Owning a home is a major investment, and having homeowners insurance can help protect your property from unexpected damages. But what happens if you need to file a claim? Does filing a claim increase your homeowners insurance premium? The answer is yes—filing a claim usually does result in an increased premium. This article will explore the reasons behind this, as well as some tips on how to avoid filing claims and keep your premiums low. Read on to learn more!
What is a homeowners insurance policy?
A homeowners insurance policy is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or on the property.
How does filing a claim affect my premium?
When you file a claim with your homeowners insurance company, your premium may go up. This is because filing a claim is considered an at-fault accident. Insurance companies typically increase premiums for at-fault accidents because they are more likely to result in a future claim. If you have multiple claims on your record, your premium will likely increase more than if you have just one claim.
Will my rates go up if I file a claim?
If you have a claim, your insurance company will likely raise your rates. How much they raise your rates depends on the insurance company and the claim itself. Some claims, like wind damage, are out of your control. But if you have a lot of claims or claims that are due to your negligence, your rates will probably go up quite a bit.
How much will my rates go up?
If you have a claims history, your rates could go up anywhere from 5 to 25 percent. If you live in a high-risk area, your rates could increase as much. Having a single claim can also increase your homeowners insurance deductible.
Are there alternatives to filing a claim?
There are a few alternatives to filing a claim when it comes to your homeowners insurance. One option is to pay for the damages yourself. This is usually only recommended if the damage is not too severe and you have the money readily available to pay for it. Another alternative is to get a home warranty. This type of warranty covers repair and replacement costs for many of the appliances and systems in your home.
Conclusion
In conclusion, filing a claim on your homeowners insurance can increase the cost of your premiums depending on the type and amount of damage sustained. However, it is important to remember that these increases are generally limited in scope and should not totally deter you from filing a claim if necessary. If you ever find yourself facing property damage or loss as a homeowner, make sure to do research into all available options before taking any further steps toward filing a claim.