Will Filing a Claim Raise My Insurance Rates?

1/12/2021 (Permalink)

How many times have you filed an insurance claim?

You come home from work to find water everywhere because one of your pipes burst while you were gone. Obviously, you're going to call a plumber or water damage specialist in Indian Hill, OH, right away, but should you also file an insurance claim? If you're concerned about making that call might cause your rates to go up, here are the factors you should consider:

The Cause of Your Water Damage and Who's at Fault

Floods — water that flows over the ground into your house — are not covered by homeowner's insurance unless you have a specific policy for it. Homeowner's will cover water damage from rain if it came through a damaged roof or window, or damage from toilets, sinks, showers, burst pipes, or lawn sprinklers, provided the cause isn't due to neglect or fault of your own.

The Size of Your Deductible
Will the cost of repairing the damage exceed your deductible? If not, is it worth filing a claim?

How Many Times You've Filed
If this is not your first insurance claim, how many times have you filed? The number of claims will most certainly impact your rates.

Your Credit Rating
Surprisingly, a low credit score can cause your insurance rates to go up, even if your home flood was out of your control.

The Type of Damage
Unfortunately, water damage is among the issues that insurance companies see as a red flag, and are therefore more likely to raise rates.

The Extent of Damage
If you are at all able to afford the repairs and restoration outright, it is best to handle things on your own. On the other hand, if the damage is catastrophic, you shouldn't think twice about making a claim.
Though dealing with water damage can be a big headache, dealing with your insurance company doesn't have to be. Understanding your policy and the factors that contribute to rate hikes before you make the call can help you make the right decision about whether to file an insurance claim.