3 Reasons Why Filing an Insurance Claim Can Raise Your Premium Rate

5/27/2022 (Permalink)

If you are not cautious, filing a home insurance claim can have an impact on your premium rates.

Three Reasons Why Filing An Insurance Claim May Increase Your Premium Rate

Homeowners in Bagdad, AZ, are searching for ways to keep their home insurance from reaching unreasonable premium rates. Filing a claim, regardless of fault, can make an impact on your rates. Claims for emergency repairs can drastically hike up your premium prices, which may include:

• Water damage repair from a home flood
  
• Fire damage repair from a dryer fire
• Mold remediation for homes in humid climates

Here are three reasons filing an insurance claim can change your premium rate.

1. Your Claim Was Ratable

Some insurance companies categorize between non-ratable and ratable claim events. A non-ratable claim includes events that are not preventable, such as roof leakage from wind damage in the event of inclement weather. Ratable claims include events that are preventable, such as liability, medical, and fire damage claims due to dirty vents in heating, ventilation, and air conditioning systems.

2. You Filed Multiple Claims in a Short Period of Time

An insurance company will likely not hike up your premium for one claim. In the case of multiple claims, insurance companies may remove discounts, such as claim-free discounts, and charge an additional premium. The amount of this increase will range depending on your insurance company.

3. You Did Not Provide the Proper Documentation for Your Insurance Claim

After your insurance company processes your claim, they will want proper documentation on file to prove the contractor completed repairs in a reasonable period of time. If you do not provide this documentation, your insurance company may send a notice of non-renewal. If you receive this notice, you will need to search for another company once your coverage has ended.

Filing a home insurance claim can affect your premium rates if you are not cautious. If you are processing a non-ratable claim for damage from inclement weather, it is important to hire a trusted storm cleanup company that will complete repairs in a timely manner. If you can no longer afford your premium, you can always search for other insurance companies that will meet your home insurance needs.