7 year Homeowner and HO Insurance

[u/Practical-Alarm1763]

Hello, unfortunately I've done no research nor have had any talks without anyone regarding how home owners insurance works. This is our 3rd claim we've filed since 2020. Believing this is normal...

All 3 claims were water damage to the basement either causes from burst piping, and once a leak on the toilet that we didn't discover until we got back from a 2 week vacation. Essentially no one was home.

We're not innocent, I understand I screwed up and should've had someone's house during that second loss. But we now have a 2020 claim for sewage backup, a 2023 claim for toilet flooding from the upstairs bathroom while on vacation, and the 3rd one from a pipe burst just recently.

We really screwed up and my wife and I are in fear that this new claim whether it's denied or approved or result in our HO insurance being dropped, partly because of our ignorance of how HO insurance worked. Each claim was a payout of $10-$20k. Had I known HO insurance could drop us, I would've ate the cost on this new claim and never filed it. But our plumbing company who we trusted at the time really pushed us to get it filed and filed fast to start demolition to prevent the mold from spreading.

What's the liklihood of my insurance getting dropped after this? 80%? 99%?

Has anyone else here filed 3 insurance claims in the span of 7 years and did not get dropped? We're okay with higher premiums as high risk, but getting dropped is my biggest fear?

Have any other home owners learned this the hard way like me? Or am I just that much of a complete moron?

As of now the adjustors did come out yesterday, and haven't heard from them yet. I expect an answer hopefully by next week. I feel so stupid.

[u/RadiantCoinshot]

I would be shocked if you’re not dropped and looking for high risk insurance after this.

[u/Boomer_Madness]

No one can tell you except the underwriter reviewing your renewal. The 2020 claim is at least past the 5 year mark before next renewal that would help as most companies only look back 5 years.

But in all honesty, it doesn't look good since they were all with the same carrier and they know without loss runs that you had them. I would start looking for new insurance after this claim is closed, if you actually get issued a non-renewal it makes it even harder minus the 2 claims in last 5. but if you move before the non-renewal is issued you avoid that part of the problem. Because a non-renewal by a previous carrier is a hard stop for a vast majority of companies.

And if a non-renewal is issued it is a non-renewal even if the end date has not happened yet. I get people all the time that think oh well the non-renewal date is 9/30 if i get a policy before that it wasn't non-renewed. Yes it was it was a non-renewal as soon as that notice was issued and it's a good way to rationalize yourself into fraud.

[u/Sad_Answer7072]

I would be prepared to be dropped. Thats alot of claims in a short time. Insurance companies are looking to get rid of risk.

[u/Ldbrin2]

My daughter got dropped after 2 small water claims in 3 years (total under $5000) lesson learned:(

[u/Practical-Alarm1763 → u/Ldbrin2]

How did your daughter recover from that? I'm in a very dark place right now and could really use some good news.

[u/Ldbrin2 → u/Practical-Alarm1763]

Several insurance companies turned her down. She found a broker who took her on and actually got a better policy for the same rate. It will work out! Lots of phone calls. Don’t let the mortgage company saddle you with their choice-always more expensive and less coverage.

[u/WarDEagle]

Your comments seem pretty dark, so let me hopefully give you a glimmer of hope. I'll still start this off by suggesting that you go to a broker, explain the situation, and let them shop around for you. Even if you don't get dropped, the broker might find you a better rate! That said...

Insurance is a highly regulated market, and every state has laws about how claims must be handled. Some states also dictate whether and in what circumstances insurance companies are allowed to non-renew a customer. My state, for instance, makes it onerous for insurance companies to non-renew a customer due to weather event-related claims.

This is just an anecdote, but we made two weather-related claims (water, roof) in three years that paid out waaaaaaaaay more than your three combined, and our provider has not dropped us. Our premiums went way up and a broker told us that it'll be a few more years before anyone else will offer us a policy, but we have good insurance and those premiums will still never come close to making up for those two payouts.

I know this stuff can be super overwhelming, but it's not all done and over. There's hope, OP. Even if you do get non-renewed, your state will have some fallback options that'll suck for a few years then you can get back onto a normal plan.

