Water damage house--busted pipe (cost, worth, company, legal)

[NCtoMiami]

I have a question a friend was out of town for one week and while gone a pipe busted and started liking and the whole house was flooded. Damage was about 15K. His insurance said since this was flood and could be controlled they will pay the claim and then drop him. Is this legal? The name of insurance is N..W

[akck]

It happens all the time, so it must be legal or the cost to fight it is too high to be worth it.

[Pitt Chick]

The insurance is under no obligation to keep your friend on as a client.

[MrWillys]

I'd still be a bit upset, and especially so if they'd been with that company for a long time. I would record all correspondence with company for future reference.

[harry chickpea]

Yes, legal. AND... if he is required to have insurance, that next policy he finds will be more expensive because of the claim.

[fallingwater]

This happened to a friend of mine. She lives in an area where tornados are frequent. Her home had some damage and it was the first claim she had made in 9 yrs of being with the company. They fixed the damage, a total of about 5k and then dropped her.

[MrWillys]

I forget who it was on this site, but they linked me to a site i was able to see my insurance history. It show that my daughter had backed into someone in 2007. I think it may have been Mathjak?
Point is, after you get cancelled they all still know.

[NCtoMiami]

Insurance companies are scamming people. You pay them every month for years and once you file a claim they drop you. Another form of Ponzi scheme for sure.
Thank you all for the information. I will pass the information.