If I File a Claim, Will my Rates Ever Get Lower?

When you file a claim with your homeowners insurance you can expect your rates to increase the next year. Even if you switch providers you can expect a higher rate when you have made a claim. This is just how it is with all aspects of insurance. A claim means you are increasing your risk level as one claim suggests the need for another one down the road.

This is one of the annoying things about insurance and one of the reasons why many homeowners will actually only claim in the event of serious incidents, such as the need to file loss of use home insurance. You need to think about how much you will be spending out of pocket by replacing the damaged goods or paying out of pocket for the leaking roof, etc. You also need to keep in mind how much your deductible is and how much your rates will increase if you do need to make a claim.

If you are unsure whether you should make a claim and what will happen to your rates you can always contact your insurance agency and ask them for an estimate. They should be able to determine how much higher your rates will go and this will help you decide whether it is best to pay the higher premiums for several years or suck it up and pay out of your own pocket now.

The good news is that your rates may get lower over time. While the next year after you make a serious claim you can expect much higher insurance, every year you remain claim free, it should decrease a little bit. However, keep in mind that there is much more to homeowners insurance that just your own risk assessment. One of the biggest things is the market risk level. If you and every other person in your town have suffered damage after a natural disaster, then this is going to impact the overall market rate of house insurance for everyone, including yourself.

Insurance Claims and Premiums

In some instances, however, the pros far outweigh the cons when it comes to filing an insurance claim. If you are looking at a loss of several thousands of dollars then it only makes sense to put in a claim and get this compensation. After all, this is what insurance is there for in the first place.

One of the ways you can reduce your homeowners insurance rate is to make your house as safe and risk free as possible. You might consider investing in storm proof windows as well an alarm system for your home. This can help reduce your individual risk.

Another thing you can do is compare different insurance companies before simply accepting the sky high rate from your current provider. You can still make the switch to another company that might be cheaper, even if you have put in a claim with the other company. While you will need to be honest about the claims history, you might be able to get a better rate by making the switch.

When you file a claim your rates will not get lower but they don't have to be through the roof. Take the time to compare companies and get quotes from various providers of homeowners insurance. This is the easiest way to see what is out there and save, even after making a claim in the previous year. You shouldn't be punished for using your insurance but often it will feel like this when you see the rate increase. If you are unhappy with the service and premiums offered, then make the switch.

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What People Are Saying

"When a hail storm hit our town and destroyed all my windows, I was glad that I had found this site and was able to get a great rate on homeowners insurance. I've been able to make home improvements with the money I keep saving every month."

- Rita E, Atlanta GA