Will a Claim Increase My Homeowner Insurance Premium?

When it comes to homeowner’s insurance, most of us look for ways to keep our premiums down. Things like burglar and fire alarms, certain types of roof construction, and even some smart home features will earn us a policy discount. But what happens if you need to file a claim? Will your home insurance premium go up after you report a claim to your carrier?

Unfortunately, there is no easy answer to the question. Many factors can cause your homeowner’s insurance premium to increase – and yes, claims are certainly one of them. So, the answer to the question, will my home insurance premium for up after I file a claim is yes, it could. And the answer is also, no not always. Let’s look at a few scenarios.

Not putting in a claim and getting a premium increase

It is possible that your home insurance premium increases even when you haven’t filed a claim. Your insurance company may have raised rates across the entire state or county. If this is the case, you may be hit with a premium increase and have never filed a claim.

Excessive claims can create a surcharge or even a non-renewal

On the other hand, filing excessive claims may result in your home insurance policy getting slapped with a premium increase or a surcharge. In some cases, a home insurance company can non-renew your policy for poor claims history.

The best way to avoid a claims surcharge is not to file claims unnecessarily. If you have a small problem with the home, try to handle it on your own. Save your insurance policy for significant damage and practice proper home maintenance to avoid making too many claims.

What does my deductible have to do with it?

When deciding to file a claim, consider your deductible. This is the part you must pay anyway before your insurance kicks in. If the claim is going to be under or just slightly above your deductible, it’s probably not worth filing, it. Just pay for the repairs out of pocket and chalk it up to the cost of home ownership.

But if you have a major problem that you cannot afford to fix on your own, then, of course, file a claim immediately That’s what insurance is for.

Just a coincidence?

There are times when home insurance premiums increase, and it has nothing to do with your claim history. Each year insurance companies file their home insurance rates with the state. The state must approve them. If a company requests to increase prices, it has to provide evidence to support the increase.

It’s possible your county or zip code is getting hit with a rate increase, and it has nothing to do with your house particularly. Maybe your county suffered severe flooding last year. You didn’t make a claim, but a lot of people who live in the same county did. That could drive a premium increase on your policy.

Should You File A Home Insurance Claim?

There are no hard and fast rules when it comes to whether your claim will cause your premium to increase. Like most things in life, it depends.

When it comes to filing a home insurance claim, if you’re thinking a lot about it, the answer may be not to file it. If you’re in a situation where you genuinely need to use your home insurance, you’ll know it.

Balsiger Insurance has locations that offer home insurance coverage in Las Vegas, Reno, Corpus Christi, and many other cities and states in the United States. Please contact us to learn more about our home insurance offerings.