As we are all aware, insurance companies are in business to provide a service protecting both their clients and others affected either by accident or incident.
One claim in 14 years of property coverage by ALFA is neither substantial, excessive nor unrealistic.
However, terminating coverage on a client for having to pay out one claim, the reason they take my money, is excessive, unrealistic, and probably in violation of state and federal laws.
Who would have insurance coverage if insurance companies are allowed to terminate every customer for having filed one insurance claim?
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