While homeowners insurance is designed to help get you back on your feet in case of the unexpected, your insurance premiums can increase as much as 10% after a single claim.
To know when filing a claim is worth it and when to just cover the expenses out of pocket, you'll want to consider the claim type, amount, and your personal loss history. If the damage estimate isn't much higher than your policy deductible, making a claim may not be worth the potential increase in premiums.
How much does your homeowners insurance go up after a claim?
On average, home insurance premiums increase roughly 7% to 10% after a claim, according to Fabio Faschi, former Property and Casualty Lead at Policygenius.
However, this amount could be significantly more or less depending on what kind of claim you're making and how many claims are already on your record.
Average cost of home insurance by claims frequency
Here's the average annual cost of home insurance in the U.S. for a homeowner with zero, one, three, and five claims on their record.
Claims history | Average annual cost |
|---|---|
No claims | $1,908 |
1 claim | $2,101 |
3 claims | $2,916 |
5 claims | $4,407 |
And here's a look at the cost of homeowners insurance in the U.S. for various claim frequencies from several popular insurance providers.
Company | No claims | 1 claim | 3 claims | 5 claims |
|---|---|---|---|---|
$1,930 | $2,147 | $4,798 | $10,962 | |
$1,266 | $1,452 | $1,959 | $2,188 | |
$1,717 | $1,930 | $2,904 | $4,446 | |
$1,799 | $1,984 | $2,899 | $6,677 | |
$1,884 | $2,040 | $2,665 | $3,005 | |
$1,465 | $1,534 | $2,440 | $3,919 | |
$1,969 | $2,157 | $3,852 | $9,698 | |
$1,915 | $2,250 | $3,878 | $6,598 | |
$1,181 | $1,551 | $2,542 | $4,886 | |
$1,547 | $1,634 | $2,174 | $2,842 |
Methodology: Average annual rates for both tables are based on our analysis of home insurance premiums provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C. for policyholders with different claims histories.
Which types of claims make home insurance more expensive?
Insurance companies have found that certain categories of damage or loss, like a home break-in or a pool-related injury, have a higher probability of happening again than others. This is generally because of the underlying risk associated with these types of losses.
In the case of a home burglary, your insurer may view a strong correlation between an existing risk, like a history of claims made by you or other homes in your neighborhood, and the fact that your home was broken into. In the case of a pool injury sustained by a guest, you may be considered negligent and a risk of future liability claims if you failed to lock the gate leading to the pool.
While all of this will ultimately depend on the circumstances of your specific loss and the outcome of the claim investigation, insurers will often impose higher rate hikes than normal if you make one of these claims.
While insurers can increase your rates for filing even one of these claims, they can also choose to nonrenew your policy if you file multiple claims within a three or five-year period.
When shouldn't you file a home insurance claim?
In the event your house is damaged or you're the victim of theft, you'll want to check your policy deductible before making a claim. A deductible is the amount you're responsible for paying on each claim before insurance kicks in to cover the rest.
If your deductible is higher than the amount of property that you estimate was damaged or stolen, you won't be able to file a claim. If there isn't a significant difference between the loss amount and your deductible, it may not be worth making a claim.
For example, say $1,500 worth of stuff is stolen from your house. If your policy deductible is $500, it may be worth it to file a claim since you'll be reimbursed for an amount that's twice your deductible, even if doing so causes your premiums to go up slightly.
However, if you make a claim for the same loss with a $1,000 deductible, you'll only get $500 from your insurance company. Still a decent portion of the claim, but small enough where you'll want to consider the cost of covering the extra $500 yourself to avoid a potential premium increase.
In both scenarios, whether or not you should file a claim will depend on your personal financial situation and level of urgency in replacing the stolen property.
Factors that influence home insurance rate increases after filing a claim
There are several factors that influence how much your home insurance rates go up after a claim.
Dollar amount. High dollar amount claims can cause a larger increase in your insurance rates than smaller claims.
Loss history. Homeowners who file multiple claims will pay higher rates than homeowners with no claims on their record.
Type of claim. Different types of claims may impact your rates in different ways. A claim for something like a natural disaster will be viewed differently than a burglary claim.
State laws. Insurance laws and regulations vary by state, which means claims may impact your insurance rates differently depending on where you live.
Individual policies. Every insurance company has its own rules and standards, which means each one will approach rate increases differently. Some companies may allow their customers to file a certain number of claims (or claims up to a certain dollar amount) without a rate increase, while other companies may raise your rates because of a single claim.
How long do homeowners insurance claims stay on your record?
Depending on the insurance company, homeowners insurance claims will stay on your record anywhere from five to seven years. But some companies like Swyfft stop considering prior insurance claims after three years.
Most companies can access your claims history through national databases that track claims up to a certain number of years. The Comprehensive Loss Underwriting Exchange (CLUE) is the most common customer claims record database — generally claims stay on your CLUE report for up to five years. Companies may increase your rates or deny you coverage based on information they find in your CLUE report.
Are there times when insurers aren’t allowed to raise your rates after a claim?
Insurance companies are regulated on the state level, so it varies depending on where you live.
Some states don’t allow rate increases or nonrenewal after:
Basic claim inquiries
Zero-dollar claims — claims that didn’t result in a reimbursement
Single claims
Weather or natural disaster claims
For a complete list of homeowners insurance customer protections, contact your state’s Department of Insurance.
4 ways to keep your home insurance rates from going up
Here are a few tips to prevent your homeowners insurance company from jacking up your rates after a claim:
Only file catastrophe claims or those you can’t afford to pay out of pocket.
Try not to file more than one claim within three to five years.
Check your CLUE report to learn about your home’s claims history.
Avoid filing claims that are less than twice your insurance deductible.
If your rates recently went up after a claim, consider shopping around and getting home insurance quotes with Policygenius to see if you can find a cheaper rate.
