r/Insurance • u/pauses-then-says • Apr 28 '26
Home Insurance State Farm says I’m uninsurable because 2 years ago I submitted a claim and then decided to pay for it myself ?
I have home owners insurance and 2 years ago I had a pipe leak and needed a repair. I couldn’t get a hold of the local office so I submitted a claim online. Then State Farm called me and explained that the repair would cost less than the deductible so that I would be better off not using the insurance.
Now 2 years later I’m buying a new house and called for a quote on insurance and they said we’re uninsurable because we tried to use the coverage once even though we did not use it?? They said it’s a “loss”. And they said they have to reach out to underwriting to see if the can make an exception.
Is this normal? I am so confused.
We’ve been home owners for 10 years and never made a claim before.
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u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. Apr 28 '26
Yes, this is normal. SF isn't saying you're uninsurable, they're saying they don't want to insure you. There are plenty of other carriers out there - find yourself a decent local broker or independent agent and have them shop around for you.
Lots of people have to learn the hard way that claims (and especially HO claims) should really be reserved for big losses. Insurance companies (obviously) don't want to pay claims if they don't have to, and they have a strong preference for policyholders that never file claims. They understand that sometimes unavoidable things happen (trees falling on roofs, lightning strikes, big storms, etc.), and those things can lead to big losses. And that's what insurance is for.
A small pipe leak that costs a few hundred to repair any damage caused (or even a few thousand) is not what insurance is "supposed" to be used for. And filing a claim for such a de minimum loss sends a strong signal that this is the sort of policyholder that intends to utilize insurance for relatively minor things. This is simply not the sort of policyholder carriers wish to insure, and when the market favors carriers, they stop insuring them.
Every claim is a claim. Full stop. Zero payout is still a claim. Withdrawn without payment is still a claim. Fully subrogated is still a claim. And SF really, really doesn't like policyholders who make claims.
In the future, it's best to get a good understanding of exactly what you're dealing with when something happens before bringing a claim. You'll find someone to offer a policy here. Good luck.
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u/ahugeminecrafter Apr 28 '26
So frustrated that I filed a claim a month ago when a contractor pushed me to for a minor roof flashing/seal plate fix. They claimed that when fixing those they might find mold or something and that filing the insurance claim would cover it.
I begrudgingly did it out of fear it would be very expensive and then insurance said there was no coverable damage so they wouldn't pay anything out. I worked with a different contractor and fixed for ~5k
But now I have a claim on my record...
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u/Business_Chart_5733 Apr 29 '26
Yeah, roof contractors are super shady this way. I know someone who sued his insurance company while working with some of these shady people and while the company settled, nobody would accept him. He ended up in the state pool for high risk policies.
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u/TraditionalAd9393 Apr 29 '26
If you have no insurable damage then you don’t have a claim on your record.
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u/Traditional_Job_4280 Apr 29 '26
False. If you call in a claim, even if you NEVER follow thru with it, YOU HAVE A CLAIM ON YOUR POLICY AND IN PUBLIC RECORDS THAT INSURANCE COMPANIES KEEP.
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u/TraditionalAd9393 Apr 29 '26
I’m an insurance executive and that is only partially true.
In OP’s case you have a record of contact with your insurance company regarding possible damage. It was deemed not covered for whatever reason by the policy which means it cannot be rated for or negatively impact the policyholder. OP would not have a “claim” because no covered loss occurred.
If OP would have covered damage and decide not to continue with a claim then there would be a “claim” on record with nonpayment which can negatively affect the policyholder because a covered loss did occur.
These two situations are not the same thing because one is not a covered situation and one is a covered situation the policyholder chose not to pursue.
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u/Thegrozzbbq Apr 30 '26
So why is snake farm declining to insure him now?
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u/TraditionalAd9393 Apr 30 '26
I take everything I read on here with a grain of salt. OP also said State Farm told him he was uninsurable which is definitely not what they told him.
I think OP may have edited the original post because I do not remember it reading as it does now (if they didn’t I need glasses). Earlier I’m fairly certain it said the insurer deemed it not a covered loss and now it says the insurer informed them the repair would be less than the deductible so they decided not to continue with the claim.
