How We Earned Over 1,000,000 Points from an Insurance Claim
Turn Large Expenses into Luxury Travel
Back in 2020, our home was struck by a severe hailstorm, causing $50,000 worth of damage. Thankfully, our insurance stepped up quickly, writing us a check for the full amount. Instead of just repairing our roof, I saw an opportunity to earn points on large purchases, turning this unexpected expense into luxury travel.
Maximizing Bank Bonuses and Credit Card Offers
Immediately after receiving the insurance payout, I opened two separate Chase bank accounts, depositing $25,000 into each. By holding the money there for just 90 days, I earned a total of $2,400 in cash bonuses—that’s $1,200 per account.
But that was just the beginning.
At the same time, I noticed an incredible (though now long-expired) offer through Resy: the American Express Platinum Card was offering 125,000 Amex points and 15x points on up to $25,000 spent at local small businesses. As luck would have it, my buddy from the Navy, Phillip Campbell, had recently started his own roofing business locally. I immediately saw this as another opportunity to earn points on large purchases.
Phillip, through his company, Armour Roofing, took care of our entire roofing job, providing exceptional service, including a complimentary upgrade to architectural shingles. We settled the full amount using two Amex Platinum cards—one for me and one for my wife. By doing this, we amassed a staggering 1 million Amex points from a single insurance claim. We didn’t even pay any credit card fees!
Converting Points into Luxury Travel
These points were incredibly valuable. With the million, we booked multiple luxurious trips, including an unforgettable 28-day European adventure for just $6,700 out-of-pocket.
Highlighting the value, I secured six lie-flat business class tickets from DFW to Europe for just 350,000 points; the cash equivalent would have been an astronomical $28,000.
In total, this single insurance claim translated into more than $50,000 worth of travel.
Completely Legal, Completely Rewarding
You might be wondering if this was legal or even ethical. Absolutely! I paid my deductible, and my roofer chose not to pass along any credit card processing fees. There’s no law or insurance regulation against maximizing rebates or rewards through your personal spending. Just to be safe, I even checked with my cousin—my insurance agent. His response? “You paid your deductible, got your home fully repaired and earned a million points? Great Job!”
Key Takeaway for How to Earn Points on Large Purchases
The real takeaway here isn’t just to brag about my amazing luck—it’s to inspire you to maximize your major expenses. If you have a large expense coming up (like a new roof, home remodeling, wedding, or college tuition), carefully consider your payment methods. Strategically applying for the right credit card can yield immense value.
Note:
- Even if you don’t want to keep the card long-term, hold it for at least a year to avoid penalties or negative credit impacts.
- Never cancel a credit card within the first year or before the annual fee posts to avoid issues with the bank.
Example to Amass Points
Let’s say you’re facing a $20,000 repair bill:
- Apply for the Chase Sapphire Preferred card, earning 60,000 points after spending $4,000.
- Then, apply for a Chase Ink Business card (which won’t appear on your personal credit report), earning 80,000 points after spending $8,000.
- Refer your spouse or partner to the Chase Sapphire Preferred and earn an additional 10,000 referral points, plus they’ll earn their own 60,000 signup points.
In total, you’d collect 230,000 points from a single expense, incurring just two $95 annual fees (Ink Business has zero fee). This can easily pay for airfare for two and a 5night stay at the Park Hyatt St Kitts. It could get you 5 nights in the Jungle of Costa Rica, or a roundtrip business class tickets for two to Europe. You could get a Family trip to Hawaii in economy for four and still have 70k points for hotels!
Tips for Credit Card Applications
- If you have established business credit, apply for business cards first, as they don’t count towards Chase’s 5/24 rule (limiting you to five new accounts in 24 months).
- Wait a few weeks between applying for personal and business cards for optimal approval chances.
Opportunities like our 2020 hailstorm scenario don’t come around every day, but staying alert to credit card promotions can transform major expenses into unforgettable experiences. It’s all about finding smart ways to earn points on large purchases and turning life’s big bills into even bigger travel wins.
Happy point hunting!
