California homeowners: Has anyone successfully found new insurance after having previous claims in the last five years?
I recently received notice from Amica that they will be dropping my coverage in June due to two claims I had in 2022 and 2023, both of which were for separate pipe bursts that they fixed.
To address any further issues, I decided to repipe my entire house out of pocket in 2024. Although Amica is aware of this improvement, they still opted not to renew my policy. Just for context, I don’t live in a fire zone.
I’ve already reached out to several other insurance companies, but many have turned me down because of my prior water damage claims, despite having repiped my home last year.
I’ve also worked with two independent insurance brokers, but neither has had any success finding me coverage. One broker did find a policy that costs $18,000 per year, not including auto and umbrella coverage, while I was paying only $4,500 for everything previously.
If anyone has faced a similar situation with past claims and managed to secure coverage, I’d appreciate any advice. I’m trying to avoid CFP and DIC if possible. Thank you!
I’m sorry to hear about your struggles with finding new homeowners insurance after your claims. It can be really frustrating to deal with insurance companies, especially when you’ve taken steps to mitigate further damage.
Here are a few suggestions that might help your situation:
Explore Specialized Insurers: Some insurance companies specialize in high-risk properties or clients with previous claims. These may have more flexible underwriting criteria compared to traditional insurers.
Seek Out Non-Standard Markets: Look into companies that offer coverage for clients who don’t fit into the standard market. These insurers might be more willing to take on clients with past claims.
Consider Higher Deductibles: Sometimes, agreeing to a higher deductible can make you more attractive to insurers since it reduces their risk. While this means more out-of-pocket costs in the event of a claim, it might help you secure coverage.
Review Credit Score: Ensuring your credit score is as strong as possible can help you when applying for new coverage. Some insurers take credit history into account when making their decisions.
Document Repairs: Keep thorough documentation of the repairs you’ve completed (like the repiping), as this can demonstrate your commitment to maintaining the property and reducing risks, which may work in your favor.
Network with Other Homeowners: Consider reaching out to local community groups or online forums specific to your area. Other homeowners may have recommendations for insurers who are more lenient or have had success in similar situations.
State Insurance Department: If you’re having difficulty finding coverage, you might want to check with your state’s insurance department for advice and to see if they can connect you with resources or insurers who may be more willing to work with you.
Check for Discount Opportunities: Some insurers offer discounts for home security systems, water leak detection systems, or other risk mitigation measures you’ve taken.
Finding insurance can be challenging, but hopefully, with some persistence and exploration of different options, you’ll find a suitable policy. Good luck!