In this instance a claim would show because a covered loss DID occur but OP decided not to pursue it.
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u/pauses-then-says Apr 28 '26
That … sucks. I’m bundled with them for car insurance too so I guess I need to change everything. I left a great long standing policy with Travelers to bundle with State Farm. And now I’m screwed. Ugh.
Thanks for the info though
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u/KindaTwisted Apr 28 '26
You might as well. You're going to lose your multi policy discount so auto is going to increase at renewal regardless of anything else.
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u/QuriousCoyote Apr 28 '26
You're not necessarily screwed. You might end up with better coverage, a lower premium, or both now that you have to shop around.
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u/Sure_Comfort_7031 Apr 28 '26
The good news is that it’s incredibly easy to drop a policy and get a new one. Especially with a broker, my local guy looked at our HOI and Auto and called around and got us lower, we had to sign a letter they were handling cancelling the old auto policy for us when they moved to a new HOI provider, bundled and we’re done.
Every 6-12 months I surf around looking at HOI and auto rates, sometimes they can beat, sometimes not. If we’re within 25$, I just let it ride.
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u/OkFriend1520 Apr 29 '26
Retired insurance agent here. FWIW, bundling is no longer a guarantee of lower pricing. The last 2 years I have had my homeowners policy with The Hartford and my auto policy with USAA. Neither could offer me a better bundled price. Good luck in shopping your policies!
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u/cindyb0202 Apr 28 '26
State Farm and Allstate are the worst.
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u/justmedownsouth Apr 29 '26
Liberty Mutual straight up told me that the only reason they were insuring our home was because we had been with them so long. The premiums have risen exponentially, but with a 12 year old roof, no one else wants us. Of course, we wouldn't dare file a claim for anything. So what's the point of insurance?
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u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. Apr 29 '26
If your house burned down, you'd file a claim. If a tree fell through the roof causing $80K in damages, you'd file a claim. If a storm tore half the roof off and filled the inside with rainwater, you'd file a claim. Etc. And those sots of claims make sense.
But if you had a small leak that damaged $2,000 worth of flooring or you backed into you garage door that can be replaced for $2,000, etc., then maybe it's not the best idea to file a claim.
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u/Prufrock-Sisyphus22 Apr 29 '26
Problem is a lot of people are using it as such or using it to get new roofs when they didn't maintain it.
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u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. Apr 29 '26
Well, they try to do so, but carriers don't pay for new roofs just because they're damaged. There has to be a covered event that damaged the roof, and then the policy's coverage provisions often limit recovery to just the damaged sections or the value of an old roof (or sections of the old roof).
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u/GearBox5 Apr 28 '26
Does it also apply to a vehicle insurance? And does every claim affect your rates?
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u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. Apr 29 '26
Kinda, sorta, and it depends. Some states forbid premium increases and/or surcharges for not-at-fault and/or comprehensive claims regardless of dollar amount/severity. Some states forbid premium increases for PIP/med-pay claims and/or UM/UIM claims. Other states do allow for premium increases following such claims, although as a general rule, a no-fault claim will impact premium considerably less than an at-fault claim.
And even in those states that restrict the ability to raise premiums, carriers can use claims history in their initial underwriting and renewal decisions.
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u/Glittering-Rush-3001 Apr 30 '26
Agree with this - most if not all use a ‘credit’ based model. I’ve always likened not at fault claims to applying for a credit card. There is some impact but it’s relatively small but do it enough times and your score suffers, sometimes significantly. Claims history matters particularly when you are shopping around but also some with your current carrier. Making calculated occasional changes when needed is the best method to keep rates down over the long haul, and for claims keep your punches limited but make em count
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u/Rooooben Apr 28 '26
I love how insurance is “pay me x for these coverages, but if you dare to ask us to actually perform the contract we will drop you like a hot potato.
Love to collect premiums as long as you aren’t gonna ask them to do anything. If it’s supposed to be catastrophic coverage only then stop offering coverage for smaller things.
