Whether homeowners’ insurance will rise after claims rely on many variables. Insurance companies have set their own policies for increased premiums within state law parameters. If you file a claim after your home has been damaged or destroyed, you may often trigger a policy extra fee that increases your premium, often several years, to increase your premium. Let me explain why this is true and how long a homeowner’s insurance claim will remain on your record.
How much will your homeowner’s insurance increase after a claim?
How much insurance will increase after the claims depend on a few things. The severity of a claim is one of the most important. Generally, the higher your claim, the more your insurance company can raise your premiums.
Liability claims in particular tend to change your premiums the most. Liability claims can be quickly and expensive as they may include attorneys’ fees, settlements and medical costs.
Anyway, not all household claims are measured equally. The amount of insurance your home will rise after the claims depend on, or
- History of your personal claims: Homeowners with large billing history are considered at risk and may be charged higher fees.
- Claim size: A $30,000 billing can affect fees over $5,000.
- Types of claims: Different types of claims indicate different types of risk. For example, a fire claim can be seen in a different way by an insurance company than a home break-in.
- Your condition: Some states regulate how filing a claim affects insurance contracts. Remember, don’t forget that home insurance is managed by the state (non-federal) government.
- Your insurance company: Each different insurance company has its own way of calculating your rate. For one insurance company, certain claims may not be that big of a deal. But for another, it could significantly increase the premium.
- Details of your policy: Some home insurance offers add-ons such as claims allowance and rate locking. This will allow you to maintain your premium level after submitting your claim.
Sometimes, your home’s premiums can go up because many people in your area did it, not because you filed a claim. For example, if multiple homeowners on the street file claim to break into a home, it can let the insurance company know that your street is a high-risk location. It helps you think of home insurance premiums as a measure of risk. It’s risky and more expensive.
The average cost of home insurance for non-claimed homeowners is $2,267 for insurance with a $300,000 housing limit. The table below shows how homeowners’ insurance increases after a claim, based on an analysis of average fees from Quadrant Information Services.
| Types of claims | Amount of bill paid* | Average annual rate after billing* | Percent increase |
|---|---|---|---|
| wind | $12,000 | $2,391 | 5% |
| responsibility | $31,000 | $2,398 | 6% |
| theft | $5,000 | $2,414 | 6% |
| fire | $80,000 | $2,397 | 6% |
*Average fees based on claims filed with home insurance are $300,000 in residential coverage.
Why do premiums go up after submitting a claim?
In home insurance, the past is often used to determine the future. This means that if you filed a claim previously, your insurance company could see you as likely you would do so again. Some claims cost a significant amount of money to the insurance company. In order to recover your financial loss, your insurance company may charge you a higher fee. This is especially true in cases of dog bites, floods, theft, and other claims that are likely to occur again.
As mentioned above, whether or not premiums increase after a claim is a situation. Certain types of claims affect premiums more than other claims. If you fall into one of the following categories, you should expect a homeowner’s insurance to rise after your claim.
- You live in an area with bad weather
- Your home is located in a high crime area
- You have filed a liability claim in the past
- You own a home with a history of claims
- You will file multiple claims over several years
learn more: Factors that affect the cost of homeowner insurance
How much does a claim affect your home insurance fees?
The claim will not bother you forever. Homeowners’ claims remain on record vary, but typically lasts within seven years. After that, the rate should start to level out. To see if your claim is on record, you can request a comprehensive underwriting exchange (Clue) report. Clues reports detail previous claims filed on a particular property and are used by many insurance companies to set fees. If there is an error in the cues report of your home, it can make your policy more expensive, so you can pay to check yours.
Is there any case that the company is not allowed to raise fees after billing?
There are many situations where property insurance companies can raise your fees after a claim. However, there are certain circumstances in which the insurance company is not allowed to do so. Because insurance companies are regulated at the state level, consumer protection laws vary depending on your location.
Some of the circumstances in which insurance companies could prohibit raising premiums are:
- When the homeowner asks about filing a claim, but does not submit it.
- When the homeowner files a claim that does not bring payment (rejected claim).
- When a homeowner submits a single claim.
- When the homeowner files a claim for natural disaster damage.
As a homeowner, it’s important to understand your state’s consumer protection laws. You can contact your state’s Department of Insurance (or equivalent governing bodies) to learn more about the restrictions you live in. You can also contact your insurance company to see if you are exempt from changing your rates.
When is it worth filing a home insurance claim?
Just because your premiums could go up doesn’t mean you should never file a claim. Knowing when it will be in your best interest is more of a problem. You may be in charge of additional charges for a while, as it may take some time for your home’s premiums to return to the level they were before pre-claimed. If you are unsure whether to file a request, you may want to ask yourself the following:
- Is the damage I’m claiming higher than my deduction? Your deduction is the amount you will be financially liable after the covered loss. If your home repair costs are deductible or deductible, or deductible, it may not be worth it to file a claim and face a premium surcharge.
- Can I afford repairs without insurance? Of course, for a massive repair, you probably want to rely on your policy rather than immerse yourself in your pocket. But for small things like some broken windows, you might consider paying from your pocket.
- Does what I’m arguing have long-term benefits or impacts? Something like a complete roof replacement or a brand new kitchen could help you sell your home later, so it may make sense to file a claim as long as the long-term profits could ultimately offset costs.
FAQ
Methodology
Bankrate utilizes Quadrant Information Services to analyze all ZIP codes and carrier fees for April 2025, 50 and Washington states, and DC citation fees for basic profiles are based on married men and women homeowners with clean billing history, good credits and the following coverage restrictions:
- Coverage A, Residence: $300,000
- Coverage B, other structures: $30,000
- Coverage C, Personal Property: $150,000
- Coverage D, Loss of Use: $60,000
- Compensation E, liability: $500,000
- Compensation F, Medical Costs: $1,000
Homeowners also have a $1,000 deduction amount, a $500 deductible deduction amount, and a 2% hurricane deduction (or the closest deductible amount available).
These are sample rates and should be used for comparison purposes only. Your quote is different.
If specified, the base profile has been modified with the following homeowner characteristics:
