Understanding Home Insurance Challenges When Owning Multiple Properties
Navigating the complexities of home insurance can be challenging, especially for property owners with multiple residences. Recently, I encountered a scenario that highlights some of the hurdles homeowners face when dealing with insurers who tighten criteria after claims history.
A Bit of Background
In August 2023, I had to replace the roof of my Texas home due to damage from a severe hailstorm. This was my first and only insurance claim in 15 years of homeownership. During that period, I owned just the one property, which I maintained diligently and without prior issues.
After relocating to Colorado, I became a multiple-property owner—renting out the Texas home for a couple of years before selling it last year. My Colorado residence, which has a roof over 12 years old, also sustained damage from recent hail and prompted another claim last month.
Insurance Providers and Claim Histories
Currently, I am insured through Connect, but I’ve grown dissatisfied with their decision to transfer my policy underwriting to Homesite and with the significant premium increases over the past three years—rising from around $3,000 to over $4,300 annually.
While exploring options and seeking quotes from various providers, I contacted State Farm. I was informed that they are particularly cautious about clients with multiple claims within a short timeframe, specifically within three years.
Key Questions for Homeowners in Similar Situations
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Should the ownership of multiple properties influence the insurer’s assessment?
Many policies consider the broader risk profile, which can be affected by multiple policies. It’s worth discussing how ownership of additional homes might impact coverage eligibility or premiums. -
Is reaching out to other insurance providers worthwhile, or will they echo the same restrictions?
It can vary. Some companies may have stricter policies regarding multiple claims, but others might be more flexible—especially if the claims are spread over different properties or years. -
Would working with a specialty or independent insurance agent be advantageous?
Independent agents often have access to a broader range of insurers and may offer more tailored solutions based on your unique circumstances.
Final Thoughts
Insurance policies and their underwriting criteria can sometimes feel opaque, especially when handling multiple properties and claims. It’s advisable to consult with experienced independent agents and explore all available options to find the best coverage for your specific situation. Staying informed and proactive is key to securing the protection you need without excessive costs.