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u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. Apr 28 '26
You're not wrong, but you're not as right as you think you are either. If it was your money, insuring other people, you would do the same.
I agree that insurance company should make it clear that they're not going to respond until a large loss has occurred instead of saying they'll take care of the little things. But none of this is really a secret. Anyone who does even a minimal amount of research when it comes to insurance should be able to understand the difference between what they say in their commercials and what they say when it comes time to write you a check. And they're not any different than any other business where there's a gulf between marketing and what actually happens.
Different companies have different risk tolerances in different markets. In some years, State farm will offer you something even if you've had recent claims, well, in other years, the slightest hiccup will knock you out of consideration.
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Apr 28 '26
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u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. Apr 28 '26
Nope. That's not how insurance works. Premium is not a savings plan, it's the cost of transferring risk and loss. If you prefer to put only your own money at risk, you are free to do so as long as your mortgage company doesn't require insurance (or you don't have a mortgage).
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Apr 28 '26
[deleted]
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u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. Apr 28 '26
Maybe you could audition for that gig...
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u/DeepPurpleDaylight Apr 29 '26
If it’s supposed to be catastrophic coverage only then stop offering coverage for smaller things.
Coincidentally, you actually can make it work like that by setting a higher deductible, which has the side benefit of lowering your premium.
Also, they aren't legally obligated to insure you after your policy term ends, just like you're not required to keep them a your insurer.
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u/FindTheOthers623 P&C Licensed PL Underwriter Apr 28 '26
Completely normal. Every insurance carrier has their own underwriting guidelines and you dont fit theirs. There are a thousand other insurance companies out there.
Once you file a claim, it will remain on your record for 3-5 years, regardless of how much (if anything) was paid out. People who file one claim are statistically more likely to file more claims. Especially small claims. Don't ever file a claim that is below (or even near) your deductible.
You have made a claim before. That is why you are being declined now.
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u/DartTheDragoon Apr 28 '26
In many places insurance companies aren't really looking to expand their book of business right now. They are setting strict underwriting guidelines to reduce their exposure as much as possible. If your 0$ claim means you do not currently meet their guidelines then there isn't much for you to do besides shop around. Someone will insure it.
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u/InternetDad Apr 28 '26
Insurance companies arent obligated to insure you. Find an independent broker who can shop for you and locate a company who is happy to take your business.
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Apr 28 '26
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u/nofishies Apr 28 '26
What people don’t realize is once you call and ask about it. There’s a claim number. It doesn’t matter if they pay you any money.
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u/LacyLove Apr 28 '26
I think a few things are happening.
You filed a previous claim, even if it didn't pay out it stays on your record.
You are buying a home in NJ.
You are buying a home with a pool.
Those 3 combined may turn off insurers.
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u/MarsRocks97 Apr 28 '26
Unfortunately, insurance companies keep a record of every claim and every call reporting damage. Don’t call to report damage unless you absolutely know you are going to file a claim.
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u/WhyNotPal Apr 28 '26
Independent Insurance Agent here. We are starting to come out of a hard market. The last few years homeowners has been hard to place. These last few months carriers are relaxing underwriting and wanting business. This explains why only one claim is making it difficult. I think you will have much better luck with other carriers.
As to when you file a claim. This is something you should always discuss with your agent. You don't want to file a claim unless it's "worth it". I always advise my customers to get a roofer out there and get an estimate. I'd say more than half the time it's either no damage or well below their deductible. Personal lines insurance is based on occurrence, not the amount paid out. That claim that you filed with actual payout counts as much as one that had tens of thousands paid out. You call me, I talk it over with you and once we figure out it's not a claim it's over. I don't notify or start a claim. State Farm they may just file the claim without consultation.
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u/TheProFettsor Agent since 2003 Apr 29 '26
OP filed the claim online, no agent input. You hit the nail on the head, always always always call your agent first, always. We do the same as you, get a roofer or contractor out to look at the damage and get an estimate. If the claim is worth it, file. If it’s not, we keep it between us.
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u/flintsmith Apr 28 '26
To be clear, talk to your independent agent. Just asking the company agent about damage will open a claim.
