r/Insurance • u/TheDaug • May 13 '26
Home Insurance Am I Screwed?
I just received notice that State Farm will no longer do homeowners business with us due two two claims in the last 6 years.
The first claim was for a slab leak - we were new homeowners facing a total replumb of the property and didn't know the nuance of the water damage coverage in policies. I believe (and am looking for documentation) we ended up withdrawing this claim after speaking with the claims agent.
The second claim was at the behest of a roofer, saying the damage to the roof was caused by hail - he was certain of it. He suggested we make the claim and he would handle it, so we did. If I had any idea the aim would make us too high risk for state farm, I never would have done it - we were due for a recoat anyway. This claim was also rejected.
So, State Farm as paid $0.00 for two claims and now our policy will be terminated. My understanding is that once this happens, it's way harder to get coverage. How much harder are we talking here? Am I going to pay through the nose now?
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u/waiting_for_letdown May 13 '26
You find a local insurance broker who can shop multiple companies for you, and has expertise to find the right coverage for you. But yes it is likely going to be difficult an expensive as you have shown you will make claims and it doesn't matter if you "withdrew' the claim.
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May 13 '26
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u/Insurance-ModTeam May 13 '26
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u/MysteriousLobster604 May 13 '26
Just some advice but NEVER, NEVER file a roof claim based off of what 1 roofer tells you. I also have State Farm and get my roof checked every year and every year I was told my roof was in excellent condition. We had a terrible hailstorm last summer so I called the roofer to check my roof and he now said that my roof was trashed., Just to be safe I called 2 more roofers and each one said the same thing. Based on all 3 agreeing there was severe damage and knowing that it was a very bad hailstorm, I filed the claim and State Farm paid for a new roof.
Secondly when you make a claim and later on remove that claim or decide not to follow through with it, the insurance companies still see it as a claim filed and it goes against you. NEVER make a claim unless you intend to go through with it and have good evidence or advice that your claim will be accepted.
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u/Temporary_Let_7632 May 13 '26
A friend just went through this with State Farm also. We found her an independent agent and things worked out with no troubles and a slight decrease in premiums. Good luck.
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u/blbd May 13 '26
You're going to need an independent agent. And you're going to pay a wild premium. Use your coverage much more carefully. It's there for major economic meltdowns not colds and coughs.Â
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u/TheDaug May 13 '26
I mean, I get it, but we also didn't "use" it. I still get what you're saying, but it just feels cray to have cost $0 but be considered too high risk. Again, I "get" it, but still.
Oh well, at least I get to be haunted by my decisions.
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May 13 '26
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u/TheDaug May 13 '26
Thank you.
These are not mistakes I'll make again, but man, fuck me for trying to learn.
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u/Primetime0509 May 13 '26
People around here also aren't exactly correct, you can get these claims excused with the right agent.
There have been plenty of times I've been able to talk to underwriting about removing claims because they were zero pay claims.
Your current situation isn't nearly as dire as some are making it seem here.
Just be open and honest with your new agent and tell them your situation. The right one should be able to make something work for you.
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u/Resse811 May 13 '26
The minute you file a claim - you used your insurance. Whether they paid out or not doesnât matter.
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May 13 '26
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u/Primetime0509 May 13 '26 edited May 13 '26
Insurance is the most regulated industry there is what are you talking about lol.
I will say you're half right though. For one, OP could probably find an agent whose good at getting the claims off their record since they were zero pay. It won't work with every carrier but some will excuse them. I've done it 100s of times.
A carrier can choose to non-renew any time. Each renewal is a new contract and they aren't required by law to offer you said contract if they feel that you aren't a good risk to insure. OP has tried to make two claims already. I'm assuming State Farm is predicting this insured plans on trying to use their insurance more in the future and so they don't see them as a good risk to insure.
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May 13 '26
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u/Primetime0509 May 13 '26
Again it's literally the most regulated industry in the country.
