Understanding Home Insurance Challenges: Multiple Claims and Property Ownership
Navigating the world of home insurance can sometimes be complex, especially when history and property ownership come into play. Recently, homeowners shared their experience about difficulty securing coverage from major providers due to multiple claims within a short period. Here’s an insightful look into their story and some key questions to consider.
A homeowner’s journey: claims and property ownership
In August 2023, this homeowner replaced their roof after a hailstorm in Texas—a common occurrence in the region. Over the 15 years living in that residence, it was their only insurance claim, marking the first such incident in their entire history of property ownership.
After relocating to Colorado, they acquired a new home and continued managing their previous property, which was rented out for about two and a half years before selling last year. The Colorado home experienced a large hail event, prompting another insurance claim last month.
Challenges faced: insurance provider limitations
Currently insured through Connect, they expressed dissatisfaction due to policy underwriting being transferred to Homesite, accompanied by significant premium increases over the past three years—from approximately $3,000 to over $4,300 annually. When seeking quotes elsewhere, they contacted State Farm, only to be informed that the company is “tightening” its policies against applicants with multiple claims within a three-year window.
Key considerations and questions
-
Does owning multiple properties and policies impact insurance eligibility?
Many insurance companies consider the total claims history across all your properties. However, some likewise distinguish between multiple owned homes and individual claims. Clarifying how multiple policies influence underwriting decisions can help homeowners plan better. -
Is it worthwhile to explore other insurance providers?
Given the reported stance of State Farm, exploring other companies might be beneficial. Different insurers have varying thresholds and risk management criteria, so obtaining multiple quotes could potentially improve options. -
Would working with a private insurance agent be advantageous?
Independent agents can often provide personalized advice, access to multiple carriers, and assistance navigating complex claims histories. Engaging with an experienced broker might open doors to coverage options that direct inquiries to large insurers cannot.
Final thoughts
Managing homeowner insurance, especially with multiple properties and claims history, requires strategic planning and research. While some providers tighten restrictions based on recent claims, there’s value in exploring all available avenues—whether through other insurers or expert agents—to find coverage that aligns with your needs.
If you’re facing similar challenges, consider consulting with a knowledgeable