At least that's how it is with auto.
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u/JustApplyC2H2 Apr 28 '26
They don’t want customers that expect to be able to collect on a claim in the event of a loss. They only want customers that send them piles of cash and want nothing in return. Ever.
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u/Shawarma-Queen Apr 28 '26
Whether or not you use the claim, it will “count against you”
As someone who works in property damage, State Farm is a nightmare for both clients and vendors.
If you can: AAA, Chubb, The Hartford, and Travelers are decent in terms of indemnifying their clients.
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u/jacob6875 Apr 28 '26
Just switch to another company. I never filed a claim in 7 or 8 years and my home insurance randomly dropped me and wouldn’t give me a reason other than I was to high risk and they dropped a bunch of others also.
Just went with a new company for a slightly lower price.
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u/NeverFailBetaMale Apr 29 '26
I also learned this the hard way. Basically never make a HO claim unless your house burns down. At least until the world is more just and so on.
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u/Business_Chart_5733 Apr 29 '26
Claims are only counted for 3 years from the loss date on a homeowners policy, and on occasion 5 years. You can always reapply when that time period passes, and its already been two years.
I work in home insurance and think its a little strange that one claim is enough to block you. But its likely listed as what's called a "claims no pay" which can be viewed as an attempt to get them to pay for something not covered.
SF has cheap rates and thus tight underwriting standards. Get someone else until the claim time period is up. Ask the agent how long that is to be sure.
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u/pauses-then-says Apr 29 '26
OK thanks, I’ll try.. I like my bundle and don’t want to switch just because I’m moving to a new house.
I’ll call again tomorrow
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u/DeepPurpleDaylight Apr 29 '26
You should never ever ever for a homeowners claim unless the damages is significantly over your deductible. You made the mistake many people do. You didn't get estimates first. Now you have a claim on your record. While in my opinion, they shouldn't drop you for this alone, but legally, they are well within their rights.
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u/PuzzleheadedFun3013 Apr 30 '26
I get why this is frustrating. The actual problem isnt necessarily that you filed a claim. Most carriers expect people to have claims it in most cases shows responsibility to take care of your home not just let stuff fall apart. With few exceptions (fire, theft) most carriers expect it. The problem lies in one spot. You call your insurance company to say your home is damaged in some way shape or form, they record that. You realize it was a $30 fix, and didn't need to file that claim after all. Your company ads a note ( internal note, there is no way possible for this to be seen by any other company, or potentially the same company on a different property.) Next company pulls a record and sees that you said you have damage to your home, and they have no way to see that it has been fixed. Meaning in their eyes your home is damaged and has not been repaired. Most insurance companies will not insure anything with prior stated damage that has not been repaired. The only way around that most times is to have a full inspection of the property. That is something that could cost several hundred dollars. For future instances always get a quote on repairs for things before calling your insurance company. If its less than your deductible it's never worth it. Those can show for future renewals, different carriers you try to get quotes from, and potential to not cover a loss if the verbage matches to damage you reported at some point with no proof of repair (most times a full blown contractors repair line item sheet.)
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u/pauses-then-says May 01 '26
But all of this was with the same company.. and that company explained this concept to me and said it wouldn’t be worth submitting a claim. So sad
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u/PuzzleheadedFun3013 May 19 '26
Yes that is the frustrating part. Losses follow the property and insured. They won't cancel your policy, but they most likely won't write you a different one. The other unfortunate side of that is it also stays with the home as well. If you decide to sell it, the next person can have trouble getting coverage and if you decide to lease it out, you can have trouble finding a company that will write the policy as well. Not all the time but it is a possibility.
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u/12b4me79 Apr 28 '26
You don't want to use state farm anyway. Look at their claims handling reviews. They're terrible. Coming from someone in restoration.
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u/Barbarossa7070 Apr 28 '26
My State Farm agent is gonna be bummed when I switch all my coverage soon. They denied a roof claim from the same storm that two different insurers approved for my neighbors.
