Understanding Insurance Challenges for Multi-Property Owners: A Case Study
Dealing with Homeowner’s Insurance After Multiple Claims: What Property Owners Need to Know
Navigating the world of home insurance can be complex, especially for those who own multiple properties. Recently, a homeowner sharing their experience highlighted some common concerns about coverage eligibility and insurance company policies.
Background: A Tale of Two Homes and Claims
In August 2023, this homeowner replaced the roof of their Texas residence due to storm damage, specifically hail. Remarkably, this was their first-ever insurance claim in 15 years of homeownership. Having owned a second property in Colorado for about two and a half years—renting out the former Texas house—they recently filed a claim there after a severe hailstorm affected that roof, which is over 12 years old.
Insurance Snapshot: Changing Providers and Rising Costs
Initially insured through Connect, the homeowner expressed dissatisfaction with the provider’s decision to transfer policy underwriting to Homesite and with significant premium increases over the past three years—from around $3,000 to over $4,300 annually.
The Challenge: Insurance Rejection Due to Multiple Claims
While seeking new quotes, the homeowner contacted State Farm but was informed that the insurer is “tightening” policies and may be less willing to insure clients with multiple claims within a three-year window.
Key Questions Raised
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Should owning multiple properties—each with its own insurance policy—be considered collectively by insurers, or are claims evaluated separately?
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Is it worthwhile to explore other insurance companies, or might they adopt similar policies regarding multiple claims?
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Could engaging a private insurance agent provide better options or guidance in such situations?
Takeaways for Property Owners
This case underscores the importance for multi-property owners to understand how claims history across different properties may impact their insurability. It also highlights that insurance policies and underwriting criteria vary among providers, and professional guidance may be beneficial.
If you’re navigating similar challenges, consider consulting with independent insurance agents who can offer tailored advice and potentially access more favorable coverage options. Always review your claims history and understand how it may influence future policy eligibility and premiums.
Remember, proactive communication and professional assistance can make a significant difference in maintaining comprehensive and affordable home insurance coverage across multiple properties.
