alexgaddis Posted August 15, 2007 Share Posted August 15, 2007 I heard somewhere the other day that you are only allowed a certain number of homeowners insurance claims in your life-time...is there any truth to this? I have a friend buying a house with a garage that is about to fall over...is it going to hurt her in any way to put a claim in in the first year of owning a home to repair her garage? Quote Link to comment Share on other sites More sharing options...
SeductiveNun Posted August 15, 2007 Share Posted August 15, 2007 Not quite sure if you are limited in your lifetime as to the number of claims you can file, but a couple years after buying my house we had a hugh hailstorm which beat the snot out of my roof. I had an insurance claim adjuster come out, and after looking at the damage approved a claim for a new roof and siding. Just recently, as you well know, we had some storms come through the Twin Cities, and the wind peeled some of the facia off my house and blew the soffet up into the roof itself. I talked to some friends about filing a claim again, and they said it's possible the insurance company starts to view you as a risk and may end up dropping you outright. My brother in laws mom experienced that same situation a few years ago with her house. Fortunately for me, only about a 15-20 foot section of facia and soffet need to be repaired, so I'll probably pay it out of my own pocket. Still waiting on the estimate to see what it is, but ideally it's not much more than my deductible would be, and I don't have the stigma of a second claim in 4 years time. What pisses me off about this though is the thought that the insurance company would possibly drop me after filing claims for storm damage. Like I can control the weather or something. Quote Link to comment Share on other sites More sharing options...
Hat Trick Posted August 15, 2007 Share Posted August 15, 2007 I talked to some friends about filing a claim again, and they said it's possible the insurance company starts to view you as a risk and may end up dropping you outright. I dont know of any lifetime rule, but most definately this is what will happen. Quote Link to comment Share on other sites More sharing options...
Coffeeman Posted August 15, 2007 Share Posted August 15, 2007 (edited) I heard somewhere the other day that you are only allowed a certain number of homeowners insurance claims in your life-time...is there any truth to this? I have a friend buying a house with a garage that is about to fall over...is it going to hurt her in any way to put a claim in in the first year of owning a home to repair her garage? First, her buying agent should go to bat for her, and either get the seller to pay to fix it, or deduct the estimated cost from the price. Why is it her problem already? But if she must go the insurance route, a few thoughts: No, there is no truth to the lifetime claim number, but there is to the 3 or 5 year timeframe, depending on the insurance carrier she has. That is, the claims are tracked like your driving record, and they can drive up your costs anywhere from 20%-75% or more for the next few years, with some exceptions for catastrophes, mandatory evacuations, etc. So have her talk to her agent 'off the record' to discuss her policy language, premiums and deductibles. They can decide whether its cheaper in the long run to pay it herself or file the claim. Now there is a real chance that someone with multiple claims within a 3 or 5 year period would not be renewed by her carrier and then have a hard time finding coverage elsewhere outside the state's residual market (i.e. the FAIR plan here in CA.) good luck to her.... Edited August 15, 2007 by Coffeeman Quote Link to comment Share on other sites More sharing options...
rocknrobn26 Posted August 15, 2007 Share Posted August 15, 2007 I heard somewhere the other day that you are only allowed a certain number of homeowners insurance claims in your life-time...is there any truth to this? I have a friend buying a house with a garage that is about to fall over...is it going to hurt her in any way to put a claim in in the first year of owning a home to repair her garage? Collapse, unless weather caused, is usually not covered by insurance. And if caused by weather, but was in very poor shape to begin with, might be rejected. An agent will probably do a cursory inspection prior to issuing a policy and flag the garage anyway. Insect or rodent damage are also usually not covered. Quote Link to comment Share on other sites More sharing options...
Coffeeman Posted August 15, 2007 Share Posted August 15, 2007 Collapse, unless weather caused, is usually not covered by insurance. And if caused by weather, but was in very poor shape to begin with, might be rejected. An agent will probably do a cursory inspection prior to issuing a policy and flag the garage anyway. Insect or rodent damage are also usually not covered. Good points - RR is right on here, and I forgot to address this part.... Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted August 15, 2007 Author Share Posted August 15, 2007 Collapse, unless weather caused, is usually not covered by insurance. And if caused by weather, but was in very poor shape to begin with, might be rejected. An agent will probably do a cursory inspection prior to issuing a policy and flag the garage anyway. Insect or rodent damage are also usually not covered. Nobody from the insurance company came out to look at the property before issuing the binder...the appraisal doesn't address the garage condition at all either Quote Link to comment Share on other sites More sharing options...
Coffeeman Posted August 15, 2007 Share Posted August 15, 2007 Nobody from the insurance company came out to look at the property before issuing the binder...the appraisal doesn't address the garage condition at all either so...she's already closed escrow then? If so, sure hope this issue reduced the price, or her agent sucks.... Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted August 15, 2007 Author Share Posted August 15, 2007 so...she's already closed escrow then? If so, sure hope this issue reduced the price, or her agent sucks.... You Californians have wierd closings... She is closing on the home on Friday Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted August 15, 2007 Share Posted August 15, 2007 Sounds like she and/or her agent made a bad decision then. How much earnest money would she lose if she walked away now? It's a buyers market for crying out loud... how could they have NOT gotten the owners to pay for this?!?!? Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted August 15, 2007 Author Share Posted August 15, 2007 Sounds like she and/or her agent made a bad decision then. How much earnest money would she lose if she walked away now? It's a buyers market for crying out loud... how could they have NOT gotten the owners to pay for this?!?!? Good Question...maybe the price reflected the garage needing to be repaired...I have no idea... Quote Link to comment Share on other sites More sharing options...
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