"Contents Homeowners Insurance"

Another rip-off...

My mother's cost for her limited contents Homeowners Insurance renewal rate went up from $1,100 to $1,485 this year.  Since she lives in a condominium, her building "shell" is insured under a master policy that is covered by her quarterly maintenance payment to the Homeowners Association.  The interior policy is supposed to cover damage from fire, plumbing leaks, and wind for her 1,400 square foot two bedroom/two bath unit.  The maximum damage payment is $65,000.  The rate is "discounted" due to the hurricane shutter system that she installed on her window openings.

She mailed a check on Tuesday for the full payment.  The following Tuesday she received a letter in the mail that informed her that her policy was canceled for non-payment!  Numerous calls to the company revealed that on Sunday at midnight the company's computer system sent  out the notification letter (with no previous warning or call even though she has been a long-term customer!)

A few more calls determined that her policy would not be reinstated because she had made two claims for plumbing leaks damage during the last five years!  This company that holds the condominium master policy, has the monopoly on interior policies.   Since no other company would offer a policy she was directed to the State of Florida's established insurance provider for those who cannot find private insurance.  They offered the same coverage for a rate of $2,300 with  $500 wind and fire deductibles and a plumbing coverage exclusion!  What a "rip-off"! 

This is another example that our current world is out of control!