Filing 1 Homeowners Insurance Claim Can Jack Your Premium 9 Percent

What's Hot


How to Cut the Cable TV Cord in 2017Family

8 Major Freebies and Discounts You Get With Amazon PrimeSave

Study: People Who Curse Are More HonestFamily

8 Creative Ways to Clear ClutterAround The House

15 Things You Should Always Buy at a Dollar StoreMore

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

5 Reasons to Shop for a Home in DecemberFamily

This Free Software Brings Old Laptops Back to LifeMore

Should You Donate to Wreaths Across America? A Lesson in Charitable GivingAround The House

6 Reasons Why Savers Are Sexier Than SpendersCredit & Debt

Resolutions 2017: Save More Money Using 5 Simple TricksCredit & Debt

10 Free Things That Used to Cost MoneyAround The House

7 New Year’s Resolutions to Make With Your KidsFamily

10 Simple Money Moves to Make Before the New YearFamily

The 3 Golden Rules of Lending to Friends and FamilyBorrow

If you're going to file a claim, it had better be worth it.

Broken window? Damaged gutter? You should think twice (or even three times, depending on where you live) before filing a homeowners claim.

“The average rate hike for a family filing a homeowners claim is about 9 percent, or $150 a year, according to a new study by Insurance Quotes,” says CNBC’s Herb Weisbaum. In some states, premiums can jump double that amount:

  • Minnesota — 21 percent.
  • Connecticut — 21 percent.
  • Maryland — 19 percent.
  • California — 18 percent.
  • Oregon — 17 percent.

In contrast, the study says premiums in Texas, New York, Florida, Vermont and Massachusetts rise 2 percent or less after a single claim. You can find where your state ranks on the list here. The study was based on rates from six large insurers for a single-family residence insured for $144,000 and a claim of up to $30,000.

The differences between premium hikes often come from state law, Weisbaum says. In Texas, for instance, companies can’t boost rates at all for a single claim. Policy prices are also higher in states with routine natural disasters such as hurricanes and flooding.

“If the loss is only $1,000 or $2,000 above your deductible, you may be better off paying for the repairs out-of-pocket,” Michael Barry of the Insurance Information Institute told Weisbaum. And if you want to lower your premium, take the highest deductible you can afford. It means paying more when disaster strikes, but less the rest of the time.

For more advice, check out our story “When to File a Homeowners Insurance Claim.”

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Beware These 10 Common and Costly Tax Mistakes

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,838 more deals!