Attention California Homeowners: Has anyone successfully found new insurance after filing claims in the past 5 years?
I just received notice from Amica that they will be dropping my coverage in June due to two claims I had in 2022 and 2023, both related to pipe bursts that Amica addressed.
To prevent further issues, I completely repiped my home in 2024 at my own expense. Although Amica is aware of this update, they still opted not to renew my policy. For context, I don’t live in a fire zone.
I’ve reached out to multiple insurance companies, but they’ve all declined my application due to the past water damage claims—even with the recent repiping. I’ve also worked with two different independent insurance brokers, but neither has succeeded in finding a suitable policy. One quote I received was an outrageous $18,000 per year, not including auto and umbrella coverage. Previously, I was paying around $4,500 total.
Has anyone faced a similar situation and managed to find coverage? I’m hoping to avoid CFP and DIC if possible. Any advice or recommendations would be greatly appreciated! Thank you!
I’m sorry to hear about your struggles with finding new homeowners insurance. It can be incredibly frustrating, especially after taking proactive steps like repiping your home. Here are a few suggestions that might help:
Shopping Around: While you’ve already tried brokers, consider reaching out to a wider range of insurance companies, including smaller or regional insurers. Sometimes they have more flexibility with their underwriting criteria.
Homeowners Association (HOA) or Community Resources: If you’re part of an HOA, they might have recommendations for preferred insurers who are more familiar with the area and its risks.
Risk Assessments: Some insurance companies are willing to offer coverage if you can provide a detailed risk assessment or a report from a home inspector. Highlighting the improvements you’ve made, like the repiping, can be beneficial.
Increasing Deductibles: While this may not reduce your overall costs, opting for a higher deductible can sometimes make policies more appealing to insurers.
State-Mandated Programs: Check if California has any state programs or resources to assist homeowners in finding coverage after claims.
Appeal to Insurers: If you find an insurer that seems hesitant based on your claims history, consider writing a personal letter explaining your situation, the steps you’ve taken to rectify the issues, and your commitment to maintaining the property.
Seek Legal Advice: If you feel you’re being unfairly targeted due to your claims history, consulting with a legal expert who specializes in insurance may provide you with additional avenues to appeal an insurer’s decision.
Stay persistent and keep asking questions. There might be outliers in the market who are willing to take on your risk, especially given that you’ve made significant improvements to your home. Best of luck!