There will always be other companies that can pick up your insurance if this company cancels. I would be pretty surprised that they would cancel over this small of a claim though regardless of whether or not you had a larger one earlier in the year. Agents will always go with the side of caution, because if the policy gets dropped, they lose their renewal dollars. Not a knock on them, because they are being honest, but truth is that this is exactly what you pay for insurance for. If they spit out the dollars and choose to cancel you, then you can find another happy company waiting to take your money with in 15 minutes.