Can insurance company cancel a policy when a claim is still open?

Answer 1

Technically they can do what ever they want and or think they can get away with. The condition that typically arises is that when you are canceled while a claim is open you will personally be held responsible for any repairs that have already been authorized. (remember that disclaimer you had to sign stating just that?) then to compound matters, no other insurance company will touch you while you have an open claim. Your mortgage company, assuming you do not own outright, will have an acceleration clause in your mortgage contract that kicks in when a non insured condition occurs and they have to append their own expensive coverage. Pretty bummed out yet? There is one avenue of recourse... If you have the resources to retain an attorney, you can sue the insurance company. Once the mortgage company sends you their notice, you now have authentic and easily verifiable damages. Keeping in mind that insurance companies have deep pockets and are in the business of fighting legal battles on a daily basis they have the ability to wear you down and know this very well. Shoot for an immediate injunction staying the cancellation until the repairs can be completed. Being honest, this is a shot in the dark but a sympathetic judge may help you. Please post your outcome so as to help others.