They didn't get dropped, they got non-renewed. There is a difference. Every business in the country can choose not to do business with someone. That's what they're doing here.
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May 13 '26
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u/Primetime0509 May 13 '26
Again not dropped. Non-renewed. Dropped would mean they terminated the policy during the term. Non-renewed is not offering a renewal term.
You're never guaranteed to be automatically renewed. You can be non-renewed for all sorts of reasons.
Does a bar need more regulation if they choose to not continue serving me because they feel like it's not a good idea?
Out of all the complaints you can have about insurance this one is pretty dumb lol
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u/Resse811 May 13 '26
No. Dropped and non renewed are vastly different. The fact that you keep saying they are the same, makes it clear that you have very little knowledge of the insurance industry.
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u/Primetime0509 May 13 '26
And I saw what you just tried to send and deleted. I'm not defending anyone I'm telling you how it works. If that means I'm "slurping at their boots" and I'm a "clown" then so be it.
Get help.
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u/Any_Lengthiness_3555 May 14 '26
Thats even worse. It implies you file claims for bullchit. I'd rather see a customer with 2 two 15k claims, than two that paid zero. That tells you this person will file a claim if the wind blows. Insurers do not want "frequent users of insurance".
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u/Meteorsaresexy May 13 '26
You didnât cost them $0 because you arenât high risk. You cost them $0 because they told you no.
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u/hbk314 May 13 '26
This is why people hate insurance companies or call insurance a scam. That State Farm didn't even have to pay out either claim is the cherry on top.
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u/CallMeMrRound May 13 '26
When a homeowner has damage to their home that is not covered by insurance it's safe to assume that they are a higher risk for something to actually go wrong that is covered.
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u/TheDaug May 13 '26
Why? If I have a slab leak, why does that make me more at risk for having a fire?
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u/ChapterSuper May 13 '26
You showed them that youâre willing to file a claim over anything. You also followed the advice of a shady roofer. You were irresponsible and painted yourself as a huge risk.
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u/biggerty123 May 13 '26
Oh come one, "You were irresponsible". No they aren't.
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u/ChapterSuper May 13 '26
Filing two claims for damage that isnât covered by your policy is irresponsible. Reading your policy and consulting the wealth of knowledge online before filing a claim is what responsible people do.
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u/biggerty123 May 13 '26
Insurance companies use marketing and branding to sell peace of mind, while the business model is built on minimizing payouts and scrutinizing behavior. I won't fault anyone for believing the protection hype an insurance company sells them.
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u/CallMeMrRound May 13 '26
Lack of maintenance and situational awareness.
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u/TheDaug May 13 '26
Lack of maintenance is an insane claim. They amount of money I've spent making sure this place doesn't go up in flames is far more than I care to admit.
Whatever. Ive learned my lesson - homeowners insurance is just something you pay for, not something you use. Got it.
Sure glad this sub is really friendly.
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u/Brew_Crew92 May 14 '26
After a nasty hail storm in 2021 I needed a new roof. My roof was 20+ years old and had many areas of extreme wear, I paid out of pocket and didn't contact insurance. A couple months ago a massive hail storm rained hellfire upon me and totaled my car and annihilated my roof. I filed a claim and had the money for my car and roof within a week without any issue, and knew my policy carried replacement cost. It's about knowing coverage, knowing your policy, and knowing when the damage meets the criteria.
Could I have tried for a new roof in 2021? Sure.
Was it warranted? Probably notI didn't believe the storm chasers.
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u/biggerty123 May 13 '26
This sub is full of disgruntled agents and claims people that justify shitty insurance company behavior. Ignore them.
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u/CallMeMrRound May 13 '26
Nope. I'm a homeowner. I've filed and been paid for insurance claims, I've also had other issues that arise that I didn't contact insurance about. I did that because I read my policy that I paid for so that I knew what was covered and what was not.
This sub is full of homeowners who do not educate themselves on what a pain in the ass it is to own and maintain property, who then come here to argue and complain. But at the end of the day no matter how many upvotes wrong information that makes you feel good gets gets, reality doesn't care.
