Raising home insurance claims rates

Submitting a home insurance claim will likely raise your price, but that shouldn’t stop you from making a claim. Other factors such as the amount of the claim and whether you have made claims in the past can determine how much your premium will increase. Attorney Bill Voss explains how an insurance claim can affect your rate and lead to an increase. If a property damage claim is denied, contact an insurance attorney to determine if you can pursue the case.

How does an insurance claim affect your price

According to InsuranceQuotes.com, filing just one insurance claim can increase your premium by 32 percent. This is not always the case and depends on which state you live in in. Texas, insurance law prohibits companies from increasing premiums if filing a claim for the first time does not result in an increase in the rate.

The purpose of insurance companies offering homeowner policies is to protect against damage or loss. Homeowners cannot always recover compensation for their loss, or if they do, the insurance company may increase the rate or cancel an existing policy if they believe the loss is likely to occur again. If the same type of claim is filed more than once within a five-year period, the insurance company has the option not to renew your policy. Some of the types of claims that can lead to an increase or cancellation of the policy are:

  • Water damage
  • Fire
  • theft
  • musty
  • sabotage
  • Weather damage from cold or wind

The price increase depends on a variety of factors, such as the area you live in and the type of claim being made. Some other factors that can affect the rate of your home insurance policy and lead to an increase:

  • Your age of residence
  • High-risk items such as wood-burning stoves or stoves, swimming pools, etc.
  • Owning certain breeds of dogs
  • Living in an area prone to natural disasters or extreme weather conditions
  • Increase construction costs or home value in your area
  • Balance level
  • Previous claims on your property, including those from the previous owner

Keep your rate low

After you file a claim, your price should drop within a few years. Some claims may not cause the price to increase, and the policy may remain unchanged. Ask your insurance agent if you’re not sure if a claim will raise your rate. They must be able to determine whether or not a claim is subject to a rate increase.

There are several ways to keep the cost of home insurance low, such as:

  • Avoid making small claims
  • If the amount of damage is less than the deductible, you may want to pay out of pocket instead of making a claim
  • Avoid filing more than one claim within a five-year period, if possible
  • Increase your deductible for a lower down payment
  • Ask your insurance agent about discounts such as collecting your documents, using automatic payments, or equipping your home with a security system
  • Find better rates and get a quote from another company

How can a lawyer help

If your homeowner’s insurance doesn’t cover damage from a disaster such as a hurricane or fire, or your insurance company rejects your claim, you may still be able to reimburse the damages for your loss. An experienced insurance attorney in Texas can give you legal guidance, protect your legal rights, and help file a lawsuit against the insurance company for not paying the claim or if they refuse to pay the full claim according to your specific policy. An attorney can also do the following to help with your insurance claim:

  • Answer any questions you have about your rights to claim
  • Examine the evidence surrounding your case
  • Determine the value of your claim
  • Negotiate with the insurance company on your behalf
  • File a lawsuit to recover damages

To find out more, contact The Voss Law Firm, PC for a free consultation using our online contact form or by calling our office at 888-614-7730. We are 100% contingency and collect nothing unless we recover on your behalf.

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