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Home insurance problems

The 5 Biggest Problems with Home Insurance

Home insurance problems are more common than you might think. Did you know that some of the biggest home insurance companies—like State Farm, Allstate, and USAA—deny nearly half of their claims? That’s right, half! But that’s just the beginning of what we’re revealing today.

Stay tuned to learn about the biggest problems with home insurance, and most importantly, how Trailstone Insurance can help you protect yourself with better coverage and fair pricing.

Introduction

Home insurance should be simple—you pay your premium, and when something happens, your insurance company covers it. However, that’s not always the case.

Today, we’re breaking down the five biggest problems with home insurance that the big insurers don’t want you to know about—and most importantly, what you can do to avoid them.

Problem #1: High Claim Denial Rates

Let’s start with a shocking fact. Some of the largest insurers deny nearly half of homeowner claims.

According to Weiss Ratings, the claim denial rates for major insurers are alarming:

  • Farmers Insurance Exchange: 49.7% of claims denied

  • USAA: 48% of claims denied

  • Allstate: 47.1% of claims denied

That means nearly half of homeowners filing claims are left without any help after disasters, fires, or floods.

If you want to avoid being left with nothing after a claim, work with independent providers like Trailstone Insurance. We ensure you get the best chance of approval when you need it most.

Problem #2: Steep Premium Increases

Next, have you noticed your home insurance premiums rising every year? You’re not alone. In 2023, home insurance premiums jumped by 11.3%, but some insurers saw even higher increases:

  • Farmers: 19.4%

  • Liberty Mutual: 17.2%

These increases are far higher than the rate of inflation. The reality is that your risk didn’t necessarily increase; instead, the insurance companies are raising premiums to cover their rising costs and increase profits.

If you’re tired of your premiums rising year after year, call Trailstone Insurance. We’ll help you shop for better rates and ensure you get competitive pricing from multiple providers.

Problem #3: Policy Non-Renewals in High-Risk Areas

If you live in a high-risk area, such as one prone to wildfires, hurricanes, or other disasters, your insurer might just drop you.

According to National Mortgage News, insurers have been pulling out of high-risk areas, leaving homeowners without coverage. For example, State Farm non-renewed 72,000 policies in California due to wildfire risks. Additionally, if you’ve had two or more claims in the last three years, many companies will non-renew your policy.

Instead of adjusting your coverage, many insurers just cut and run when risks increase. At Trailstone, we work with regional providers who specialize in high-risk areas and ensure you always have options.

Problem #4: Lack of Transparency & Poor Communication

If you’ve ever tried reading your home insurance policy, you know it’s like trying to decode ancient hieroglyphics.

The big insurers thrive on complexity because if you don’t understand your policy, you don’t know what’s covered or what’s NOT covered.

And when you need help? Many companies hide key details and use call centers that keep you on hold for hours.

At Trailstone Insurance, we simplify the process by having dedicated agents who can break down your policy in plain English. We make sure you understand exactly what you’re paying for.

Problem #5: Discriminatory Pricing Practices

Did you know that your credit score, job, and even ZIP code can increase your insurance rates?

Some insurers rely on factors like these, which have nothing to do with the actual risk of your home, to set your rates. This practice disproportionately impacts low-income and minority communities, leading to unfair pricing.

At Trailstone, we don’t let bad algorithms dictate your rate. We work with over 40 insurance companies to make sure you get the best pricing, and we won’t allow discriminatory pricing to affect your coverage.

What Should You Do?

Now that you know the five biggest problems with home insurance, here’s what you can do to protect yourself:

  • Review your policy: Make sure you’re not being overcharged or under-covered.

  • Compare options: Don’t settle for one provider just because it’s familiar. Shop around for better deals.

  • Talk to an independent agent: Independent agents—like us at Trailstone—work for you, not the big insurance companies.

Conclusion

Home insurance doesn’t have to be a headache. At Trailstone, we provide better coverage, fair pricing, and transparent communication to protect your home and belongings.

Click the link below or reach out today for a free policy review. Let’s make sure you have the right coverage at the right price.

Thanks for watching, and stay safe out there!