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u/biggerty123 May 13 '26
A person comes to the sub on a niche topic, none-of-which is in any foundational education curriculum in the US, asking a fairly common question. They didn't 'argue or complain'. So instead of sharing your knowledge because you 'have filed and paid insurance claims, had other issues that arose, and have read your insurance policy,' you come to post "lack of maintenance and situational awareness." Super helpful. Thanks for contributing!
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u/Thin-Egg-1605 May 13 '26
Youâre a risk at filing more claims. You already filed two and we donât know how much time between the two or total Time you have been in the house. State Farm is pretty lenient. 50/50 of the time I guess. 2 claims back to back is excessive for sure.
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u/TheDaug May 13 '26
One attempt in 2020 and one in 2025. Been in the house since 2018.
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u/Useful-Caterpillar10 May 13 '26
I think a lot of people on this sub are very logical, knowledgeable, experienced, and probably very science or numbers based. And I get that math doesnât lie. But can we at least agree that a homeowner withdrawing two insurance claims and still getting penalized with higher rates feels completely asinine?
Like the whole point of withdrawing a claim is basically saying ânever mind, donât pay anything.â Yet it still follows you around like you actually cost the company money.
Like if you had a daughter or son and they are new homeowners, do you think this would be something that they would reasonably know? This is pretty catastrophic
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u/Thin-Egg-1605 May 13 '26
How about us with no claims with a 2500 deductible paying 2,000 a year with no roof coverage because we have 3 tab? They are dropping people like us too. It is what it is. I havenât been dropped, but this is crazy.
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u/ChapterSuper May 13 '26
They withdrew the claims because the policy didnât cover them and the insurance company wasnât going to pay. OP said both claims were rejected. If the insurance company would have agreed to pay out for the repairs like OP expected, he would have 100% followed through with the claims.
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u/SuccessfulHospital54 May 13 '26
But they still didnât pay any money. Dropping them after taking payments for 6 years and not paying out.
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u/Any_Lengthiness_3555 May 14 '26
Investigating claims is free? Zero claims are the worst. Have to discourage people from filing every time the wind blows.
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u/Organic-Baker-4156 May 13 '26
The real problem here is letting a roofer tell them they had a claim. That was obvious to the insurance company. I've gotten the pitch several times... you have roof damage from one of the hurricanes. One of them. Of course, what I really have are shingles a few years from needing replacement. Which is likely the OP's situation.
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u/TheDaug May 13 '26
I don't disagree with you on the roofer, to he honest. I'm going to lose my cool with them, to be sure. We have a flat roof and there was clearly damage. I, not being at all versed in things roof related, tried to rely on a professional's assessment of the damage to my roof, and follow their advice. The part that really pissee me off is, we had already agreed to do work with them - they had simply come back to remeasure our skylight and then told us. I should have caught it, but trying to scam our insurance wasn't on my radar after we had already told them we were going to pay them for a recoat.
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May 13 '26
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May 13 '26
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u/Organic-Baker-4156 May 13 '26
The house doesn't always win but if it doesn't win overall the company goes out of business.
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u/Regular-Standard297 May 14 '26
I had two mass loss claims. One paid out one denied. Most companies wouldn't accept me after i was dropped. High risk insurance is astronomical. All state was the only one that would still insure me with 2 losses. Try all state
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u/InterestingAd9973 May 13 '26
Iâm an insurance agent and I just signed up an old State Farm client up for the agency I work for. State Farm non renewed said clients homeowners policy due to one claim. They tend to do that from what Iâve heard.
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u/The_Insurance_Man May 13 '26
Difficulty is going to depend on where you are located and the underwriting guidelines for each company. Some might be more difficult than others. Best thing to do is check with as many different options as possible.
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u/tooOldOriolesfan May 13 '26
Even if you withdraw a claim it is often (always?) held against you. I've heard of people calling in and asking if something was covered, it wasn't, and it was still listed as a claim.
