How to Keep Your Home Insurance Rates From Going Up After Filing A Claim

Before submitting a homeowners insurance claim, consider whether you could cover the expense with a few months' worths of money. If the damage or loss is near your deductible, filing a claim may not be worthwhile.

Say, for instance, your homeowner's insurance deductible is $1,000. After paying your deductible, you would only receive a check for $100 if your septic tank is broken, and the estimated cost to fix it is $1,100. In this scenario, a $100 savings is not worth the possibility of a premium hike at the next policy renewal.

However, house insurance exists for a purpose, and filing a claim is frequently inevitable. If your house insurance premiums increase following a claim or renewal, it's usually time to search for a new policy. Even if you've filed a claim in the past, you may be able to obtain the same coverage for a significantly reduced rate.

What effect do claims have on homeowner's insurance?

Claims can affect your homeowner's insurance in two significant ways: they can increase your premiums and make it more difficult for you to purchase insurance in the future.

When obtaining house insurance estimates, your premiums will be influenced by your claims history and the chance of filing a claim. More risk-averse companies may deny you coverage entirely if they observe that you have made several claims.

In addition to the frequency of claims, insurance companies will also consider the kind of damages your house has sustained. Claims, including water damage, theft, and dog bite liability, affect your premiums more than weather-related losses.