Some Lose Coverage After Filing Fran Claims
Posted July 23, 1997
RALEIGH — Hurricane Fran left many local residents filling out insurance forms. Now, as it turns out, if you filed too many claims, you could lose your coverage.
Hurricane season was not friendly to Johnston County resident Andy Currin. He had to file three claims with his insurance company, Allstate.
Fran was the worst for Currin but ,in all, the claims added up to $1,700. Everything was fine -- Curring received his insurance money, but then he got a surprising letter from Allstate cancelling his homeowner's insurance.
For a guy who's paid premiums for 10 years, having his insurance cancelled because of one bad storm season didn't sit well with Currin.
It's very difficult to explain why a company can do what Allstate did, and Allstate couldn't be reached for comment. But the law supports such cancellations. Deputy Insurance Commissioner Bill Stevens of the North Carolina Department of Insurance says the department has no power to force the companies to keep those policies.
Now, Andy Currin has to start looking for another insurance company. He says that's just not fair.
For those who can't find an insurance company to write a homeowners' policy, North Carolina has a safety net called the Fair Plan. It's a network of companies that write the policies together, but their premiums are usually more expensive than others.