When your property suffers damage after a storm or accident at home, you rely on insurance to help with the cost of repairs. After all, that’s why you got insurance in the first place. However, you may wonder, “How does making a claim affect my home insurance?” After making a claim, you can expect an increase in your homeowners’ insurance policy cost.
The consequences of making claims on home insurance could include an increase in the premium of between 10% and 20%. This is only an average, as percentage increases outside this common range are also possible.
The influence of claims on home insurance policy rates can vary considerably. Depending on the circumstances of your case, it’s possible you won’t see an increase in your policy costs or one that is only temporary. Ultimately, it helps to understand the ramifications of receiving an insurance payment before choosing whether to file a claim.
What Factors May Cause an Increase in Your Insurance Costs After Making a Claim?
Insurance companies usually do not impose a blanket increase on every homeowner who files a claim. Instead, the insurer will consider multiple factors before deciding whether to increase your insurance premiums, including the following:
- The reason for the claim, such as storm damage, theft, etc.
- Recent statistics related to crime or inclement weather events in your location.
- Any history of claims you made related to your home insurance.
- The frequency of similar claims made in your vicinity.
You may experience changes in home insurance due to filing claims if you live in an area with rising crime rates. If the insurance company determines your theft-related claim is extremely rare for your area, it may not raise your rates.
The insurance company might see a large influx of claims in your area after a hurricane leaves behind extensive damage. If so, adjustments to home insurance after making claims will likely affect every home in the area.
Can an Insurance Company Raise Rates for Any Reason?
Even though making a claim may up your home insurance cost, the insurer could try to increase your policy rates for other reasons that are unfair under state regulations. For instance:
- If you ask the insurer about filing a claim but do not actually file it, the insurer shouldn’t increase your rates.
- If the insurer denies your claim, your rates should not increase.
- If a natural disaster causes the damage, the insurer should not increase your rates after a claim.
Remember that each case is a little different, so a rate increase that was illegal in one circumstance may be legal in a similar circumstance. If you believe the increase in costs occurred unfairly, you may have a chance to dispute the increase in rates, in which case seeking legal help would be wise to protect your rights.
Let McLaurin Law, PLLC, Help You Understand How Making a Claim Affects Your Home Insurance
At McLaurin Law, PLLC, we help homeowners protect their rights when making residential property insurance claims. We can advise you on what to consider when filing a Texas insurance claim for damage at your home. We can also discuss the effects of filing a claim on home insurance rates.
Insurers don’t always treat homeowners fairly, so making a claim could affect your home insurance. The insurance company may raise your premiums unfairly after you make a legitimate claim or for another reason.
To further discuss the impact of claims on home insurance premiums and see whether an insurer violated your rights, call McLaurin Law, PLLC today at (713) 231-5903 or contact us online.
