Hoarders, beware: Homeowner's insurance could be pulled

Are you a hoarder? If so, your homeowner's insurance could be canceled or your rates could be raised.

Often, insurers don't know if you like to hoard because they don't inspect the home on the inside at the time the insurance is written. They just take pictures of the outside of the property and, if it looks good, write the policy. Sometimes they don't find out that someone has a problem with hoarding until a claim is filed.

At the time a claim from a hoarder is filed, the "claim would be paid according to contract," according to Dick Luedke of State Farm, and most contracts do not exclude hoarding.

So your claim would likely be paid, but then the problems could start. In severe cases, the insurance company may cancel your homeowner's coverage, and in other cases, they may raise your cost because of the increased risk of hoarding.