Uplisting Insurance: Moving to a Higher Tier

What is Uplist in Insurance?

An uplist in insurance refers to moving a policyholder into a higher risk tier upon renewal of their policy. This typically results in an increase in premiums. Uplists happen when an insurance company’s underwriting or risk assessment determines that an insured now falls into a rating tier with higher risk.

Why Do Uplists Occur?

There are a few common reasons why an insurance company may uplist a policyholder at renewal:

• The policyholder filed one or more claims in the previous policy term – Multiple claims can signal higher risk to the insurer
• The policyholder had changes in risk factors like an at-fault accident, driving violations, claims on another policy, changes to the insured property, etc.
• Updates to the company’s underwriting guidelines put the policyholder into a higher tier
• General rate increases impacted the policyholder’s pricing tier

So in short, uplists happen because something caused a change in the risk rating or pricing model that puts the policyholder into a group with higher average claims, losses or expenses.

Effects of Uplisting

The main effects of uplisting a policyholder are:

• Higher premiums – Getting moved into a higher risk tier leads to increased rates to match the risk
• Potential changes in coverage – In some cases, the policyholder may lose access to certain coverages or coverage limits
• Increased likelihood of non-renewal – Too many uplists may cause the insurance company to non-renew the policy instead of continuing coverage

So while minor uplists are common year-to-year, significant or frequent uplists can begin pricing customers out of policies or losing valuable coverages over time.

Appealing Uplists

If you receive a premium adjustment due to uplisting that you feel is unfair or inaccurate, you do have options:

• Call your insurance company and contest the uplist – Provide any documentation or rationale for why your risk doesn’t warrant it
• Take risk mitigation steps before your next renewal – This may include things like taking a defensive driving course, installing home security measures, etc.
• Shop around before renewal at other insurance companies – Their risk models may view you differently

While there is no guarantee you can reverse the effects of uplisting, it’s worth exploring appeals or alternatives rather than overpaying on premiums long-term.

When Do Uplists Usually Happen?

The most common timing for insurance policy uplists is at renewal. This is when insurance companies re-evaluate policies to align pricing with risk. However, uplists can also happen mid-term if there is some change that warrants it, like:

• At-fault accident
• Major claim
• DUI or other major violation
• Changes to the insured risk like renovations, pool installation, new driver, etc.

So while the yearly renewal process accounts for most uplists, major shifts in risk can cause uplists to happen anytime.

Key Takeaways

Getting uplisted in insurance means you are perceived as higher risk and will pay more in premiums. While no one wants an insurance uplist, being aware of why they happen and your options if impacted can help you make better insurance decisions. Comparing rates annually and maintaining low risks are the best protections against unwanted policy uplists.