Published March 17, 2023
Claim Frequency Made Easy With Crystal-Lee
Everything homeowners need to know about insurance claim frequency.
Do you know what claim frequency is? If you have homeowners insurance, you probably should. To help unpack this topic, we’re speaking with an expert insurance agent, Crystal-Lee Thompson, about everything you need to know about claim frequency.
In New Hampshire and many other states, you can only make so many claims before you are flagged. If your home is over 90 years old, you can only have one insurance claim within five years. Also, depending on the type of claim you make, your insurer may be required to drop your policy if a 2nd claim is filed depending on the category of claim it is. A 2nd claim that falls under catastrophic or a “category A” such as fire, water damage, etc. you’ll likely be looking for new coverage once the policy renews. For example, if you have a large, catastrophic claim, like a fire or major water damage, your insurer will likely drop coverage. On the other hand, if your home is under 90 years old, you can make two claims within five years before getting flagged.
“This will help you avoid getting flagged so you can keep your good insurance.”
If your insurance agent is also a broker, like Crystal-Lee, you have options if this happens to you. You can shop around for what is called a surplus carrier. Their rates are higher since the risk to them is greater, which is because they are not backed by the states’ Department of Insurance. Also, their coverage is less than a typical policy, but at least you would be insured.
As a rule of thumb, it is always a good idea to talk to your agent first before filing a claim. This way, you can avoid getting dropped or non-renewed and keep your good insurance.
If you have further questions about claim frequency, please reach out to Crystal-Lee; we couldn’t recommend her enough! As always, call or email us with any real estate questions. We look forward to hearing from you.
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