Dropped After Two Home Insurance Claims—Now What?
If your home insurance was just canceled after filing two claims, you're probably feeling stuck. You paid for coverage. You used it. Now your policy’s gone—and finding new insurance suddenly feels impossible.
This is a frustrating situation, but it’s not the end of the road.
The Insurance Industry Is Shifting—Fast
The insurance industry has changed dramatically over the last few years. Between inflation, weather-related losses, and an increase in high-cost claims, carriers are under pressure to reduce their exposure to risk. That’s leading to stricter underwriting and more non-renewals—especially for properties with recent claims.
Here’s what’s being factored in:
- How many claims you’ve filed and how recently
- The type of claims (water, fire, liability, etc.)
- Whether the incidents were preventable or recurring
- Your location and its risk profile
- Property condition and age
In some cases, even valid claims can result in non-renewal if your property is now considered a higher risk going forward.
Relevant Now: What's Happening in 2025
According to recent reports, homeowners insurance premiums in California are expected to jump 30% or more by the end of 2025, largely due to wildfire risk, market exits from major carriers, and rising construction costs. In March, State Farm announced plans to raise rates across the state and limit new policy issuances. Farmers has also adjusted its underwriting standards to match growing concerns about high-frequency claims and property risk.
As the industry tightens, more homeowners are being non-renewed—not just for catastrophic losses, but for “pattern” behavior the system flags as risky.
"Blacklisted" Isn't Official—But It Can Feel That Way
One homeowner put it bluntly:
“You don’t get blacklisted officially, but many insurers share the same rating criteria. Multiple claims = high risk.”
That’s true. You won’t see the word “blacklist” in any system, but once a property has a history of claims, it becomes harder for insurers to justify offering coverage—especially at standard rates.
That doesn’t mean you can’t get insured again. But it does mean your path forward needs to be strategic.
What You Should Do Now
As a Farmers Insurance agency based in Ontario, California, we help clients navigate situations like this every day. If you've been dropped—or you're on the edge—here’s what we recommend:
Talk to an Experienced Agent Immediately
Don't try to figure it out alone. We can review your claims history, assess your risk profile, and explain what your options are through Farmers.
Understand That Higher Premiums May Be Temporary
When you've had recent claims, premiums may go up. That’s not permanent. If you keep your record clean moving forward, you can rebuild your insurability and get back to more favorable rates over time.
Avoid Force-Placed Insurance from Your Mortgage Company
If you lose coverage and don’t replace it, your lender will often place their own policy on your home. This protects their investment—not yours—and comes with higher costs and limited coverage. Avoid this by securing a replacement policy ASAP.
Be Strategic Before You File a Claim
One of the biggest takeaways from this situation is learning how to approach claims moving forward. A homeowner in this discussion said:
“It defeats the purpose of insurance if you’re afraid to use it… but I wish I had known this could happen.”
They’re right—and they’re not wrong.
Insurance is there for major, unexpected losses. But the industry is sensitive to frequency, not just severity. That’s why we recommend asking these questions before you file:
- Is the damage something I could realistically handle out-of-pocket?
- Have I filed a claim in the last 3–5 years?
- Will this trigger an inspection or re-evaluation of my entire property?
- Is this claim likely to increase my future premiums or cause non-renewal?
We’re not saying don’t file—we’re saying file smart.
Our Role as Your Farmers Agent
We work directly with the underwriting team and understand what triggers concern. We can help you:
- Reassess your property coverage
- Understand your claim history and what it means
- Determine if another coverage option is available
- Create a plan to get back on track, even after a non-renewal
We also write:
- Auto, Life, and Business Insurance
- Workers Compensation and Contractor Policies
- Medicare Plans and Business Property Coverage
You’re Not Out of Options
Getting dropped feels like a dead end—but it doesn’t have to be. With the right strategy and support, you can protect your home, stay compliant with your mortgage, and move forward with confidence.
If you’re in California and need help figuring out your next step, call us today.
We’ll give it to you straight—and help you protect what matters most.