Is there any reason to continue policy if not rebuilding? Amber Christiansen asked 5 months ago
Is there any reason to continue policy if not rebuilding?

I lost my home in the Palisades fire and it was a total loss. I’ve decided not to rebuild, and will be buying a home elsewhere and eventually selling the property. State Farm is currently adjusting my policy since there is no building on the property, but it will still cost me $1,000 to renew it.

Since I’ve been told repeatedly by State Farm that they do not insure the land—they only insure the building—and there is no building on the property, is there any reason that I should renew the policy? The driveway and back deck are still somewhat intact, and there are still flower beds and a fence around the property. Could canceling the policy have any effect on my claim with State Farm? Would canceling it put me in any jeopardy?

1 Answers
Answer for Is there any reason to continue policy if not rebuilding? United Policyholders Staff answered 5 months ago
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Hi Amber,

Cancelling your insurance policy should not have an affect on your claim. You do want to consider any liability exposure that you have with the driveway, back deck, and property as a whole until you sell the property. We would recommend that you speak with an agent regarding liabilty insurance.

A non admitted carrier may be your only option for this coverage and we would recommend that you check the financial solvancy of the carrier before binding your policy. Check out UP’s great resource on this subject here:

https://uphelp.org/buying-tips/how-to-check-an-insurers-financial-strength/

Kindly, UP Staff