Migliaccio & Rathod LLP is investigating whether major home insurance companies, such as Progressive, State Farm, and Travelers, quietly reduced homeowners’ coverage mid-policy without clear notice or consent.
What Homeowners Report About Coverage Reductions
Policyholders say they discovered major coverage downgrades only after filing storm or roof claims. Reports include:
- Replacement-cost policies converted to actual-cash-value (ACV) coverage, cutting payouts by thousands through depreciation.
- New percentage-based wind or hail deductibles (1% – 5% of the home’s insured value) replacing prior flat deductibles.
- Changes buried in renewal packets or auto-pay emails, with continued payment treated as “agreement.”
Why Homeowners Should Be Concerned
These practices may violate state home insurance laws and consumer-protection statutes requiring conspicuous notice and affirmative consent for material policy changes. Reducing coverage midterm may also breach insurers’ duty of good faith and fair dealing, leaving homeowners without proper home insurance when disaster strikes.
Signs You May Be Affected by Quiet Home Insurance Reductions
- Your policy now lists “ACV” instead of “RCV” for roof or dwelling coverage.
- A percentage-based wind/hail deductible replaced a flat dollar amount.
- You never signed or consented to the change in writing.
If your insurer lowered coverage or increased your deductible without clear notice, contact us at [email protected] or (202) 470-3520 for a free consultation.