Your insurance premium is not only about your property’s size or location. It also reflects your track record as a landlord. Every time you file a landlord insurance claim, insurers take note. Over time, that record can affect how much you pay for coverage and even whether an insurer wants to cover you at all.
Understanding how claims history affects landlord insurance can help you manage your landlord insurance costs, maintain your reputation with insurers, and protect your rental investments.
What Is Claims History in Landlord Insurance?
Your claims history is a record of every insurance claim you have filed in the past, whether approved or denied. It includes details like the date, type of loss, payout amount, and property location.
Insurance companies track this data through national databases such as the Comprehensive Loss Underwriting Exchange (CLUE). These reports show your personal claims record and the history of each property you own.
Being transparent about your claims is important. Failing to disclose previous claims can lead to denied coverage or canceled policies later on. A clear, accurate history shows insurers that you are a responsible landlord.
Why Insurers Review Your Claims History
Insurance companies use your claims history to predict future risk. If you have filed multiple claims in a short time, insurers see that as a sign that more losses could happen again.
Here’s what insurers usually look at:
- Frequency of claims: Too many claims in a few years can signal high risk.
- Type of loss: Fire, water, and liability claims tend to raise red flags.
- Claim amounts: Large payouts affect your risk rating more than minor ones.
- Resolution: Insurers check how quickly and effectively you addressed the problem.
For example, if you filed several water-damage or burst pipe claims in five years, your insurer may assume your plumbing or maintenance needs attention. Even if you made repairs, the history itself can still impact your rate.
How Claims History Affects Landlord Insurance Premiums
Your claims record directly influences your insurance cost. Every insurer uses its own formula, but most follow similar logic: the more claims you make, the higher your premiums will be.
Here’s how your claims history can affect your coverage:
- Higher premiums: Frequent claims increase your risk score, which raises your annual rate.
- Policy restrictions: Insurers may limit coverage for recurring issues like leaks or theft.
- Higher deductibles: Some insurers raise your deductible to reduce future payouts.
- Nonrenewal or denial: In severe cases, an insurer may refuse to renew your policy or decline new landlord insurance coverage.
Keeping your claims history clean helps you qualify for lower rates, higher coverage limits, and better renewal terms.
The Difference Between Property and Personal Claims Records
When evaluating risk, insurers review both the property’s claims record and the landlord’s personal record.
If a specific property has a long history of claims, that reputation follows it, even if ownership changes. For example, if a building has repeated fire or flood landlord insurance claims, future insurers will treat it as high risk no matter who owns it.
At the same time, your personal record also matters. A landlord with multiple claims across several properties may pay more for every new policy. Insurers look for consistency, so a strong track record can make a big difference when managing multiple rentals.
Common Types of Claims That Impact Rates the Most
Not all claims are treated equally. Some types have a bigger impact on your insurance rate than others.
Here are the most common claims that raise premiums:
- Water damage: Frequent plumbing or leakage issues show poor maintenance.
- Fire claim: Structural losses are costly and often lead to long-term rate increases.
- Liability: Tenant injuries or legal disputes suggest higher risk exposure.
- Theft or vandalism: May signal inadequate security or poor lighting.
- Weather damage: Repeated claims for storms, wind or hail deductibles can lead to exclusions in high-risk areas.
Insurers pay close attention to patterns. A single isolated incident may not hurt you, but repeated claims of the same type can make a big difference.
How Far Back Do Insurers Check Claims History?
Most insurers review your claims over the past five to seven years. However, serious or high-value claims can stay on record longer.
Even if you buy a property that already had claims under the previous owner, those claims may still appear in databases tied to the property address. That’s why it is smart to request a CLUE report before buying or insuring a rental.
Knowing a property’s claims history ahead of time can help you negotiate better insurance terms or decide if the property is worth the risk.
How to Improve or Manage a Risky Claims Record
If your claims history is hurting your insurance rates, there are ways to turn it around.
Here are practical steps to improve your record:
- Invest in maintenance or renovations: Fix leaks, replace aging wiring, and prevent hazards before they cause damage.
- Raise your deductible: Paying for small issues out of pocket shows insurers that you take responsibility.
- Bundle policies: Combining multiple properties under one insurer may earn discounts.
- Limit minor claims: Filing claims for small repairs can raise your risk profile unnecessarily.
- Ask for a re-evaluation: After a few claim-free years, request a review to lower your rate.
Proactive landlords who maintain their properties well often see premiums drop over time.
How Landlords Can Dispute or Correct Claim Errors
Sometimes, your claims record may include mistakes. These errors can unfairly increase your premiums or affect eligibility.
Here’s what to do if you spot an error:
- Request a copy of your CLUE report or your insurer’s loss-run report.
- Check for accuracy by reviewing dates, amounts, and claim descriptions.
- Contact your insurer to dispute any incorrect entries.
- Provide documentation such as receipts or repair reports to support your claim.
- Follow up to ensure the corrections are made in the database.
Keeping your record clean and accurate ensures insurers see your true risk level and helps you qualify for fair rates.
Protecting Your Investment With the Right Insurer
Every landlord will file a claim at some point, but how you manage those claims matters. A strong maintenance routine and honest communication with your insurer can make a lasting difference in how you are rated.
Working with a trusted insurance provider helps ensure that one bad year does not define your long-term coverage options.
Get Covered With Confidence Through Obie Landlord Insurance
Your claims history tells a story about how you manage your properties. Obie helps landlords protect what matters most while keeping insurance simple and transparent.
Whether you have a clean record or a few past claims, Obie Landlord Insurance can match you with a policy that fits your needs and budget. Get a quick quote online, compare your options, and secure coverage that gives you confidence in every rental you own.
FAQs about How Claims History Affects Landlord Insurance
How many claims is too many for landlord insurance?
Most insurers view two or more claims in a five-year period as high risk. The impact depends on the type and size of each claim.
Do small claims affect insurance rates?
Yes. Even small claims can influence your premium if filed frequently. Paying for minor repairs out of pocket often keeps rates lower.
Can I change insurers if I have a poor claims record?
You can, but new insurers will still see your history. Shopping around can help, but expect higher premiums until you build a cleaner record.
How long do insurance claims stay on record?
Claims generally stay on your record for five to seven years. Major losses may remain longer, depending on the insurer’s policy.
Will my premiums go down after several claim-free years?
Yes. Most insurers reward claim-free periods with lower premiums or loyalty discounts. A clean record over time helps rebuild your risk rating.
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