Does Filing a Claim Result in a Hike in Insurance Rates?

3/10/2021 (Permalink)

Filing an insurance claim.

Does Filing a Claim Result in a Hike in Insurance Rates?

There are many potential sources of water damage besides natural disasters. A pipe bursting because it froze from a sudden temperature drop may lead to a home flood in your bathroom or kitchen. Unnoticed drips from faulty gaskets can soak into floors, leading to large messes and mold growth before discovery. According to the United States Environmental Protection Agency, the average household experiences leaks that cause almost 10,000 gallons of water loss annually, with 10% of families wasting 90 or more gallons a day. That's a lot of liquid possibly saturating your house and causing harm. If you encounter such a circumstance, one of your first actions would probably be to contact your indemnity provider so you can get a professional cleanup and restoration service in Deerfield Beach, FL, to come out and begin handling it. However, you may be wondering if filing an insurance claim will raise your rates. The answer is, it depends.

There Are Other Factors That Matter
Whether or not your monthly payment goes up is largely situational. If you fall into certain categories, it will likely see an upsurge:

• You reside in an area prone to crime and severe weather
• You choose a liability claim over a property one, and it is not your first one
• Your home has a history of frequent claims
• The damage is extensive
  

The Price Leap Isn't Permanent
Your premium will probably go back down. Most companies will keep a record of the insurance claim for a number of years before lowering your rates again. They may never drop back to the original value though.

The Amount Rates Change Varies
This is dependent on how much of a risk you are perceived as. The considerations that impact whether you have to shell out more after a claim in the first place also influence how much more you must pay. A hurricane will probably cause your rates to soar in comparison with a small claim for a burst pipe.
Whether or not your insurance claim leads to a rise in your policy payments changes on a case-by-case basis. Greater likelihood of you needing to utilize your provider's services correlates to higher hikes.