Many people believe that having one claim filed with their homeowner’s insurance will cause their rate to go up. Think about auto insurance, for instance, if you file a claim after a car accident, your premium might increase. Thankfully, homeowner’s insurance does not act like auto insurance. Filing a single claim will NOT cause your homeowner’s premium to increase.
Your homeowner’s insurance premium is determined on many factors, such as:
- Geographical location of the home
- Age and construction of the home
- The number of disasters the area has suffered in the past few years, such as tornadoes and extreme storms
- Potential risks in the area, such as burglaries or theft
- Amount of coverage
- History of filing multiple claims
- Poor credit history
If you have significant damage to your home, the right thing to do is file a claim. After all, you are paying a premium yearly, why not use your insurance for what it is designed to do?
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