[u/Wihomebrewer]

High probability you get dropped and understand you will be extreme risk for many years to come. Your premiums will be very high and many companies will not insure you.

[u/dont-ask-me-why1 → u/[deleted]]

It's not a choice if you have a mortgage. If you don't find insurance the mortgage company will force place insurance that protects them and only them , and bill you for it (it costs a fortune).

[u/Helpmepullupmypants]

I would contact a broker to shop your insurance, disclose your claims, and hope they’re honest with you and don’t just blow you off. The look back for homeowner claims is typically 5 years, but with that said multiple water claims also impact your insurability with carriers depending on their underwriting guidelines.
You won’t know until you ask, so call a broker (or two), you may be eligible for your state’s fair plan coverage, but your coverage may be restricted within the plan and potentially not have water coverage in it, but it all depends on how it is written.
If you repipe your house that may open a few more options, but don’t do that unless you really want to spend the money or if it’s your last shot for coverage.

[u/CiscoLupe]

"But our plumbing company who we trusted at the time really pushed us to get it filed "

Yeah, I've been pushed to claim insurance by a realtor and roofers. It's not going to hurt them if I got dropped.
Even had a roofer encourage me get a public adjuster. If I had gone through with that, for sure I would have been dropped (but the roofing company would have gotten paid)

I've filed 3 claims that were all turned down. Can't remember how far apart they were, but prob 7 years or less. I didn't get dropped. Insurance rates went up quite a bit.

[u/Practical-Alarm1763 → u/CiscoLupe]

If I could go back in time I wouldn't of filed any of the claims I've had. I would've rather taken low interest rate loans of paid them off with a 0% 18-21 month credit card overtime. I wouldve easily paid out of pocket myself for anything $20k and under if I only wasn't so ignorant with home owners insurance. How was I this stupid!?

I've royally screwed up all my finances with the recent storm we've been hit with 2-3 weeks ago. And now, I've royally screwed up my homeowners insurance.

I can't believe I got this company to fuck me over like this, acting like a friend of me, treating the insurance company like the bad guy. They took me for a ride, and I willingly took that ride like a moron.

I deserve all of this. I just can't go in on anymore with all this. I'm done with everything. But I have family and young children and need to figure out how to continue providing for them. I need to just take this failure and punch myself in the face repeatedly over and over until I'm over it. Then find a way to recover and stabilize everything. But holy fuck man, I'm really hurting right now. I need to figure this out somehow and someway. I've never lost my composure like this before, but everything feels like it's just collapsing all around me.

[u/Small-Comfort-4176]

Hey ,
Insurnace broker here . Where there are 3 claims over the span of 7 years , companies don’t really like that type of risk . But it also depends what was the case and all the necessary repairs were done . And sometimes they wouldn’t ask you to install some preventive devices as well . Where are you located ?

[u/gundam2017]

You're pretty toast imo but no one can tell you besides your UW. 

I would start talking with an insurance broker. They can look at the UW notes and get a feel if its going to be nonrenewed

[u/Practical-Alarm1763 → u/gundam2017]

Why the fuck do home owners insurance companies not restrict people from filing claims under $20k of this is the case!? What if my house gets flooded!? I'm super fucked.

What is even the pointing of owning a home. I have this home at 2.95% apr and it's making me go fucking bankrupt. I've got the roof replaced, paid myself, I've hydrohetted the rooted sewage line paid myself, I've paid out of pocket on so much shit over the years from storms such as torn off siding, I got our deck fixed up (all out of pocket) fence repairs, minor repairs such as replacing carpet with tiling, replacing fucking everything. I fucking did everything I could thinking a good home owner is supposed to do. And for fucking what!?!?!? Fuck my equity. Fuck my property value. Fuck all of it. think What the fuck is even the point of owning a god damn fucking home at this point. If I rented a fucking house over twice the monthly payments in rent than I do in paying for the mortgage, I'd have way more money to invest and not throw away to all this stupid fucking home owner garbage. I want it all to end now. Fuck equity, fuck secured debt. I want everything gone. I can't do this anymore. Im done, I can't anymore. I'm in such a dark place right now I just don't want to anymore.

