‘Is this the new normal?’: This California Farmers Insurance agent now risking his job by going public about questionable cancellations affecting at least 1,000 clients 65 and older

Took months of effort and media intervention to resolve

Carvalho, who has worked in the insurance industry for 37 years, put his job on the line by contacting the media to advocate for his clients.

He said last year, he wrote to Farmers management asking why his clients were getting policy cancellation letters out of the blue. He told ABC 7 that the company said it was how they “were doing business” at the time, but that it would stop in 2024. It didn’t.

Carvalho followed up with the company for months to get his clients' coverage restored. He submitted thousands of documents but was unsuccessful.

"They don't care," Carvalho said.

ABC 7 reached out to Farmers for comment and received this statement from the company’s director of external communications, Luis Sahugan: "We can confirm that the alleged widespread activity described in your inquiry is not occurring."

Farmers encouraged concerned customers to speak to a company agent. Carvalho said his clients tried that for a year to no avail — until ABC got involved.

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What to do if your homeowners insurance is canceled

If you get a notice that your homeowners insurance has been canceled, read it carefully.

If there's erroneous information in it, report the issue to your insurance agent or company representative. Ask for a more detailed explanation as to why your policy is being canceled — and what you can do to reverse the decision.

For example, your insurance may be canceled due to a risk — such as an outdated electrical system — that needs to be addressed for your policy to be reinstated.

Insurers must give customers sufficient notice of policy cancellations. Laws vary by state, but if your insurance provider hasn’t given you ample notice, you can file a complaint with your state’s Department of Insurance.

It’s also a good idea to shop around for homeowners insurance immediately after receiving a notice that your current policy is being canceled. Who knows? You may find that you’re able to get a better rate elsewhere.

If you're struggling to find a replacement insurer, see if you can get coverage through your state’s Fair Access to Insurance Requirements (FAIR) plan.

Most states provide insurance under the program, which at least offers basic protection in the event of major disasters. But FAIR plans can be more expensive than traditional policies.

Notify your mortgage loan servicer if there's a change in your homeowners insurance coverage.

Mortgage loan servicers typically require borrowers to maintain homeowners coverage while they're paying off their loans.

Yours should be looped in if you get a new provider.