Unfortunately insurance is a mess. In some cases due to people severely abusing it.
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u/longspyleaps May 14 '26
My wife works in underwriting at SF, though she works commercial. She says there is an appeals process and to contact your agency. It's not a guarantee but you sound like a good candidate for one.
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u/BrosterGuy May 14 '26
I feel your pain OP. We had 3 claims paid + a $0 âwithdrawnâ claim in a span of 24 months. The last claim we called in to say âjinxâ when we realized we had already carved a special place in insurance hell for us. We probably went 25+ years funding the insurance industry (zero claims), and then had a spike in claims because of Helene, more storms, and something on the inside of the house. Turns out that we are now a lower life form than the ameba that sticks on the sole of your shoe after you step on dog shit for the insurance industry. We just bought a house and we had denial after denial; so much that we were worried for a moment we wouldnât get coverage. As others have said, call multiple brokers (I had 3 working in tandem), and finally got a provider. If we got insurance with 3+1 claims, there is light at the end of the tunnel for you OP. Claims will drop after 5 years, and your Nexus score will get back to being squeaky clean. You can then shop again and hopefully lower premiums. For us, as I am sure for many, not knowing that we shouldnât use insurance for what itâs supposed to was our undoing. Itâs terrible and I have no respect for the insurance industry. We learned our lesson the hard way, and our penalty is having to continue having insurance that we will only use if the house literally burns down.
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u/Jackflash57 May 16 '26
There are no âwithdrawnâ claims for homeowners, you can be mad but weâre all beholden to the almighty algorithm, and the algorithm doesnât care if you âwithdrawnâ a claim just because it wasnât going to pay out anything, you filed a claim, thatâs it, I have to have that unfortunate conversation multiple times a day when Iâm trying to talk our insureds out of a claim on your 17 year old roof.
Homeowners policies are classified in the âfireâ policy category, there is no hail policy category, the policies werenât designed to get you a new roof whenever 1 roofing scam company driving by told you to file a claim. The other most common would be sorry your âbuddyâ who is a contractor told you to file a claim, heâs an asshole
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u/RipperCrew May 13 '26
This happened to me after a claim. I called my local state farm agent. They were able to cover me with their own policy. I guess there is a difference between local agents and the national company.
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u/AverageAlleyKat271 May 13 '26
Find an insurance broker. He will shop for best policy and best premium.
It is claim frequency regardless if a claim is paid out. It infuriates me when someone like a roofer suggest filing a claim. No skin off their back and you get the fall out.
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u/franklin615 May 14 '26
You donât need a call center, you donât need a local broker, you need a specialist, wherever theyâre at. Someone that will pick up a phone and work with an underwriter so that itâs done right.
The claims are claims unfortunately, if an adjuster or some employee assigned a claim number and a denial, they incurred cost, so it counts unfortunately (in most states). If I thought that you had a good chance of walking that back and having it removed, itâs probably quite low, but you never get it if you donât ask.
Itâs not fair, but right now, and Iâm not a giant defender of insurance companies, but if there was a lot of money to be made in homeowners insurance with 2 prior claims, I assure you, tons of companies would clamor for that.
Thereâs not though, so you need someone that specializes in that or youâre going to explain yourself over and over again and get no where, or a crummy deal. An specialist can give a narrative to an underwriter that doesnât fit in the drop down box of quoting platforms, but that context does matter. To a human underwriter.
Good luck!
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u/stjames70 May 14 '26
I have a house that did go some water damage as a result of hail and flooding. Got cancelled. The house was paid in full so I did not have an issue with a mortgage company demanding that I get homeowner's insurance. I think I have to wait seven years before all the claims in the system disappear before I can apply again. It sucks but it is happenning all over the country. You were dropped not because of the claims since they were never paid. You were dropped because your neighborhood was considered too high risk, and they no longer wanted to insure that neighborhood. They are in the business of making money. They are not into it for you.
