According to a study conducted by the Independent Insurance Agents & Brokers of America about ten years ago, it’s not unusual for homeowners to lose their insurance. Findings revealed that 2.5 million households lost their insurance in two years while another 51 million saw their rates increase. This is because homeowner’s insurance isn’t a big moneymaker for providers. Therefore, when policies become too demanding, insurance companies are quick to drop them. Providers also now have access to databases such as CLUE, the Comprehensive Loss Underwriting Exchange. With this new technology, they can easily access history on homeowner’s claims to decide whether or not they are high risk. If customers are high risk
, they may refuse to take their policy or quickly drop them if they see many claims being filed.