We (three owners in a condo situation in Berkeley, California…one house and two conjoined homes) have lost our property insurance with Allstate. I then paid $15,000 for a new roof since we were told insurers look at roof condition. Now we need to do $32,000 of electrical work because the front owner had Federal Pacific electrical panels. Our broker thinks insurers won’t accept us with that work not yet done; our electrician thinks insurers will give us a contingency if we have contracted to do the work. What is true? Thanks very much.
Lynne Cutler asked 9 months ago 1 Answers
Shirley Brown Expert answered 7 months ago Hi Lynne.
Your broker is correct if they are submitting you as new business, coverage will be rejected. If the policy is being non-renewed and the work will be done at least 30 days prior to the cancellation date, the agent can discuss with the carrier. Your carrier if accepts, will require to lift the non-renewal proof of completed work such as paid receipt(s) and photos.
At times there maybe other factors in the risk profile the carrier sees. Items such as claims history, payment issues, inspection issues in the past, underinsured, as well as other items.
Agents often get professionals outside of the insurance industry advising their clients of what an insurance carrier will do. We appreciate the opportunity to advise our clients and caution them to always reach out to their agent to confirm.
Best,
Shirley Brown
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