Why Is State Farm Declining Our Homeowners Insurance Despite Minimal Claims?
Navigating the world of home insurance can be challenging, especially when your coverage gets denied seemingly due to recent claim history, even if those claims are few and far between. Here’s our experience and some questions we’ve been pondering.
Our Insurance Journey: A Brief Overview
In August 2023, we replaced the roof of our Texas property after a hailstorm—our first and only insurance claim in 15 years of homeownership. It’s worth noting that this was the only claim we’ve ever made across the life of both our homes.
Subsequently, we relocated to Colorado. We now own and occupy two properties: the Colorado home, which has a roof age of over 12 years and recently endured a hailstorm, prompting us to file a claim last month. Our previous Texas home was rented out for about two and a half years before we sold it last year. Initially, we were insured through Connect, but dissatisfaction with premium increases—rising from $3,000 to over $4,300 in just three years—and the transfer of our policy to Homesite led us to look elsewhere for quotes.
When reaching out to State Farm, we learned that our recent claims might be making us ineligible for coverage. The representative mentioned that State Farm is tightening its stance on homeowners with multiple claims within a three-year window.
Key Questions We’re Facing
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Does owning multiple properties and multiple policies influence insurance eligibility?
It seems logical that owning more than one home might impact underwriting decisions, but does it really matter when considering recent claims? -
Is it worthwhile to contact other insurers, or will they respond similarly?
Are these policies uniformly strict, or could other providers offer better terms given our situation? -
Would engaging a private insurance agent be beneficial?
Since we haven’t worked with an independent broker before, could they help us navigate these restrictions or find more flexible coverage options?
Final Thoughts
It’s frustrating to be penalized for a few claims over the years, especially when they’ve been infrequent and minor. Insurance providers’ policies can often seem opaque, and policyholders are left questioning whether their claims history unduly affects their coverage opportunities—particularly when owning multiple properties.
If you’re in a similar situation, it might be worth consulting with an experienced independent agent who can advocate on your behalf, or exploring alternative insurers that could offer more accommodating policies.
**Have you experienced