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u/Southern_Magician892 Apr 29 '26
It’s my understanding that if you call your insurance company about something, it goes on your record of a loss claim.
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u/Flo_Evans Apr 29 '26
I have heard even if you call and ask about coverage they consider that a claim and mark it against you. I had been with State Farm for basically my adult life, insuring cars, home, ect. I had 2 motorcycles stolen out of my garage and they dropped me after that. I think they paid out $6k 😂
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u/Savings-Attitude-295 Apr 29 '26
Don’t waste your time on companies like that, there are plenty others who will love to take your business, move on.
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u/Nightflier9 Apr 29 '26
Same happened to me with state farm, the adjuster made an insanely low estimate, i appealed, which of course they denied. So they never paid out anything since deductible was higher. However it counted as two loss claims and they dropped me and i had all sorts of problems getting insured with other carriers, despite being a loyal customer for 20 years with zero claims. State farm is not there for you when you need them.
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u/Traditional_Job_4280 Apr 29 '26
It's your AGENT that is the problem. They are nothing but salesmen who gets large commissions from policy holders that DON'T make claims. Shop around for a good AGENT, and you will be fine. I learned when I was young that filing claims unless it was a biggie was a big mistake.
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u/redneckerson1951 Apr 29 '26
State Farm is effing up right and left. I have been with them for nearly 60 years and if this the the tripe one cane expect, then I will be looking around.
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u/1130coco Apr 29 '26
I have had one claim in 31 years on this home. No there's in any home since 1976. My homeowners insurance was not refused for renewal after the claim. That was 20+ years ago.
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u/SparklingSandyBeach Apr 29 '26
Are you sure that it's your prior claim blocking insurance and not the seller? We ran into this before -- the seller had a couple claims and so the property was the problem and not us.
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u/pauses-then-says Apr 30 '26
Yea, they said it was because I contacted corporate to ask about using my coverage and they record any inquiry as a claim request or something crazy.
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u/Choice_Ostrich_8409 Apr 30 '26
Damn that sucks. Sometimes they'll just hit you with some insane rate to make you walk, but they didn't even do that. Sorry man, but they really don't want to insure you.
When you talk to them to see if underwriting will make an exception, might just want to confirm & say So no payments were issued? No exposures are open? And the claim is closed? It probably won't help at all, but I was under the impression that those things could potentially impact a premium.
You can try Travelers. Best of luck.
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u/Internal-Hedgehog-47 May 01 '26
Just like you have a credit report, you have a CLUE report for insurance claims.
Lot of the information in this thread is misinformation, it’s not just an “underwriting” thing. Having a claim on your record can prevent you from getting a new policy with ANY major insurer, and now you need to buy off secondary markets (aka $$$).
Global warming deniers can’t compete against insurance actuaries who are actively trying to get out of the business of insuring homes in specific areas/states.
I would never file a homeowners claim unless my home was almost completely destroyed. I would not even ASK about filing a claim. They are just looking for reasons to cancel and get rid of you in many places.
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u/Historical_Ad1037 May 02 '26
Yes unfortunately it happens. I just got my renters insurance reinstated after three years. My situation was pretty much like yours. I was told even though I canceled the claim, to them a claim was still filed.
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u/Watermelonbuttt May 02 '26
Any loss whether it’s paid out or not will count against you
Even calling to ask a question about a claim will negative affect you. Basically if a claim number in generate it will count against you
Only use HO for major claims
Also insurance company loyalty helps as well
Claim history, how long you been insured, etc etc
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u/Longjumping-Elk-6118 May 04 '26
Even if it’s less than deductible, they still considering it as a paid claim, you just didn’t hit your deductible
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u/Real_Birthday_2192 May 15 '26
Something isn’t right. I work for SF and have customers everday who are eligible who have multiple claims. Also per underwriting guidelines if you have a current homeowners policy active within 30 days and transfer/replace policy you are automatically eligible.
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u/pauses-then-says May 15 '26
Maybe it’s the area?
One of the local agents said that they had someone who had a policy for 25 years and used it once and got dropped. They said they’re nothing they can do and it’s corporate company that makes the decisions.
