Will my insurance rates go up if…?

A common question we are asked is “Will my homeowner’s insurance premium go up if I file a claim?”. The simple quick answer is no. You could potentially lose your loss-free credit if you have one on your policy. That would cause your premium to go up the following policy term. Homeowner’s insurance rates are not determined by loss history. Your homeowner’s insurance rates are based on a multitude of factors including the location of your home, the size, the age, your insurance score (insurance company lingo for a credit score) to mention a few.  

Insurance companies are more concerned with frequency rather than a single loss. If you file 3 small claims in a year more than likely you will be looking for a new company when your policy expires. So, if you have a loss with significant damage, the right thing to do is file the claim. After all, you’re paying a premium every year, why not use your insurance for what it’s designed to do?

The above is meant as general information and as general policy descriptions to help you understand the different types of coverages available to you. Always consult your policy for actual coverages and exclusions.

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