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u/whereistheidiotemoji May 14 '26
I had three claims with State Farm in short period of time.
Lightning that came in one end of my house and blew the light switch off the wall at the other end in 100 plastic shards. Destroyed everything electronic in between. Thermostats, televisions, computers, appliances - everything.
A TORNADO came through the neighborhood - literally down our street - they could see something had happened to the roof because the garage door was sagging. Other people had their houses shift on the foundations - they were tear downs.
Went away for the weekend but turned around after two hours because of traffic. Walked into the entire first floor being flooded PLUS all of the appliances in the crawl space. Hose broken under the kitchen sink.
Got a letter we were cancelled for being CARELESS. After we had been without a claim for 15 years, in that house plus two rental houses.
I called our agent and said okay, but we are pulling ALL of the houses AND the cars AND the life insurance AND the umbrella policy.
They reversed it.
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u/dotofoz01 May 14 '26
You might want to check your state's Fair Plan insurance. basically they are for "uninsurable". got kicked off SF and black listed bc i had 2 back up claims in a year due to crappy (pardon the pun) hoa management company.
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u/Organic_Beautiful360 May 13 '26
Why do any of you defend this complete fraud we call insurance. The companies drop you after not being able to continue to make 100 percent profit on your policy each and every year. I do get it we need that insurance for complete loss of our home. But the companies tell you that you have this coverage and then drop you if you use it. St the least it pure greed.
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u/Any_Lengthiness_3555 May 14 '26
Insurers lost money on home in many of the last 10yrs. Loss ratios were running 100+%.
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u/Any_Lengthiness_3555 May 14 '26
Look at it this way. My house is insured for 880k, with personal property of another 500k+, additional living expenses 100k+. Total losses happen either via fire, weather etc. My house would cost the insurance company 1.5 mill when all is said and done (on a 2k/yr premium). One event we would pay out more than I would pay in a lifetime. That's not even accounting for any smaller claims that could happen in my lifetime.
With insurance you are in a risk pool with thousands of others. Everyone can't "win". In fact for the system to work, 90% of us NEED to pay more than we'll ever claim.1
May 13 '26
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u/CleanCalligrapher223 May 14 '26
I'm a retired property-casualty actuary. While I find it weird that claims closed without payment should increase your premium, insurance rates are strictly regulated by state agencies and believe me, they spend a lot of time picking at any assumptions that increase the premiums and pay zero attention to assumptions that may overstate the need for premiums. There must be some statistical justification for what they perceive as increased risk.
I ALMOST had a claim last year. I'd installed a smart water valve that shuts off water to the house if it detects abnormal water flow. This was after an incident the year before when my outdoor sprinkler system developed a leak when I was away for 4 days. Since it was outside, the most painful aspect was the $1,000 water bill. I didn't file claim. Last year it shut off the water 24 hours before I was to return from a trip. Sure enough, it was a small leak in an upstairs bathroom pipe and the 12 gallons of water that had leaked out before it shut off after 20 minutes had soaked part of the ceiling and the carpet of the room below. I can't imagine what I would have had if it had gone on for 24 hours.
Repair costs added up to just below my deductible (I checked my policy) so I didn't bother filing a claim. I saved State Farm a bundle. I did call and ask if they offered a discount if you had one of those devices.
Nope.
And I don't know if the OP did this but do not EVER hire a roofer who knocks on your door uninvited or puts up signs after a major rainstorm. They're vultures. And do not sign anything that lets them deal directly with the insurance company.
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u/Bakkie May 13 '26
Your mortgage company requires it.
