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File just one property claim to your insurer and you can expect to see your premiums soar by hundreds of dollars in some states.On average, filing a single claim -- for anything ranging from a stolen bicycle to tornado damage -- will result in your monthly premium being raised by 9%, according to a report released by InsuranceQuotes.com.File a second claim and premiums climb by an average of 20%. "Winning a small claim could actually cost you money in the long run," said Laura Adams, InsuranceQuotes.com's senior analyst. "Homeowners need to be really careful. Even a denied claim can cause your premium to go up." Related: Which natural disaster will likely destroy your home? And the size of the claim has little impact. Filing a small claim increases your rates by just about as much as filing a catastrophic one. "The insurers have found that people who make a claim are more likely to make another," said Adams. "You've become a riskier customer." Yet, the type of claim does matter. Liability claims, such as from personal injuries, are the most expensive type of claim,with insurers raising premiums by an average of 14%, InsuranceQuotes.com found. Other claims that lead to big premium increases are theft and vandalism, which often indicate that the home is in a neighborhood that is unstable or falling prey to blight. In bad neighborhoods, these crimes can recur, and the high premiums reflect that. The premium increases also vary greatly by state. Homeowners in Wyoming saw the biggest increase in their premiums -- an average of 32% -- after a claim was filed.While the hikes are high, the state tends to charge fairly low premiums of about $770 a year, considerably lower than the $978 national average. Policyholders in Connecticut, Arizona, New Mexico and California also saw large hikes of 18% or more. Meanwhile, homeowners in Texas, where insurers are not allowed to raise premiums on the basis of a single claim, saw no increase. And homeowners in New York and Massachusetts paid very little more after filing claims. Average premiums range from a low of $513 a year in Idaho to $1,933 in Florida, where frequent hurricanes drive insurance costs up. Once your premiums are raised, it can be difficult to get them reduced. Insurers keep a database called the Comprehensive Loss Underwriting Exchange, or CLUE, which tracks seven years' worth of your auto and property insurance claims, as well as any inquiries you may have made about a claim. The database then compiles a report based on your claims history that is then used to determine whether to cover you and how much to charge. The information is available to all insurers so even if you switch providers, your rate with the new carrier may be just as high. Related: Damaged home? How to get an insurer to pay up "You can't escape your claim history," said Adams. But you are not completely without hope. Here are some ways to try and keep your homeowner's insurance costs down: Raise your deductible. But not so high that you can't afford to pay out-of-pocket costs if damage occurs. Don't make small claims. Getting a few hundred dollars back if a tree limb falls on your shed may feel good but you could be paying that back to your insurer over the next few years -- and then some. Don't use homeowners insurance as a maintenance tool. Don't file a claimto pay for small repairs, such as when wind blows some old shingles off your roof. Use it for catastrophic repairs only. Shop around often. Look for quotes once a year. There's lots of competition in the industry and you may be able to buy equal coverage and service for a lower price. CNNMoney (New York) First published October 19, 2014: 10:12 AM ET In this article:
Your home is probably the most expensive thing you own, and protecting that asset doesn't come cheap. The average homeowners insurance premium is $1,249 annually, according to the latest data from the National Association of Insurance Commissioners (NAIC). That cost is nothing to sneeze at, and filing a homeowners insurance claim could unfortunately cause your premiums to rise even higher. Whether they go up and by how much depends on a variety of factors, including the type and severity of the claim. How Does Filing a Claim Affect Your Home Insurance Premiums?When you contact your insurer to file a homeowners insurance claim, you'll be assigned a claim number and claims adjuster who will handle your claim. Generally, you'll submit documentation of the loss, and a claims adjuster will visit your home to survey the damage and estimate your payout. Different types of homeowners insurance claims may affect your premiums differently. A 2021 survey of claims found weather-related claims generally have the least effect on premiums, while fire-related claims have the biggest effect. Source: Insurance.com Keep in mind that these figures are averages, and depending on your situation, your home insurance premiums may not rise at all. A 2019
Consumer Reports survey found that 50% of respondents who filed a home insurance claim in the previous three years didn't experience a premium hike; just 12% said premiums rose by $200 or more annually. What Else Affects Homeowners Insurance Rates?Filing a claim isn't the only thing that can make your homeowners insurance premiums go up. Other factors that could increase your rates include:
How to Decide When to File a ClaimSince filing a homeowners insurance claim can have a big impact on your premiums, should you try to avoid making a claim? If the cost of the damage is not much more than your deductible, it likely won't be worth the risk that filing a claim could raise your rates. For instance, if repairing broken windows will cost $1,500 and your insurance deductible is $1,000, filing a claim would only net you $500 and could cause your rates to rise. If your insurance company gives you a discount for being claim-free, filing a claim will cost you that discount. Also consider whether you've filed any claims in the recent past. Even if the claim was with another insurer, it remains on your C.L.U.E. report for seven years. Filing another claim while previous claims still appear on your C.L.U.E. report could cause your premiums to go up. Previous claims by prior homeowners can also affect your home insurance rates. If you've lived in your home less than seven years and aren't sure if the prior owners ever filed a claim, contact LexisNexis for a copy of the C.L.U.E. Home Seller's Disclosure Report, which will list any insurance claims filed on the home in the last five years. You can get a copy online, by calling 888-497-0011 or by emailing . It may be frustrating not using the insurance that you've paid for. However, homeowners insurance is meant to help with major catastrophes, not with comparatively small home repairs. If you suffer a major disaster, by all means
file a claim. If the stakes are lower, weigh the benefits of filing a claim against the risk of higher premiums in the future. Ways to Lower Your Home Insurance PremiumsIf you need to file a claim and are worried your rates will go up, there are steps you can take to save on insurance. Consider increasing your deductible or bundling home and auto insurance. You can also make safety improvements such as removing dry brush near your home if you live in a fire-prone region, installing a security system or upgrading old plumbing. According to Consumer Reports, these actions could potentially save you 6% percent or more on insurance premiums. Improving your credit-based insurance score may also help keep your rates down. While this score is different from credit scores used by lenders, it takes into account many of the same factors, such as your history of on-time payments and your credit utilization ratio. Check your
credit score; if it could use improvement, your credit-based insurance score probably can too. Reducing debt, bringing past-due accounts current and paying your bills on time can help raise your scores—and possibly lower your premiums. Do claims make home insurance go up?Homeowners insurance rates often increase after a claim because it leads your insurance company to believe that you are more likely to file another claim in the future. This is especially true for claims related to water damage, dog bites and theft.
How many claims is too many on home insurance?In general, there is no set amount to home insurance claims you can file. However, two claims in a five year period can cause your home insurance premiums to rise. Over two claims in the same period may affect your ability to find coverage and even lead to a cancelled policy.
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How much will homeowners insurance increase after a claim
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