Barclays Public Adjusters

Does Homeowner’s Insurance go up After a Claim?

The cost of homeowner’s insurance will typically increase when it’s time for renewal after you’ve filed a claim. Your insurer will view you as more likely to file a claim than other clients. That constitutes a risk in the view of insurers, with the potential that the insurance company will have to make a payout.

It doesn’t matter what type of claim is made and increases will often occur each time you make a claim. The question as a homeowner is how much of an increase will be experienced. The amount will depend on the insurer, but will typically range from 7 to 10 percent.

Claims Aren’t Always Necessary

Before filing a claim with the insurance company, it’s a good idea to get an estimate from at least two different contractors. If your insurance deductible is $500 and the damage will cost $300 to repair, there’s no reason to file a claim. If the repair costs are only a couple hundred dollars more than their deductible, some people choose not to file a claim and pay for the costs out of pocket – if they have the money.

How Client Risk is Calculated

Insurers spend a lot of time and money locating ways in which they can minimize their costs, improve profitability, and identifying individuals that are likely to file a claim. Homeowner’s insurance rates are calculated on risk to the insurer. They include factors such as the amount of the claim, the type of claim, and your claim history. A list of all your claims will typically stay on your insurance record for 5 years.

The Methodology of Risk Assessment

Insurance companies use an extensive variety of data to assign a risk factor to a client. One of the criteria is your credit score. The lower your credit score, the more expensive your insurance. Another factor is the zip code in which you live, along with the age of the home. Other criteria used include:

  • Your deductible
  • Cost of replacement
  • Roof condition
  • Any remodeling or renovations performed
  • Installed swimming pool
  • Safety and security measures installed

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