Do prior losses matter in insurance policies?
When individuals purchase a home, they are required to obtain homeowners’ insurance. When determining your insurance rates, the insurance company will take a number of different factors into consideration. Some of these factors include the proximity to flood zones, the types of natural disasters that frequent the area, and even the prior losses that you have had to report for other insurance policies over the years.
One of the reasons that this factor is taken into consideration is because statistically, individuals who have had previous losses have a higher chance of an additional property loss in the future. This can result in a number of issues for homeowners because having prior losses on your insurance history may make it more difficult to obtain home insurance coverage. Of course, this is very unfortunate for those who have been negatively impacted by a serious natural disaster such as a hurricane, wildfire, or tornado and cannot control the fact that they faced prior damage.
If you were the victim of a natural disaster and therefore, suffered negative impacts when trying to obtain homeowner’s insurance down the road, you may want to speak with an experienced insurance law attorney who can assess your situation and help you overcome this obstacle.
The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.