Home > Uncategorized > Merry Christmas from the Preferred Mutual Insurance Company

Merry Christmas from the Preferred Mutual Insurance Company

Transcript of a letter we received yesterday:

Dear Mr. Roberts,

We will not be renewing your home insurance policy when it expires. The insurance will expire on 2/15/2008 at 12:01 a.m. local time. The reason for non-renewal is: Potential for catastrophic loss.

Regards,

Preferred Mutual Insurance Company

This leaves me with two questions. One, isn’t “potential for catastrophic loss” the only reason one gets homeowner’s insurance in the first place?

And two, do they know something I don’t?

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Categories: Uncategorized
  1. Moondoggie
    December 30, 2007 at 9:13 pm

    Try not to be home on 2/15/2008 at 12:01 a.m. local time!
    (Just in case they do know something you don’t)

  2. Autumn
    February 13, 2008 at 6:14 pm

    Yes, you have stumbled into the zen of insurance. What is the sound of one hand clapping? About the same sound you get when you need Preferred Mutual Insurance to make good on the policy you’ve paid on for years. Check out the ABC-TV news segment done in December 2006 when they left a good paying homeowner stranded for one year without paying a modest claim for the loss of her home in Elizabeth, NJ. The woman’s house was so damaged by fire that she and her child had to live in a hotel. There was no arson or any reason not to pay, just that tight fist holding on to their claims dollars as long as possible. If the investigation on the air hadn’t taken place, she would not have gotten payment (it was only like $65K). The news did the investigation because she had a letter from her bank threatening foreclosure and Preferred Mutual Insurance had apparently not responded to any inquires into the claim for seven months. It was pretty sad, but she was paid in the end. That was an eye-opener on this company.

    I suppose now they only want to insure people who will never have claims. I can see everyone lining up with their premiums now. Maybe that’s what “Preferred” means…they prefer not to pay.

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