I agree it’s crazy that I can’t stay a customer. But I have a quote from AAA that’s pretty much the same coverages and a lower price so I guess it’s ok.
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u/jojobabyyy13 May 26 '26
If you’re still with sf I’m curious why they aren’t just writing your new policy as a replacement policy to your existing policy, which negates the need to pull a loss history report. (at least in the states where I’m licensed)
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u/SunshineStaterJax Apr 28 '26
That's absolutely ridiculous but yeah, it's becoming more common. State Farm basically treats any claim inquiry as a red flag now, even if you paid out of pocket. It's like getting penalized for asking a question.
Definitely go with an independent agent - they'll find you someone who actually wants your business. I've seen this exact situation play out with other carriers too, so don't take it personally. State Farm's just being picky right now.
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u/Tree_killer_76 Apr 28 '26 edited Apr 28 '26
Yep. I had concrete roof damage from a microburst just a few months after buying a new build house. Filed a claim. Carrier sent an adjuster who determined cost to repair was less than deductible. Then within just a couple weeks, before I had the opportunity to repair, another microburst blew some tiles off the same section of upper roof and they fell onto the lower roof, causing new damage. Having never filed a homeowners insurance claim before, I filed a second time assuming that both incidents would now be covered because the total cost to repair the damage would now exceed my deductible.
I was wrong. The carrier (of course) considered them two separate incidents and two separate claims, neither of which met the deductible.
And so I had two claims, both with zero payout, and my smart self decided I was fed up with that carrier so I shopped my policy. I couldn’t even get quotes because new carriers considered me uninsurable.
Edit: since the homebuilder still had model homes, a sales office and was actively building in the community, I was able to harangue the builder into giving me enough new roof tiles for me to just hire a handyman to replace them. Ultimately I think my out of pocket was like $300 for a handyman to come out and install the tiles. Took him like 30 minutes.
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u/DeepPurpleDaylight Apr 29 '26
Why are you "fed up" with a carrier who determined that 2 incidents weeks apart are treated a two separate claims, both of which were so minor they didn't even meet your deductible? Of course it's 2 separate claims. The damages occurred 2 separate times, not hours or even days apart, but weeks apart. Every single insurance company will count this as 2 claims because it IS two claims and every single insurance company will deny any claim with damages that are below your deductible, as they should.
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u/Tree_killer_76 Apr 29 '26
I was fed up because this happened 22 years ago and I was a noob who didn’t understand the process. We are the sum of our experiences and I certainly learned from that one.
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u/fabric-yarn Apr 28 '26
Please call an independent insurance agent. They work for you, not any one insurance company like State Farm and others. Damage less than your deductible, that was withdrawn, on a different house than you are purchasing, should not have a large impact on your new policy.
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u/psilocyber420 Apr 28 '26
Submitting claims for less than your deductible should be a crime so consider this getting off lightly
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u/Prufrock-Sisyphus22 Apr 28 '26
This is a blessing in disguise for you. Take it as a sign and move on.
State farm is facing multiple lawsuits including from a former judge and the company is apparently under investigation for fraud related to the home and car insurance divisions.
Reason being for denying insurance claims or paying out so small that homeowners had to finance repairs themselves.
Do you really want to be insured by a company that may not pay a legitimate claim ??
And do you really want to support a company engaged in shenanigans ?
Research and find a new home insurance company that is best for customer service, customer satisfacation and claims handling and honorable. Easy internet search will find you top rated insurance companies.
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u/Big_Appointment_3390 Apr 28 '26
Just want to add that State Farm has a reputation amongst contractors for being difficult/impossible to work with as well. There’s a lot to that and it can be taken with as many grains of salt as you’d want, of course, but “blessing in disguise” is accurate.
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u/Infinite_Pop_2052 Apr 28 '26
The only time I ever called my home insurance was after a roof leak. The rep on the phone, who was very helpful by the way, told me "trust me, you don't want to submit a claim for the this. If we end this conversation now I won't even put it on record that you inquired about this. It's in your best interest".
Thought it was really odd at the time, but I listened to her. She was probably right