The Santa Maria homeowner came to USAA after 36 years because of his loss history

To file a lawsuit or not to file a lawsuit… that is the question.

Stephanie Foster has owned a home in Santa Maria for over 20 years and plans to live there for the rest of her life.

Then, in May, she got bad news.

“A letter of congratulations, Dr. Foster, we are pleased that you have been a member with us for 36 years, but based on your claims history, we will not renew your insurance,” said Foster.

It all started last year at a meeting with 20 other people at her house.

“There was water on the floor, so I wiped it up, walked away and then came back,” Foster said.

Your floor was damaged.

“As the party progressed, we saw the floor go from flat to wrinkled,” Foster said. “We turned off the water and the next day we discovered that there was a leak in the panel that went from the reverse osmosis to the refrigerator.”

She called her insurance company, USAA, for help.

While they were tearing out the cabinets to fix the problem, they discovered mold, so she filed another lawsuit.

Six months later, she noticed mold again in her bathroom and filed an additional claim.

“It was a homeowner’s nightmare,” Foster said.

Filing three lawsuits in six months.

“The insurance company spent over $125,000 on the 75 percent remodel and I have a mortgage so I have to do the work,” Foster said. “I can’t just say I’m going to live with it, and I certainly can’t.” Mold in my home.

Little did she know that she was making a big mistake.

“I called the insurance company and asked them if I should file this claim,” Foster said. “They said it was a convergent claim, you would get a refund and get your house back.”

She was dropped by USAA in August.

Because several other insurance companies left the state of California, she was unable to find a new company.

Janet Ruiz of the Insurance Information Institute explained why Foster may not be able to find new insurance for her home.

“The damage history is really important,” Ruiz said. “When you buy a home, the insurance company can see the notice report, which contains the damage history for that home.” They can tell you what information is important.

Ruiz says there are certain times when you should file a lawsuit.

For example, if a home is directly damaged by an accident, such as a major storm or fire.

If it’s just a maintenance issue around the home, such as plumbing or electrical work, Ruiz recommends not filing a claim.

“It’s really important to understand your home insurance policy,” Ruiz said. “Look at your limits and pay attention to what your deductible is, that is, how much you will have to pay if you suffer a loss.”

Foster currently has a policy under the California Fair Plan, but says it’s not enough.

“I hope that California can somehow lead the way and change some of these rules that make it very difficult for a hard-working person to work and live,” Foster said.