Understanding Home Insurance Challenges When You Own Multiple Properties: A Case Study
Navigating the world of homeowners insurance can be complex, especially for those with multiple properties. Recently, a homeowner shared their experience dealing with insurance providers after filing claims on more than one property within a short timeframe. This scenario highlights some important considerations for multi-property owners and those contemplating policy changes.
Background:
In August 2023, this homeowner had to replace their roof due to hail damage in Texas. Interestingly, in 15 years of homeownership, they had never filed an insurance claim before—making this their first-ever claim. After relocating to Colorado and owning both homes simultaneously for approximately two and a half years, they filed a claim on their Colorado property’s roof following a significant hailstorm. The Colorado roof was over 12 years old at the time.
Insurance Provider Changes:
Initially insured through Connect, the homeowner grew dissatisfied with the policy’s rising costs—premiums increasing from $3,000 to over $4,300 in three years—prompting them to seek alternatives. During their search, they contacted State Farm but were informed that the company is tightening its policies, particularly regarding clients with multiple claims within a short period.
Key Points of Inquiry:
The homeowner has several questions that resonate with many property investors:
– Should owning multiple properties influence how insurance companies evaluate claims and risk?
– Is it worth exploring other insurers, or will they encounter similar restrictions regardless?
– Could working with a private insurance agent be advantageous in such situations?
Takeaway:
While insurance companies implement policies to mitigate risk, homeowners with multiple properties often face additional scrutiny after claims. It’s essential to understand how multi-property ownership might influence underwriting decisions and premium costs. Engaging with experienced insurance agents—especially independent brokers—can provide tailored advice and potentially better coverage options.
For property owners, proactive communication and thorough research are critical. If you’re facing similar challenges or contemplating coverage adjustments, consulting with professionals who understand the nuances of multi-property insurance can make all the difference.
Disclaimer: Insurance policies and underwriting practices vary by provider and location. Always consult directly with licensed insurance professionals to receive advice tailored to your specific circumstances.
