Things to Consider When Submitting a Property Damage Claim

If your home is damaged and you have homeowners’ insurance, this can provide you with a lot of peace of mind. No one wants to deal with a situation where a tree falls on your house or your basement floods but having insurance can protect your investment and save you from having to pay costly repair charges.

However, there are things that you will want to be aware of if you are considering a property damage claim. The more information you have about the process, the more informed your decision will be, and that means you’ll be able to make a better decision.

Homeowners Insurance Premiums May Increase Each Time You Make a Claim

In general, your home insurance premiums may go up if you make a claim. However, this depends on many factors, including the type of insurance you have, the type of claim you’re filing, the extent of the damage, and more. Your personal claims history matters as well.

In addition, some insurers give lower rates to customers who have not made recent claims. If you’ve been receiving these benefits, and then you make a claim, you’ll lose this benefit for a while and your premiums may increase.

How Much More Depends on Several Factors

Whether your premiums increase – and how much they might increase – depends on many factors. One is location. If you file a property damage claim relating to severe weather, and you live in an area where severe weather is more common, this may increase your premiums.

The same is true if you live in a high-crime area and file a crime related to crime.

The frequency of your claims matters as well. If you have filed frequent claims for similar issues, the insurance company could consider this to be a risk factor for your property and increase your premiums.

The Severity of Each Claim Matters

The severity of the claims you file matters as well. For instance, a claim relating to a burst pipe or a leaking water heater would generally be considered less severe than those relating to weather damage or fire. However, this depends on the amount of damage caused as well.

Some Claims Raise Premiums Higher Than Others

One of the most common questions we hear after “will my insurance rate go up after submitting a property damage claim?” is “how much will it increase?” This depends on many factors, including the type of the claim.

Typically, a liability claim (one where you could potentially face a lawsuit) will increase your premiums more than a damage claim.

Insurers Check your Claims History

When determining premiums, insurance companies look at your claims history. If you’ve made several claims in recent years (especially several claims for similar issues), this could increase your premium.

However, it’s important to know that claims don’t stay on your record forever. In general, depending on your insurance provider and the policy, they usually remain for between three and seven years. After this time, your premium is likely to go down. However, it might not return to the original rate.

When to Pay for a Claim Out of Pocket

In some cases, it makes more sense to pay for repairs yourself rather than filing a claim. For instance, if there was a small amount of damage to your home and it will cost about $700 to fix, you may not want to make a claim, especially if you have a $500 deductible on your policy. You’ll end up paying almost the same out of pocket and your premiums might increase if you make a claim.

Generally, insurance claims should be used in situations where there is a large loss that you cannot pay on your own.

At TSO Adjustment Services, we use our knowledge and expertise to handle all sorts of property damage claims. We’ll estimate the damage, prepare and submit a claim, and negotiate a settlement with the insurance company. For more information, please book an appointment online or call us at 215-886-7440 today!