How Long Does a Claim Stay on Your Record?

Claims on your homeowner's insurance policy will remain on your record for five to seven years, depending on the insurance provider that pulls your claims history. The duration may also depend on the nature of the reported damage. Claims filed by prior homeowners of your home may also appear in your claims history.

When you apply for house insurance, the majority of firms will review your claims history from the previous five years via a database such as CLUE. Based on the information contained in your CLUE report, an insurance provider may increase your premiums or refuse your coverage.

Your CLUE report may also contain allegations from previous homeowners if they occupied the property within the preceding five years. Depending on the nature of these prior claims, an insurer may deem your home or neighborhood to be at a higher risk for certain types of losses and charge you a higher rate. Since you will likely continue to submit claims, insurers may also price you higher premiums if you have a lengthy claims history.

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 damages your house has sustained. Claims, including water damage, theft, and dog bite liability, affect your premiums more than weather-related losses.

Claim-related rate hikes are typically disclosed at the annual insurance renewal. If you've noticed that your premiums have increased since your previous policy renewal, be sure to ask your insurance provider why.