When the unexpected happens to your home, you’ll be glad your homeowner’s insurance was there to help reimburse you for covered costs. But how will that claim affect your policy moving forward? Will your monthly premium increase?
Whether or not your insurance premium will increase (and by how much) depends on several factors, including:
- Type of claim
- Extent of the damage
- Where you live
- Your personal claims history
In general, your rates are more likely to increase after non-weather-related claims such as theft, water damage, vandalism and liability claims. Personal liability claims often result in the biggest insurance payouts due to large legal fees and settlements, making them red flags for insurers.
Put simply, your rate may increase after a claim if your insurance company believes you are more likely to file a similar claim in the future.
Typically, claims relating to weather damage or natural disasters are not as likely to result in a rate increase.
