Understanding Insurance Denials: When Multiple Claims Impact Your Coverage
Navigating the world of home insurance can be complex, especially when you own multiple properties and encounter claim-related hurdles. Recently, a homeowner shared their experiences with insurance providers and their struggles to secure coverage after multiple claims within a short period.
Background: A Unique Claims History
The homeowner previously owned a property in Texas, where they experienced a hailstorm in August 2023 that mandated a roof replacement. Notably, this was their only insurance claim in 15 years of ownership—making it the sole claim they had ever filed in their lifetime up to that point. After moving to Colorado, they acquired a second home. The Colorado residence also faced a hailstorm with significant damage to the roof, prompting another claim last month.
Insurance Provider Challenges
Currently insured through Connect, the homeowner expressed dissatisfaction with the company’s decision to transfer their policy underwriting to Homesite, as well as with steadily rising premiums over the past three years—from $3,000 to over $4,300 annually. While attempting to obtain competitive quotes, they contacted State Farm and encountered a concerning message: the insurer appears to be “cracking down” on clients with multiple claims filed within three years.
Key Questions and Considerations
This situation raises several important questions for property owners:
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Does owning multiple properties and policies influence insurance underwriting decisions?
Typically, having multiple homes may either increase premium costs or trigger more scrutiny due to a perceived higher risk profile. However, insurers often consider the claims history on each property individually and collectively. -
Is it worthwhile to reach out to other insurers, or will most providers adhere to similar policies?
Insurance companies tend to have similar underwriting criteria, especially regarding recent claims. Nonetheless, shopping around with a knowledgeable broker or agent can sometimes uncover options more tolerant of claims history. -
Could working with a private insurance agent or broker offer better prospects?
Independent agents can provide tailored advice and may be more flexible in finding coverage that aligns with your specific circumstances, especially if you have a history of claims.
Final Thoughts
While claims history is a significant factor in insurance underwriting, owning multiple properties shouldn’t automatically disqualify you from coverage, but it does require careful planning and professional guidance. If you’re facing challenges getting insured or facing high premiums, consulting with an experienced insurance broker might open new pathways to suitable coverage options.
Remember: being proactive and thoroughly exploring your options can make a substantial
