How does size of loss affect future premium and ability to change carrier? Jennifer Obrien asked 1 year ago
How does size of loss affect future premium and ability to change carrier?

We purchased this house 13 months ago. Our 1st claim was water leak prior owners did not disclose and is being subrogated, total 25k. Our 2nd claim, barely into yr 2, was a pipe burst. We called the insurance co, who sent out the water mediation company and had a direct billing relationship with them for the clean up. The company wanted to do things their way and ignore the customer. Issues were repeatedly brought up to the adjuster during the 1st week.

When interviewing rebuild contractors- mold was noticed growing from areas specifically questioned earlier without being addressed. Plenty of photos show no mold when pipe broke, no mold when the co left and mold in streaks 10 days later.

Prior to mold discovery, claim was about 70k + whatever was paid to the water mediation company.

New mold abatement company and our 3wk rental will be about 25k. The adjuster basically indicated it would get swept up in the water leak claim.

Obviously our claims will raise our premiums going forward, but won’t the larger size raise them that much more and make us appear that much less attractive to other companies once this is over? Is there a way to insist the mold abatement come out of the 1st water mediation companies E&O insurance? (Bonus, in CT there is no mold remediator certification or licensing. Does that make it nearly impossible to say they were negligent? It’s the main reason I can think of the insurance company would try to avoid it.)

1 Answers
Answer for How does size of loss affect future premium and ability to change carrier? United Policyholders Staff answered 1 year ago

It is difficult to give you a definitive answer whether the claim will or will not affect your premium. Rates and rating rules along with underwriting criteria will vary company to company. Increases as a result of a claim or claims can occur. However, in addition an increase may be the results of several others factors such as a change in the amount of coverage due to inflation guard protection, changes in credits. Any increase would need to be consistent with their rates and rating rules on file with the Connecticut Insurance Department.