There is property damage coverage and there is liability coverage.Just wait until your neighbor slips on your crumbly steps. Insurance pays your lawyer and your injured neighbor
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u/ironEye7261 May 13 '26
You have a Nexus rating that acts very much like a credit score. I've been dinged for a denial of claim on a roof issue. After replacing roof out of pocket I had to bring a law suit, insurance settled for roughly what the roof replacement was originally quoted. They dinged me a second time for suing. Since this debacle, insurance companies have declined coverage, one accepted an annual premium, send binder and welcome information, then decided my home was no longer eligible. This company even had the audacity to offer a partial refund in 30-60 days. Bull snot, a demand letter from the attorney produced immediate refund check. They all play hard ball. They all suck. 7-10 years worth of punishment for trying to use what you pay for ahead of any necessity. Over 25 years of loyalty and this is the repayment.
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u/TheDaug May 14 '26
I'll be interested to see my Nexus information. I requested it and, as someone who has had extensive Nexus access for work in the past, am interested to see what comes up.
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u/PuzzleheadedPass2733 May 13 '26
Crazy to pay for insurance and then get faulted for using the insurance you pay for
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u/TheDaug May 13 '26
Especially when you don't get any payouts. 44k in repairs paid out of pocket, but I'm too risky for them.
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u/ChapterSuper May 13 '26
$44K you expected the insurance company would pay. Most people donât file one homeowners insurance claim in ten years. You filed two in a short period of time. The vast majority of my customers have no claims at all.
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u/TheDaug May 13 '26
I get that the second one was a mistake now, for sure. The first one was newish homeowner panic. Lessons learned.
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u/ChutneyWhatney May 13 '26
Tough lesson. You overused your insurance for unworthy claims. Shop around and see what you can get, but you may have to pay more.
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May 13 '26
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u/Bakkie May 13 '26
The carrier pays the fee, not the person buying the policy aka usually "the insured".
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May 13 '26
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u/snearthworm May 13 '26
You should also give your DOI a call to place an order for BOGO medium pepperoni pizza coupon code DUMBIDEA
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u/DeepPurpleDaylight May 13 '26
Also Iâd consider giving your states insurance department a call let them know your being non-renewed for 0.00 claims.
Which will go nowhere because SF is doing nothing wrong and is well within their rights to not offer a renewal.
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u/hbk314 May 13 '26
They're also earning the hate people have for insurance companies.
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u/DeepPurpleDaylight May 13 '26
You have to understand, each policy term is an individual contract that neither party is required to enter into. You can't force a company to do business with you just as you aren't forced to do business with any particular company. In fact, insurance companies are far far more limited than the consumer. The insurance company can only cancel your policy for very limited and very specific reasons, while you, as the consumer can cancel your policy anytime you want for any reason, or no reason at all.
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u/hbk314 May 13 '26
I do understand that. That doesn't change what I said.
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u/DeepPurpleDaylight May 13 '26
Ok. I get it. Hate a company because they're following the law. đ
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u/hbk314 May 13 '26
Hate a company for scummy behavior. They didn't even have to pay out.
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u/snearthworm May 13 '26
Insurance is based on risk, if someone tries and fails to file a claim twice, what are the chances they're going to do it a 3rd time? Pretty high. Doesn't matter if they paid out, because they're incidents where there was damage significant enough to warrant a claim, covered or not. People with too many claims get dropped so the rest of the company's insureds don't have to continue footing the bill.
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u/hbk314 May 13 '26
Except they didn't have to foot any bills whatsoever. This scenario should be illegal.
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u/snearthworm May 13 '26
You don't understand how it works and that's okay. I don't understand rocket science either, even if insurance is not even comparable to rocket science! But staying ignorant is also cool.
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u/Flimsy-Log-7605 May 20 '26
I think roofers go around specifically after hail storms to try to get your business. They convince you to have an insurance adjuster come and judge if your roof was damaged by the latest storm. It is a ploy. Not to say there is never roof damage from hail, but they exploit the possibility.
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u/KLB724 May 13 '26
This is a tough way to learn how not to use your homeowner's policy, but the good news is that the impact will diminish with time. Contact an independent agent and be prepared to pay much more than you were for the next few years. Don't file a homeowner's claim unless it's a catastrophic loss and definitely don't listen to any roofers or contractors who tell you to file a claim. Tell your friends who may not be aware.