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Does Filing A Claim Impact Your Insurance Premium?

When it comes to your insurance premium, there are many factors that can impact your rates. One of those factors could be filing an insurance claim. Though it is in your best interest to file an insurance claim if your home has suffered from a fire, theft, hail, flood, wind, or storm damage, you may also be thinking  about how it can affect your insurance policy going forward.

So does homeowners insurance go up after a claim is filed? Read on to learn more about what you should know about filing an insurance claim and how your insurance policy rates may be affected. Your Insurance Attorney is a top property damage lawyer Miami residents trust. Call Your Insurance Attorney today for your insurance litigation needs!

What You Should Know About Filing a Claim

The simple fact is that filing a single home insurance claim will probably raise your premiums. CNN reported that monthly homeowners premiums increase by an average of 9% following a single claim on your home insurance policy. With another claim on your home insurance policy following a certain period of time (like 7 years) then almost certainly they will rise even more, with an average of 20%.

Moreover, the size of the claim you make doesn’t have much of an impact on how your premiums rise. No matter if your claim is costing your insurance company $100,000 or $5,000, there is much less influence of the amount or size of the insurance claim on your premium rates versus the simple fact of if a claim has been filed or not. However, the type of claim you file does make a difference.

Top property damage lawyer Miami trusts, Your Insurance Attorney, notes that liability claims, for example, such as personal injury claims, can be particularly expensive for your insurance premiums, raising them for about 14% with just a single claim on your home’s liability coverage.

Does Homeowners Insurance Go Up After a Claim?

If you are wondering whether or not homeowners insurance actually goes up following a claim, the answer can be complicated. Theft and vandalisms can lead to significant rises in premiums, and large widespread storms and catastrophes that cause millions or even billions of dollars in property damage to an area and leads to thousands of insurance claims and lawsuits against insurance companies will also raise premium rates for everybody.

This is due to the fact that they may redefine higher risk areas and also need to recuperate expenses due to these claims in these areas. This means that if you’re in an area affected by a natural disaster or widespread storm, even if you don’t personally file a claim, you may still have an increase in your premium when you renew.

After all, insurance companies write coverage based on using historical information to predict the amount of risk for potential insurance claims. Moreover, premium increases also vary between states, since the regulation is handled by each state.

Homeowners Insurance Attorney

If you’re wondering, does homeowners insurance go up after a claim, the answer is generally yes. This is why you want an attorney on your side. Your Insurance Attorney is a top property damage lawyer Miami residents trust. Call us today for your insurance litigation needs!

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