Homeowners Insurance

I have been reading stories all over the net about people being dropped by their homeowner's insurance company. Recently, I had heard about someone in the town near me being dropped because she had 5 chickens. She was allowed 4. Now a friend of mine tells me that she is being dropped for a claim from 2005. Folks, that is 7 years old! None of these people have ever been late on a payment that I know of and neither have the people online either. One couple recently was dropped for reducing the number of their cattle herd. Now I have thought long and hard about this and it makes no sense. Why are the insurance companies dropping people for such ludicrous reasons? They are losing money in doing so. Some of these people that have been dropped have never filed a claim. And why have insurance if filing a claim will get you dropped? Once you have been dropped then if you can find another company to take you on you will pay higher premiums. Is this some type of scam within the industry as a whole....company x agrees to drop so many clients and company y agrees to drop so many and then they trade clients and get higher premiums? Hmmmm...maybe I am on to something there. I know quite a number of people who aren't buying into the insurance scam anymore, but if you have a mortgage you have no choice. And like one friend said we live in such a litigious society now that it is downright dangerous to not have insurance and then allow anyone onto your property. If they get a splinter they can sue you for everything you have and many will do exactly that. So what is a body to do? I know people who pay tremendous amounts of money to insurance companies and when they do have a legitimate claim to file for won't do so because they are afraid they will be dropped. Wow, I need in on the homeowner's insurance racket because that is exactly what it is a racket that is perfectly legal and they get away with it. And nobody says or does anything. What can we do without leaving ourselves wide open for some nutjob to take everything we have worked hard for because they came over for a dinner party, took their shoes off and stepped on a sticker in the front lawn! Am I the only one who thinks this is absolutely ridiculous and am I the only one who fears that as the economy crumbles frivolous lawsuits will grow in number as people are desperate for money....any money....even from a friend. It is a crazy world we live in and I tell you some remote jungle somewhere looks better and better all the time. Blessings, Kat