Will my homeowner's insurance go up if I file a claim?

This is a common concern of many claimants and a valid one.

Imagine this; after many years of faithfully paying their premiums-a homeowner’s property sustains significant damage that necessitates they make a claim. Now, even if the homeowner is not successful in connection with this claim, there may also be further adverse consequences by way of substantial rate increases when it comes time to renew or obtain alternative coverage. And this can be of great concern to a homeowner for a number of reasons.

While there is not an exact formula here, it is generally true that 2 claims within a 5-year period tend to increase rates and making any more claims than that could likely make it rather difficult to find coverage. Also, claims tend to stay on your record for 5-7 years although we have also seen requests for information in litigation related to prior claims dating back as far as 10 years.

This is largely due to the idea that an insurance company will deem that homeowners to be more likely to make further claims and be more litigious in the future, which is “riskier” from an insurance rating standpoint.

As a result, this is an important reason why being judicious with the claims that are made and pursuing legitimate claims in terms of cause and scope is generally advisable. These are the types of claims that we at Kowzan Law proudly assist our clients in maintaining from initial reporting through litigation, if necessary. 

Meanwhile, although it may seem intuitive, it also bears mentioning that it may be preferable to refrain from pursuing certain potential claims when the damage or amount in controversy is more on the minimal side.

For example, if a homeowner is likely to see a rate increase due to the existence of two prior claims having already been recently made and further damage occurs that is more manageable in scope, there may not be an incentive to make the third claim unless the amount they would recover to repair the damage is more than the rate increase they will be experiencing.

In this instance, the homeowner may properly elect to repair the damage with their own funds and refrain from making a claim; opting to save those funds when it comes time to renew. This is a personal choice that is best made after consulting with a qualified property insurance attorney, such as the lawyers at Kowzan Law; who are available to take your call now.

Conversely, if the damage associated with the new claim is significant and the repair monies necessary to address it are substantial or beyond the means of the homeowner to afford- the homeowner likely does not have a great deal of latitude in deciding whether to pursue the more recent claim.

All things considered, even though it may be generally beneficial to remain conservative with the submission of claims; if there is legitimate, significant, damage, that is compensable under the policy and the homeowner is in need of sufficient funds to make repairs, the pursuit of the insurance claim is justified-if not generally advisable.

Remember, at Kowzan Law-we make the insurance company pay by providing full-service representation for homeowners who need to make a property insurance claim and offer complimentary insurance policy reviews. We do not get paid if and until you do! Please also contact us to discuss any concerns you may have regarding the important question of will my homeowner’s insurance go up if I file a claim?