Understanding Homeowners Insurance Challenges with Multiple Claims and Multiple Properties
Navigating the world of homeowners insurance can be complex, especially when managing multiple properties and claims. Recently, I encountered some hurdles when trying to secure coverage with a well-known insurer and wanted to share insights that might help others facing similar situations.
Background: Multiple Claims in a Short Timeframe
In August 2023, our Texas home underwent a roof replacement after a damaging hailstorm—an event that was unique in our 15-year ownership of that property. That hail event was the only claim we’ve ever made on that house, marking it as our first and only insurance claim in our entire insurance history.
After relocating to Colorado, we purchased a new home. Our old house was rented out for roughly two and a half years before we sold it last year. The Colorado property, which is over 12 years old, also suffered hail damage recently, prompting us to file another claim last month.
Current Insurance Profile and Concerns
We’ve been insured through Connect, but we’ve experienced significant premium increases over the past three years—rising from $3,000 to over $4,300 annually. Frustrated with the rising costs and the recent policy renewal, we started exploring options with other insurers, including reaching out to State Farm.
However, during our inquiry, we were informed that State Farm is “tightening restrictions” regarding customers with multiple claims within a three-year period. This raises important questions:
- Should owning multiple properties influence an insurer’s decision regarding claims history?
- Is it worth pursuing quotes elsewhere, or is this decline indicative of a broader industry trend?
- Could working with a private insurance agent offer better opportunities or guidance?
Key Takeaways
Managing multiple homes often requires understanding how insurers evaluate risk. While a single claim in a three-year period might be manageable, multiple claims across different properties within the same timeframe can influence an insurer’s willingness to provide coverage or affect premium costs.
If you’re in a similar situation, it’s advisable to:
- Keep detailed records of your claims and property histories.
- Consider consulting with experienced independent insurance agents who can navigate the market and potentially find suitable coverage options.
- Understand that insurers are increasingly cautious with multiple claims, especially within short periods, to mitigate risk.
Final Thoughts
Dealing with insurance providers can be challenging, especially when policies become less flexible due to recent claims. Exploring multiple options and seeking experienced guidance can make a significant difference in finding the right coverage for your properties
