'A homeowner's nightmare': Santa Maria homeowner dropped by USAA after 36 years due to loss history

To file a claim or not to file a claim... that is the question.

Stephanie Foster has owned a home in Santa Maria for over 20 years and planned on living there for the rest of her life.

Then in May, she got some bad news.

"A letter that read congratulations Dr. Foster, we're so glad you've been a member with us for 36 years but because of your loss history we are not renewing your insurance," Foster said.

It all started last year at a get-together with 20 other people in her house.

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

Her floor was damaged.

"Over the course of the party, we watched the floor go from flat to crinkled," said Foster. "We cut the water off and the next day we found there was a leak in the slab that went from the reverse osmosis to the refrigerator."

She called her insurance company USAA for help.

Throughout the process of tearing out cabinets to fix the issue, they found mold, so she filed another claim.

Six months later she found more mold in her bathroom and made an additional claim.

"It's been a homeowner's nightmare," Foster said.

Filing three claims in six months.

"The insurance company spent over $125,000 on 75% remodel and I have a mortgage, so I have to do the work," said Foster. "I can't just say I'll live with it and I certainly can't live with mold in my home."

She didn't know she was making a huge mistake.

"I called the insurance company and asked them if I should make this claim," said Foster. "They said this is a converged claim you will be reimbursed you will get your house back."

In August, she was dropped by USAA.

With several other insurance companies leaving the state of California, she hasn't been able to find a new company.

Janet Ruiz from the Insurance Information Institute explained why Foster might not be able to find new insurance to cover her house.

"Claims history is really important," Ruiz said. "If you're buying a home, the insurance company can look up on the clue report, which is the claims lost history on that home. They can let you know what's good information to know.".

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

For example, when there's accidental direct damage to a house like a big storm or fire damage.

If it's just a maintenance issue around the house like plumbing or electrical, Ruiz suggests not making a claim.

"It's really important to understand your insurance policy for your home," said Ruiz. "Look at what your limits are and pay attention to what deductible you have, that's how much you're going to pay when you have a loss."

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

"I hope that somehow California can lead the way and make a different change to some of these rules that are making it very hard for a hard-working individual to work and live," Foster said.