As homeowners grapple with skyrocketing home insurance premiums, a pressing question looms: is it worth it to file a claim? After all, no one wants to see their premium increase even more. But with a little bit of knowledge about your policy and the claims process, you can make an informed decision about whether or not to file a claim and what the potential impact on your premium might be. Don’t let uncertainty hold you back from getting the coverage you need. Empower yourself with the information you need to make the best choice for you and your home.
In a perfect world, you wouldn’t have to worry about the consequences of filing a claim. You would simply file, receive the necessary help, and move on. However, in today’s insurance marketplace, it’s essential to be informed and take control of your home insurance costs. By gaining a deeper understanding of what your homeowner’s policy covers and the potential effects of filing a claim, you can make a smart decision about whether or not to file a claim and how it may impact your premium.
By taking the time to research and understand the claims process, you can make an informed decision that protects your home and wallet. Don’t let the fear of rising premiums keep you from getting the help you need. Take control of your home insurance and make the best choice for you and your family.
Many factors determine the premium of a homeowner’s policy and if that premium will increase based on a claim.
Some of those factors are beyond your control – general rate increases, increasing construction costs, and more serious natural disasters. But there is one thing that you may have some control over that could determine whether your homeowner insurance premium will increase if you file a claim, and that is claims history.
Among other things, homeowner insurance policies are rated based on risk. The risk as a homeowner is the likelihood that a claim will be filed. From a rating perspective, if a homeowner has never filed a claim, their risk is low. The homeowner’s insurance company likes that, and this could make a good risk factor. In fact, the insurance company may even give a small discount on the policy for never having filed a homeowner’s claim.
On the other hand, if a homeowner has filed several claims over a few years or has a claims history involving water damage, dog bites, or personal liability claims, the carrier may decide to increase the premium. These types of claims make for a larger risk as far as the insurance company thinks, and they may raise the home insurance premium, or they may not offer to renew the policy come renewal time.
Keep in mind, one claim may not cause an increase in a home insurance premium, especially if the claim is due to a weather event, but recurring or frequent claims could increase your homeowner’s premium. Also, claims and claims inquiries are compiled in a database of underwriting information, and this information is shared amongst insurers.
This doesn’t mean that you shouldn’t file a claim if you need to. It only means that an informed homeowner can keep from filing unnecessary or relatively small claims to keep their home insurance premium as low as possible.
It is not unusual for a homeowner to find themselves in a situation where they didn’t file a claim, but their homeowner’s premium still increased. The most common reason for this type of situation is a general rate increase.
On an annual basis, insurance companies can request rate increases from the state. All insurance companies must file their rates with the state, and rate increases must be approved by the state. When these types of increases are approved and applied to home insurance premiums, it is referred to as a general rate increase.
For example, one of Florida’s largest homeowner insurance companies has received approval from the state regulators to increase its rates by an average 9.9% for most single-family homeowners in Broward, Palm Beach, and Miami-Dade counties. This means homeowners in South Florida will likely see an increase in home insurance premiums whether they file a claim or not.
Other than claims history, the most basic rating factors for a home is the construction, how it is occupied (owner or tenant), the protection (things like smoke detectors, burglar alarms, impact-resistant windows), and the exposure to the elements.
It is possible. Especially if you have filed other claims or your claim relates to personal liability or water damage.
If you have damage to your home that is beyond your ability to repair – call your insurer. If you have minor damage and are not sure if you need to use the policy or if the policy would even cover the damage, you may want to do a little research or talk to Bulldog Adjusters before filing a claim that could raise your home insurance premium.
Read your policy – Before you make a claim on your homeowner’s insurance policy, it is best to learn a little about your policy. It will help you decide whether you should file the claim and risk the chance of your premium increasing. Here are some things to look for or to ask Bulldog Adjusters about:
Property covered – Some types of property are not covered by your homeowner’s policy, no matter what happens to them. Special items like fine art, antiques, and jewelry are not usually covered unless there is a special endorsement. There is usually no coverage for stolen cash.
Cause of Loss – What happened to the item? Think about what caused the damage. On a homeowner’s policy, this is a “Cause of Loss” Most homeowner’s policies will cover only specific causes of loss. Other policies will have exclusions.
Maintenance – The best way to keep your home insurance premium from increasing is not to file unnecessary claims. And the best way to not have unnecessary claims is with good home maintenance and a public adjuster on your side.
Get familiar with your home and perform routine inspections of your roof, windows, air conditioner, pipes, and plumbing. The earlier you detect a problem, the less damage it will cause and the less likely you will be to have to file a claim.
The best way for a homeowner to avoid a rate increase because of claims history is to hire a public adjuster who can gauge whether or not you have a claim. As a homeowner, also be diligent in performing home inspection and maintenance.
In the event that you file a claim and your insurance company offers a lowballed settlement or denies your claim, that’s when Bulldog Adjusters’ expert negotiators can work their magic to ensure you get the results that you deserve.
Even if your claim is denied or low-balled, our team will keep fighting to obtain the settlement you deserve, and that will help you bring your home back to pre-loss conditions. Bulldog Adjusters know how to handle tough situations. As disaster experts, we stay on top of the latest in property insurance laws, so YOU don’t have to worry. Whether you’re dealing with a five-alarm fire, a pipe break, or damage from a natural disaster such as a hurricane, trust Bulldog to have your back!
When you file property damage claim with us, you’ll always get our full attention to ensure that you’ll get the largest possible settlement in the end!
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