Title: Navigating Homeowners Insurance Challenges: When Multiple Claims and Property Ownership Raise Concerns
In the world of homeowners insurance, experience can sometimes be bittersweet. Recently, I encountered a situation that highlights the complexities insurers sometimes present when managing policies across multiple properties and claim histories.
Background Context
In August 2023, we needed to replace the roof of our Texas home due to hail damage—a common concern in that region. This was the first insurance claim we’d ever filed in 15 years of homeownership, making it a unique incident in our entire experience with home insurance. Over the years, we’ve owned two properties: one in Texas and a second in Colorado, which we’ve held for approximately two and a half years. We rented out the Texas home after moving to Colorado and sold it last year.
Current Insurance Situation
Currently, our coverage is through Connect Insurance. However, we’re considering switching due to dissatisfaction with their decision to transfer our policy underwriting to Homesite, coupled with a significant premium increase—rising from around $3,000 to over $4,300 in just three years.
Recently, during a quote comparison, I reached out to State Farm. To my surprise, I was informed that they are “tightening policies” on clients with multiple claims within a three-year span. This response prompted several questions:
- Does owning multiple properties and having multiple policies influence how insurers evaluate risk and eligibility?
- Should I bother reaching out to other companies, or will they give a similar response based on my claim history?
- Would working with a private insurance agent potentially improve my chances or provide better guidance?
Reflections
The situation underscores how insurers assess risk based on recent claims rather than the overall ownership picture. While owning multiple properties might seem like a financial strength, some insurers interpret multiple claims over a short period as increased risk, leading to coverage hurdles or higher premiums.
Final Thoughts
If you find yourself in a similar scenario—especially with a clean, long-term claim history but recent claims—consider exploring multiple avenues:
- Engage with independent insurance agents who can shop around your coverage more comprehensively.
- Be transparent about your property ownership structure, as some insurers may be more accommodating.
- Understand that policy underwriting criteria can vary widely between providers, so persistence and professional guidance can be valuable.
Insurance can feel complicated, but staying informed and exploring all options ensures you find the coverage that best fits your needs.
