State Farm denied my renters policy four weeks after I paid in full, citing previous homeowners insurance claims as the reason. My husband and I are relocating across the country for work. We sold our home to pursue a great job opportunity and are currently renting until we settle in and complete the sale of our house, after which we’ll begin searching for a new home to buy. I purchased a $300,000 renters insurance policy from a local State Farm office and paid the entire 12 months upfront. Then, about a month later, the agent called to inform me that due to past claims on our homeowners policy (not with State Farm), they were rescinding my policy. I was given a deadline of April 24th before my coverage would lapse.
Initially, I assumed there had to be a mistake. I was upfront about a claim from 2023 for roof damage (related to storm damage and recalled shingles) before I bought the policy. When I asked the agent about the multiple claims I hadn’t disclosed, I remembered that we also had a second claim for a tree removal due to storm damage that year, which my husband had filed. I asked if the denial was simply due to my unintentional oversight regarding this second claim, but the agent clarified that the denial was not based on that. Instead, State Farm felt that we had made an excessive number of claims on our homeowners policy.
Throughout our history, my husband and I have had 4 or 5 renters policies prior to buying our home, and we’ve never put in a claim on any of those.
I’m not questioning whether State Farm is allowed to deny coverage—clearly, they are. However, when I discussed this with my family, they were genuinely confused about the situation. Did I make a mistake here? Is this common practice? A quick online search didn’t yield any helpful information. Now I need to find another renters policy. Will it be challenging to get coverage due to my two past homeowners claims? Is there something specific I need to disclose in the future? I’m completely at a loss. While I’m willing to take responsibility for not recalling the second claim, I’d like to know how to avoid similar issues moving forward.
TL;DR: My renters policy was denied due to claims on a previous homeowners insurance policy with a different company.
I’m sorry to hear that you’re going through this frustrating situation. It can be really disheartening to have a policy denied, especially when you thought you were upfront about your past claims. Unfortunately, insurance companies often have their own criteria for evaluating risk, and they may be particularly sensitive to the number of claims made, even if those claims were under a different policy or provider.
Here are a few steps you can take moving forward:
Find Out More: Reach out to other insurers and inquire about their policies regarding claims history. Some companies may be more lenient than others regarding past homeowners claims.
Get Everything in Writing: When you apply for new coverage, make sure to ask for documentation that outlines exactly what information you need to disclose. This can help prevent any misunderstandings in the future.
Ask About Your Claims History: You have the right to request a copy of your claims history from databases insurers use, such as the Comprehensive Loss Underwriting Exchange (CLUE). Knowing what past claims are on file can help you be more precise in future applications.
Consider Working with an Insurance Agent: A knowledgeable insurance agent can help you navigate the application process with various companies, ensuring that you present your history clearly and accurately.
Keep All Documentation: Maintain records of any insurance claims you make, as well as communications with your insurer. This can help you remember the details better in the future.
Reflect on Scope of Coverage: When choosing a new renters policy, take the time to compare various options that fit your needs. Look for positive reviews or recommendations from people who’ve had similar experiences.
While it requires some effort, many people successfully find other coverage options after a denial. Don’t hesitate to ask questions during the application process and be as transparent as possible to avoid similar issues in the future. Good luck, and I hope you find the coverage you need soon!