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Can your insurance company raise your rates after a homeowners claim?

On Behalf of | Sep 10, 2021 | Firm News

You pay insurance because you know that there is a risk that something could happen to your home. Your insurance coverage is a set rate that you pay out monthly, twice a year or annually, depending on the policy, and it’s expected that the insurance will cover any losses you suffer within a set range of conditions.

As a homeowner, you can file a claim for many reasons ranging from weather-related events to water damage, electrical damage or other issues. If you do, though, you should know that your homeowners insurance rate is likely to increase. It could increase even if your claim is denied, which is why it’s worth fighting an appeal if your claim isn’t approved the first time.

Is there a normal increase that is acceptable after a claim?

After making a claim, every insurance company will treat you differently. It’s typical to see a percentage increase on the cost of your insurance based on the total number of claims you’ve made. A single claim may or may not increase your rate (depending on the policy). However, most insurers will increase your insurance rates when you file a claim by at least 17%. Some of the averages include increases that equal:

  • 29% for a first fire claim
  • 60% for a second fire claim
  • 18% for a medical claim
  • 17% for a weather-related claim the first time
  • 34% the second weather-related claim

An insurer could also drop you if you make an insurance claim within the first 60 days after you purchase your insurance. However, if your insurer tries to drop you over a claim after that point, then you may be able to hold them responsible for violating your contract.

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