Will filing an insurance claim increase premiums?

insurance claim

Homeowner’s Insurance Policy

Will An Insurance Claim Increase Premiums?

Most people associate filing an insurance claim with rising policy rates.  The fact is, this is usually not true.  Claims made due to “Acts of God” such as wind, hail, or other storm damage will NOT cause an increase in your premiums.  Furthermore, insurance companies CANNOT drop your coverage for making such a claim.

Property insurance is different from auto insurance.  Auto insurance has dozens, sometimes hundreds of tiers for premium rates.  Auto insurance rates consider claim history, citation record, driver’s license points, and various other factors which contribute to the policy owner’s tier and premium.  But when in comes to property insurance premium rates, claims they do not necessarily dictate the rates for homeowner’s insurance.

Homeowner’s insurance focuses more on the region in which the property is located.

As previously mentioned, an insurance company cannot raise an individual’s rates when a claim is filed due to weather-related damage.  The number of catastrophes an area has suffered in the past few years, the potential risk in the area, the type of residential home, the amount of coverage bought, and other factors dictate premium cost.

Filing one claim will not spike an individual premium rate.

Premiums may go up in the subsequent years, but it is not a direct result of a legitimate claim. The premiums are usually raised in bulk for a given region, not individually, and insurance companies can only submit rate increases once per year.  Thus, when asking yourself, “will filing an insurance claim increase premiums?” tell yourself, “No, it will not.”

In fact, if you have a loss with significant damage, the right thing to do is file the claim.

Why file an insurance claim instead of paying out-of-pocket?

First, you have been paying premiums every year for exactly this reason.  Why not use your insurance for what it’s designed?   Second, most policies require that you MUST notify the insurance company if you have significant damage or coverage could later be rejected for “hiding” this information.  Could you still to choose to pay for your roof out-of-pocket and never use insurance money?  Sure, but if they offer money we suggest taking it.  Think about it for moment…they are returning some of your money you previously gave them.

Finally, rates tend to go up so take advantage of your insurance coverage when you get the opportunity.

Confused or want more information? Trying to understand the costs associated with replacing a roof?  Call, email, post to Facebook, or tweet to us.  No Fee, No Obligation, Just help for you.

Don’t want to talk to anyone and just want a quick, satellite photograph measurement to help estimate the cost for your roof?  Order the Quick Report

If you have a specific roof issue and can send us a photo via email, Facebook, or Twitter, we will do our best to advise you on the specific issue.

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