Henrich Insurance Group

Insurance Claim FormYou want to protect your home at all costs. It's your safe haven and a valuable financial asset.

If your home sustains damage from storms or other incidents, you might get in touch with your home insurance company to file a claim. This claim might help pay for some or all the damages to the home.

After you file the claim, you might see your home insurance costs increase. Many people wonder why this happens, as their goal is to save money on their insurance.

Here's why rates go up after you file a claim.

Rates Are Related to Risk

If you file a home insurance claim, there's a good chance that your home has suffered damage. To insurance companies, damages represent risks to the property. 

By nature, if you're filing a claim for damage, there's a chance that damage might someday pop up again. Lightning might not strike twice, but fires, tornadoes and hailstorms sure can.

Furthermore, repairs to damages, no matter how strong, are never the same as the original work on the home. Thus, insurance companies are assuming a higher risk when they continue to cover you following an incident.

Because of this higher risk, insurance companies must devote greater financial obligations toward you. To still offer you full protection, the insurance company might have to charge you more.

What if the Damage Wasn't My Fault?

Many people wonder what will happen to their home insurance rates if an accident isn't their fault. Severe weather damages, for example, generally don't occur because of an owner's actions.

Sometimes, insurance companies offer forgiveness for the claim and do not increase rates. This is highly likely in the cases of first-time claims.

However, if your home frequently suffers damage, you might face increased rates. Frequent damages indicate that your home is in an extremely risky position. Steps to mitigate rate increases might include repairing your home using reinforcements to reduce the chances of future damages. You should take steps after filing a claim to ensure that it you won't have to file one again. Your insurance agency may be able to offer advice on how to make repairs to prevent further damage.

Additionally, failing to take proper care of your home — both before and after damages — could be deemed as negligence. Negligence is sometimes grounds for your insurance company to deny a damage claim. It often demonstrates that you haven't taken steps to cut down the chances of damages impacting your home.

Negligent homeowners demonstrate a level of irresponsibility towards their insurance carriers. Therefore, not only might you lose a payout, you could also see rate increases.

How your insurance company handles rate increases depends on the carrier itself. Some carriers might practice more leniency when it comes to rate increases, while others might not.

Talk to your insurance agent. They can help you work with an insurance company that can best meet your specific needs.

HIG – Henrich Insurance Group can help you get coverage that you can afford. Call us at (713) 349-0400 for a free Houston home insurance quote.
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