Understanding Homeowners Insurance Challenges: Multiple Claims and Policy Availability
Navigating homeowners insurance can become complicated when multiple claims are involved, especially across different properties and regions. Recently, some property owners have encountered difficulties securing coverage due to their claim history, even when the claims are infrequent and isolated to specific events.
Case Study: Insuring Multiple Homes Amid Claim Histories
Consider a homeowner who faced two separate hail-related roof claims within a span of three years. The first occurred in Texas in August 2023, following a severe hailstorm that required a roof replacement. Remarkably, this was their inaugural insurance claim during 15 years of residence at that property. After relocating to Colorado, the homeowner’s new property experienced a similar hail event, prompting another claim last month on a roof exceeding 12 years in age.
Historically, they’ve owned two homes simultaneously, maintaining insurance policies on both for approximately two and a half years before selling the Texas property last year. Throughout this period, they have expressed dissatisfaction with their current insurer, citing premium increases over the years and a recent policy underwriting change—shifting from Connect to Homesite.
Challenges with Insurers and Multiple Claims
When reaching out to potential insurers like State Farm, the homeowner was informed that the company is tightening its policies regarding clients with multiple claims within a short timeframe. This has raised questions about whether owning multiple properties and maintaining several policies should influence an insurer’s decision.
Key Questions Arising from This Situation:
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Should the fact that you own and insure multiple properties be considered when assessing risk and eligibility?
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Is it worthwhile to explore quotes from other providers, or will they also restrict coverage based on recent claims?
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Could engaging with a private insurance agent provide better options or personalized guidance?
Expert Advice and Considerations
Insurance companies often implement stricter policies after multiple claims within a brief period, viewing these as potential indicators of higher risk. However, the impact of owning multiple homes on insurability can vary by insurer. Some may consider the overall risk profile differently, especially if claims are isolated incidents.
For property owners facing similar challenges, consulting with a dedicated insurance broker or independent agent can provide tailored options and potentially reveal insurers with more flexible policies. They can also offer insights into how recent claims and multi-property ownership are viewed within the current insurance marketplace.
Final Thoughts
While claims history and property portfolio size are influential factors in insurance underwriting, they don’t necessarily preclude coverage. Exploring diverse options and seeking professional advice can be valuable steps toward securing suitable
