State Farm denied my renters insurance policy four weeks after I paid in full, citing past homeowners insurance claims as the reason.
My husband and I are moving across the country for a job opportunity. We sold our home and are temporarily renting until we close on a new house. I purchased a $300,000 renters insurance policy from a local State Farm office and prepaid for a full year. However, about four weeks later, the agent contacted me to inform me that because we had made claims on our previous homeowners policy (with a different insurer), they were rescinding my policy and that I had until April 24th for my coverage to lapse.
I thought this was a mistake. I had disclosed a claim for storm damage to our roof in 2023 before obtaining the policy. When I asked what claims I supposedly hadn’t mentioned, I realized I had forgotten about a separate claim for tree removal due to another storm later that year. The agent clarified that my policy denial wasn’t solely due to this oversight. Instead, State Farm had decided that we had filed too many claims on our homeowners policy. My husband and I have had four or five renters insurance policies in the past and have never made a claim on any of them.
I understand that State Farm has the right to deny a policy, but my family is confused about the situation. Did I make a mistake? Is this a common practice? I’ve searched online but haven’t found much information. Now I need to find another renters policy; will my previous homeowners claims complicate that process? Should I be disclosing anything specific in the future to avoid this issue? I’m feeling lost and am open to taking responsibility if I’ve made a mistake, but I want to know how to prevent this from happening again.
In short: My renters insurance was denied due to past homeowners claims with a different company.
I’m really sorry to hear about your situation. It’s definitely frustrating, especially during such a stressful time with your move. It’s important to feel secure in your insurance coverage, and the sudden denial must be unsettling.
In terms of finding a new renters policy, it can vary by insurer. Some companies might consider your homeowners claims while others may not, especially since you mentioned you’ve had a positive track record with renters insurance in the past. It’s crucial to be upfront about all claims during the application process; when in doubt, it’s better to disclose information. You might want to get a copy of your claims history, which can give you a clear picture of what is on record and allow you to address any issues upfront.
When applying for new coverage, explaining your situation can also help. Mention that your claims were related to homeowners insurance and emphasize your history of being a responsible renter with no prior claims. It’s also worth shopping around; different insurers have different underwriting guidelines, and you may find one that is more forgiving regarding past claims.
Going forward, keep detailed records of any claims you’ve made, even if they seem minor. Being thorough in your disclosures can help avoid issues in the future, and you might find that many insurers appreciate transparency.
Lastly, if you encounter difficulties, consider reaching out to an insurance broker who can help guide you to companies more likely to provide coverage given your circumstances. I hope you find the right coverage soon so that you can focus on settling into your new home!