Will Filing A Claim Make My Insurance Rate Go Up?

We are going to discuss some common myths about the insurance industry and provide some tips on filing an insurance claim.

When dealing with storm damage on your home the cost of the damages can add up quick. This is why we have homeowners insurance. It is there to cover you when sudden damages occur that would otherwise be difficult to cover on your own. Unfortunately, due to many common misconceptions, people tend to avoid using their insurance when it comes to damages on their home.

Its your insurance, use it when you need it.

If your home has suffered damages greater than the cost of the deductible, in this case your roof is definitely more, you should file a claim as soon as you can. We recommend you do it is as soon as possible due to the fact that a lot of claims get denied because the damage occurred too long ago. It is also recommended that you document as much of the damage as possible with photos. This will provide the insurers with evidence that will strengthen your claim.

Filing a claim won’t make your rates go up.

Usually the first thing a homeowner is worried about, when dealing with insurance and claims, is if their rates will go up. Many people tend to think that homeowners insurance acts like car insurance in the sense that if they file a claim their rates go up directly as a result. This is false.

Your premium is actually based on a number of factors such as geographical location, crime rate in the area, local climate, etc.

If your home is in need of repair your rates may even go up from it.

Damages that increase the likelihood of a loss being claimed on the property raise your rates. Damages that may seem insignificant at the start can be become a major problem. For example a cracked foundation or a leaky roof. These things may seem small but over time can become some of the most costly repairs on you home.

A leaky roof will lead to water damage and rotted framing if left without repair. These types of damages are considered heavily when insuring a home thus increasing your rates.

Your rates may go up even if you don’t file a claim.

“How?” you might ask. Well when a storm impacts an area it causes widespread damage and causes a large spike in claims. This large spike in claims causes the area affected to be labeled as a high risk area and will cause insurance companies to raise premiums regardless of whether you filed a claim or not.

This is why we always recommend that if you see your neighbors getting there roof changed recently after a storm then it doesn’t hurt to have a roof inspection. We will let you know if you’re roof has sufficient damage for a claim.

Filing a claim shouldn’t be something a homeowner is afraid of. You are paying for it a reason so why not use it to your advantage and get your roof replacement covered.

For more info on the process of filing a claim you can read our blog post here.