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Homeowners Insurance and Prior Loss FAQ

homeowners insurance and prior loss affects

When shopping for homeowner’s insurance, there are many factors that can affect your rates. One of these factors that can come up is known as prior loss. For homeowner’s insurance, a prior loss is one that happened to the house prior to applying for your insurance, whether you were or were not the owner of the home at the time of the loss.

How Do Homeowner’s Insurance Providers Use Prior Loss?

Different insurance providers may use this information in a variety of ways when determining your homeowner’s insurance rates in California and whether or not they will cover your home. Some providers consider prior losses to be predictors of future losses and use statistics to assume you are at higher risk for another loss. This is not the same for all insurance providers, but it is taken into consideration by many.

How Do I Know If I Have Prior Loss?

During the application process, many insurance companies go over some questions and guide you through this. They may also obtain a consumer report known as a loss history report based on the info they gather like your name, date of birth, and property address. For many insurance companies, this is part of the standard process.

What If I Am Denied or Do Not Receive a Good Rate Because of Prior Loss?

Because of the federal Fair Credit Reporting Act (FCRA), insurance companies will likely need to provide you with more information if your Prior Loss affected your insurance quote or if you were denied because of it. Specific laws can vary by state.

If you still need help with the process for applying for homeowner’s insurance, or need additional details about Prior Loss and how it affects homeowner’s insurance in California, one of our insurance experts would be happy to assist you. We have offices in Long Beach, California and Los Angeles, California. Call us today at 877-945-7233.