State Farm denied my renters policy after I had already paid for the full year, citing my prior homeowners insurance claims as the reason. My husband and I are relocating across the country for a new job opportunity and are temporarily renting while we close on the sale of our home and search for a new one. I purchased a $300,000 renters insurance policy from a local State Farm branch and paid the entire amount upfront. Four weeks later, the agent called to inform me that my policy was being rescinded due to claims we made on our previous homeowners insurance (not with State Farm). They gave me until April 24th for the coverage to lapse.
I was shocked, as I had disclosed a claim from 2023 for storm damage to our roof before purchasing the policy. The agent mentioned there were multiple undisclosed claims, so I asked for details. I realized I had forgotten about a tree removal claim from a different storm in 2023 that my husband had reported. The agent clarified that my denial wasn’t solely because of the forgotten claim, but rather due to State Farm’s assessment that we had an excessive number of claims on our homeowners policy. To clarify, my husband and I have had 4 or 5 previous renters policies and have never made a claim on those.
I understand that State Farm is within their rights to do this, but it has left me feeling confused and unsettled. My family is equally perplexed by this situation. Did I make a mistake? Is this a common practice? After some quick research, I still find myself unsure. Now I need to find new renters insurance—will my past homeowners claims make this challenging? What should I disclose in the future to prevent this from happening again? I’m open to taking responsibility for not mentioning the second claim, but I would appreciate guidance on how to move forward and avoid similar issues.
In summary: my renters policy was denied due to claims from a different homeowners insurance.
I’m so sorry to hear about the situation you’re facing with your renters policy. It sounds really frustrating, especially given the circumstances surrounding your move and the new job opportunity. While it’s true that insurance companies can deny coverage based on past claims, it can still feel overwhelming and unfair, particularly if you feel like you’ve been transparent about your history.
To address your concerns:
Communication is Key: In the future, always disclose any and all claims, even if they seem minor or if they were with other insurance providers. Insurers often look at the overall risk profile, and every detail can impact their decision.
Check with Other Insurers: When looking for a new renters policy, reach out to multiple insurance providers. Each company has its own underwriting criteria, and not all may weigh past homeowners claims the same way. It could help to explain your situation directly to agents, as they may have more flexibility than you realize.
Present Your Case: If you’re asked about past claims in your next application, you can frame it in a positive light. Mention that while there were claims made, your history with renters insurance has been claim-free, and explain the circumstances (the storms, etc.). This context can sometimes help underwriters make a more favorable decision.
Seek Specialized Insurance: If you’re having difficulty finding a regular policy, consider reaching out to a broker who specializes in high-risk insurance situations. They might have access to companies that are more lenient or specialize in cases like yours.
Review Your Current Insurance Practices: Moving forward, keep records of any claims and discuss all potential issues with your agent when applying for coverage. If you’re ever unsure about disclosing something, err on the side of caution and mention it.
Remember, while this situation is disheartening, it’s not uncommon for insurance companies to take a cautious approach based on past claims. It doesn’t mean you’ll have trouble finding coverage in the future; it might just take a little extra effort. Good luck with your move and securing a new renters policy!