Understanding Insurance Denials: When Multiple Claims Impact Homeowners with Multiple Properties
Navigating the complexities of homeowners insurance can be challenging, especially when past claims influence future coverage options. Recent experiences highlight important considerations for property owners with multiple residences.
A Case in Point: Claim History and Insurance Eligibility
In August 2023, a homeowner in Texas experienced a hailstorm that necessitated a roof replacement. Notably, this was the sole insurance claim they had filed over a 15-year period for that property—making it their only claim to date. After relocating to Colorado and owning a second home for approximately two and a half years, another hail-related roof claim was filed last month on the new property. The Colorado home’s roof was over 12 years old, and the recent storm caused significant damage.
Insurance Provider Changes and Rising Premiums
Currently insured through Connect Insurance, the homeowner expressed dissatisfaction with the policy’s rising costs—premiums have increased from $3,000 to over $4,300 in three years—partly due to the insurer selling their policy to Homesite. While shopping around, they encountered an alarming response from State Farm: the company indicated a more restrictive stance toward applicants with multiple claims within a three-year period.
Key Questions for Property Owners
This scenario raises several important questions for homeowners managing multiple properties and claims:
- Does owning multiple homes and policies influence insurance approval or premium rates, especially in light of recent claim history?
- Is it worthwhile to seek quotes from other insurers, or will they typically respond similarly regarding claims history?
- Could engaging a private insurance agent provide better guidance or more flexible options?
Final Thoughts
Insurance companies often adjust their policies based on claim history, particularly when multiple claims occur within a short timeframe. However, the nuances of owning multiple properties and the potential benefits of consulting specialized agents are worth exploring. If you find yourself in a similar situation, consider contacting multiple providers and consulting with an independent insurance professional to find the best coverage options tailored to your specific circumstances.
