Buy a house and get a new insurance policy with open claims?

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Upon advice from my property manager, he said I should have my roofs looked at by an insurance adjuster to see if there was any damage, and if so, try to get a new roof. I have 7 properties, and of those, the adjust said I had 4 properties with hail damage. I decided to go ahead with the insurance adjuster and make 4 claims on these properties. The insurance company (all the same insurer) has said 3/4 can eligible for a full replace for the deductible (5000 each property) I filed these claims last December, and they looked at the roofs with the insurance company in April because of snow. I'm wondering what peoples experiences are with insurance adjusters. I have 2 questions though, as an investor I will be hoping to buy again soon, with 4 open claims would an insurance company insure me? In addition say in 4 months the claims are complete, will it still be very hard to find insurance, or will I have to pay for more high risk type insurance. I am mostly concerned that no insurance will insure me at this point despite having great credit because of 4 claims.

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It is a possibility, and I think all of your concerns are valid. Every insurance company is different and each one beats to their own drum.

Most are deterred by open claims, some aren’t.

I’d really be careful about filing claims often. As a general rule of thumb, I usually tell my clients that if you don’t absolutely have to file a claim, then don’t.

We just had a tornado run through Dayton, so I’ve filed a lot of justified roof claims over the past day and a half.

If you’re going to have that many claims, the strategy I’d suggest is plan to stay with the current insurance company for the next 3-4 years. 

The current insurance company with all of your claims will most likely be ok with insuring another property that you acquire.

Getting new quotes with other insurance companies may do exactly as you suspect and present higher premiums to deter you from signing on with them.

If too many claims are filed and the insurance company decides to non renew or cancel your policy, then it would most likely be difficult to place you with another company on the admitted market. However, there is probably always a company on the non-admitted market that would take on your portfolio.

I’d be happy to answer any more questions if you have any...or if you want me to elaborate on any of those points. 

Thanks!

Thanks ryan, thats basically the info I was looking for. I heard wrong information to think I couldnt get insurance on a new property.

Christina, if a rough costs 10,000 plus you dont think it would be worth it? Even if the rough is 30 years old? I can see on a decent roof that would be true.

There are a lot of variables when it comes to roofing. I assume you're talking about a shingle roof. $10K is a LOT of roof. We've had many single family and small multifamily roofs done for $5K or less. A few have amounted to more, but those were either really large roofs, or there were some other extenuating circumstances, like multiple layers with the bottom one being cedar shake, therefore it not only needed shingles, but all new decking as well. And for what you'll pay later in increased premiums, the claim with that that high of a deductible is just not worth it in my opinion.

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