Understanding Insurance Challenges When Insuring Multiple Properties: A Case Study
Navigating the complexities of homeowners insurance can be challenging, especially when history and multiple policies come into play. Recently, I encountered a situation that highlights the intricacies insurers consider when assessing risk, and I’d like to share this experience to shed light on potential considerations for property owners.
Background:
In August 2023, I had to replace the roof of our primary residence in Texas due to hail damage—a common occurrence in the region. This was the first and only insurance claim I had ever filed in my 15 years of homeownership, making it a notable point in our insurance history.
Having since relocated to Colorado, we’ve been managing two properties simultaneously: renting out the Texas home until its sale last year, and owning our new Colorado residence, which has an age of over 12 years. Recently, our Colorado home also experienced hail damage, prompting us to file another claim.
Insurance Providers and Recent Changes:
Currently, we are insured through Connect, but dissatisfaction has grown due to their policy changes—specifically the transfer of underwriting responsibilities to Homesite—and a significant increase in premiums over the past three years, from $3,000 to over $4,300.
While shopping around, I contacted State Farm for potential coverage options. However, I was informed that the insurer has tightened its policies concerning clients with multiple claims within a short span—particularly, claims made within a three-year period.
Key Questions and Considerations:
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Does owning multiple properties and policies influence their decision?
Should the fact that I hold more than one property affect how insurers evaluate my risk profile? -
Is pursuing other insurers worthwhile, or will I face similar roadblocks?
Are my chances of obtaining coverage limited regardless of the provider, given my claims history? -
Would engaging a private insurance agent be advantageous?
Could an experienced agent help navigate these restrictions and locate suitable coverage options?
Conclusion:
Situations like these illustrate the importance of understanding the nuances of homeowners insurance, especially for owners with multiple properties or recent claims. Insurance companies often reevaluate risk based on claim history, property age, and other factors—sometimes leading to increased premiums or coverage restrictions. Consulting with experienced professionals or agents might provide alternative pathways to securing the coverage you need.
If you’re facing similar challenges, it’s advisable to review your coverage options carefully and consider expert guidance to find solutions tailored to your unique circumstances.