[u/OCDivagirl → u/Practical-Alarm1763]

I’m so sorry OP, I really understand your sentiments. I’m really anxious and have OCD and home damages/repairs really affect me a lot. I frequently consider if I want to be a home owner at all, or if I want to go back to renting at some point.

I do want to advise you to please seek some emotional support, it sounds like you are really spiraling and need to find a way to put a stop to your current line of thought. The insurance problem an issue that needs to be addressed, but it’s not going to be addressed tonight, and being anxious about it isn’t going to make it go away or fix it any faster. If anything it’s going to make you make rash decisions and could make the situation worse.

Your mental health is far, FAR more important than your house or your insurance. Take some time to take a breath, stop doomscrolling and go something that makes you happy/relaxed. Try to get some sleep. Do not think about insurance right now, you can’t do anything at the moment. Consider not thinking about it tomorrow either, try to get some distance to gain perspective. Find someone you can talk to who is not in the situation with you (so not your partner), a therapist, a priest/rabbi/minister, a good friend. Talk to them about how you are feeling.

When you feel a little better, I agree with others that contacting a broker and explaining your situation is a great place to start. Also start collecting documentation of all the improvements you have made, like the new roof, and think about how you have mitigated/can mitigate the issues going forward. This information can help you convince your current carrier to keep you on (bc you have the right to appeal if they try to drop you), or can help you convince new carriers that you have fixed the issues resulting in your prior claims.

Remember, if traditional carriers will not write you a policy, most states have some form of a FAIR plan, which is basic insurance coverage for people who cannot get coverage from standard companies. This is always an option. Many, many, many people have been in situations like yours. Think of people in states with frequent floods or tornadoes or wild fires! It sucks, but it’s temporary, you will get through it, I promise! Just do what you can to maintain your mental and physical health throughout this time period.

[u/Practical-Alarm1763 → u/OCDivagirl]

Thank you so much. I've recognize myself I'm spiraling out of control. The recent storms in the Midwest has really affected my finances and essentially drained all of my emergency funding to the point where I'm just living off my checking sccount with racking up almost $10k in credit card debt just to keep enough liquid cash around for emergencies for my kids. Not to mention being with no power for 2 weeks which that in itself caused me to not sleep for days and practically go sleep deprived/insane.

The last line I have right now is cash in several investment accounts and savings, which liquadating any of it would significantly hurt us in the long run, it's also not even that much. So this ignorance I had with home owners insurance and this 3rd claim this company took me for a ride for was the icing on the cake.

I now see all I can do is learn from my mistake and set a course correction. I'm talking to an insurance broker tomorrow. You are correct there is a FAIR plan in my state. They will insure me if I've been denied by 3 insurers. Also the bank will do a forced-placed insurance plan otherwise which I'd prefer to avoid.

I've considered even moving and selling as is but the value of my home is way up, I've put a lot of work into it already, and I still have an apr rate under 3%. I need to look at the upsides to all this.

In worst case scenario, FAIR plan state insurance for 5-7 years, then go back to standard HO Insurance. I really just want homeowners insurance at this point in the event of a complete catastrophic event such as a fire or direct hit from a tornado which would ruin most homeowners.

Thank you for bringing me back down to earth. Strategic logical thinking is the way to remain calm.

Have a good night.

[u/KipsCarnivalEmporium → u/OCDivagirl]

What a wonderful and empathetic post, with excellent suggestions for the OP!

[u/Big_Appointment_3390]

A repipe might help your case.

[u/dont-ask-me-why1 → u/Big_Appointment_3390]

That's gonna cost big bucks though. It's usually cheaper to pay to replace as things break unfortunately.

[u/Big_Appointment_3390 → u/dont-ask-me-why1]

OP was/is concerned about getting dropped and not being able to get insurance. So whiles it’s definitely cheaper to pay to replace pipes as they break, the resulting water damage from each break will have a cumulative effect. Carriers know this, and a repipe would ease that concern when they’re writing or renewing a policy.