Safeco Reverses Homeowner Policy Cancellation After Post-Hurricane Dispute

Safeco Insurance initially decided to cancel a homeowner's policy in Greenville, South Carolina, shortly after Hurricane Helene in 2024. The policyholder, Laura Morris, who had maintained continuous coverage for nearly a decade and had minimal claims history, was notified of the cancellation via letter without any prior warning or detailed reasons.

Upon inquiry, the insurer cited concerns including debris, mildew on the roof, and overhanging tree branches as justification, supported by dated Google images. However, investigative review revealed that the official property inspection occurred after the cancellation notice was issued, raising questions about the timing and basis of the insurer's decision.

Safeco also stated intentions to assist the policyholder in finding alternate coverage, but no ongoing communication or support was provided to Ms. Morris. After external inquiry, Safeco reversed the cancellation decision but did not promptly communicate this reversal to the policyholder.

This incident highlights challenges in insurer underwriting and claims assessment practices, especially following severe weather events, and underscores the importance of transparent communication and proper procedural timelines in policy management. It also reflects broader market dynamics affecting homeowner insurance availability and underwriting scrutiny in disaster-prone regions.