You’ve determined it is time to move to a new home. You’ve had a run of bad luck and have a few claims filed with your homeowner’s insurance company in the past few years. Now, you are wondering how that may impact you going forward.
Do the claims follow me or the house?
Let’s look at how the claims impact you. When you go to get insurance on a new home, the new insurance carrier will pull what they call “reports.” Part of these reports show your claims history. Typically, each carrier considers your claims history over different periods of time and has different eligibility requirements that they will accept. In many cases, a recent history of multiple claims could cause you to either incur higher insurance premiums for your new home or even make you ineligible for their products. Fortunately, an independent agent often has multiple carriers they can work with so they are much more likely to find you some good coverages at the best price they can.
Will these claims haunt me forever?
No. Remember, each company has different guidelines on how far back they look at claims and what they are willing to accept. Over time, these claims will “drop off” your reports, allowing you to potentially purchase better insurance products at better prices. Regardless if you are selling your home or not, your agent should be reviewing this with you and the carriers each year to ensure you are not overpaying or in the wrong product for your needs.
How does this typically impact those buying my current home?
Great question. One would think that a home with numerous claims would have a more difficult time getting insurance. This may be true, but often this is more because the home may require some updating or repairs than because of the number of historic claims.
Will the new buyers of my home know about the claims?
When their insurance agent pulls the buyer’s “reports” with that new address, the claims often come across on the reports. They aren’t typically penalized because of these claims as they would be attributed to you, the seller. But it is possible they could become aware of a claims history. You should always make sure you work with a licensed Real Estate agent to ensure you are handling all disclosures about your property correctly.
Still have questions?
Always talk to your homeowner’s insurance agent anytime you are considering making a change like moving, renovating or buying additional property. All of these things can impact your insurance in ways you may not have considered. Your agent can help address any questions, point out any risks and ensure that you have the right protection at the right time. We’d be happy to help with that too! We can be reached at 603-273-0953 or www. keslarinsurance.com.