Complaint / review text:
I received a letter from our insurance company, State Farm, stating that since they had paid a claim for $5,323.55, they were cancelling us as of April 29,2010. The claim was for water damage in our basement. We have been a customer for 17 years. We also have 4 cars insured with them. They've paid only one homeowner's claim.
We submitted a claim on 05-25-05 for a broken water pipe which caused basement damage. They denied the claim, because the pipe that broke and caused the damage was located outside and they said it wasn't covered. They stated the reason for cancellation is because we have had claim activity. What's insurance for if you can't submit a claim when needed?
We are excellent customers and have never been late on a payment in the 17 years that we've been a customer. Do we have any recourse or do we just have to accept this unfair behavior on their part? An agent also called my husband a couple months ago and said they were raising our deductible from $500 to $1,900 because they had to pay our claim. A short time later, we received a letter saying they were cancelling us.