Managing your Claim History

Most of us here in Saint Charles have experienced storm damage in 2024 or 2025 and although "Weather related" claims are often permitted by Insurance Carriers you can't forget it's still considered a "STRIKE" on your recent history.   What most homeowners don't know is that Insurance carriers have guidelines that dictate how many "allowable claims" are permitted in a 3-year and 5-year period.   While every carrier is unique, MANY carriers have adopted a 3-strike guideline and any 3-claims in a 3-year period could earn you a Non-renewal notice.   Perhaps more concerning than this is learning that some types of claims are so damaging to your history that just 2-claims in a 3-year period could be enough to receive a non-renewal notice.  The most common, damaging claims are "water losses".   

With most of us here already showing a Weather related loss in our history a single "water-claim" could be enough to earn you a non-renewal notice.  Water-losses are common often resulting from dishwashers, washing machines, or leaking/cracked pipes.   Underwriting guidelines have recently dubbed "water-losses" as a HUGE red-flag in a homeowners insurance history and many carriers WILL NOT write you a new policy if you show a water-loss in your 3 or 5 year history.   Takeaway Message... grow your cash reserve, emergency fund and AVOID calling in small water-losses of $5,000 or less.   This modest claim can easily put you on the road to ruin not only earning you a non-renewal, but also making finding a replacement carrier that much more difficult to find and often less affordable for years ahead. 

If you have questions about your claim history or the history your home had before you bought it, reach out and I'm always available to help you strategize. 

Warmest regards,

Jeremiah Essmyer

jessmyer@farmersagent.com