Every time you file a home insurance claim, your premiums will go up. However, certain claims will result in higher increases than others. But which claim events are the most costly? Watch out for these expensive homeowners insurance claims.
How do claims affect home insurance rates?
If you have a history of home insurance claims, then home insurers will automatically assume that you are more likely to file a claim in the future. To offset the potential claim costs that they will have to pay, the insurer will charge you higher premiums. When calculating your rates, home insurers will look at your claims history for two main variables, the frequency, and type of claims that you file. Here is a closer look at the most expensive types of homeowners insurance claims.
There are many perils that can result in property damage. Oftentimes, these types of claims are very expensive. For instance, fire damage claims are the most expensive, resulting in an average premium increase of $273. Water damage claims are also very costly, increasing premiums by an average of $228. Finally, weather damage claims are also quite expensive and result in an average rate increase of about $107.
Personal liability claims will also cause your insurance premiums to increase significantly. For instance, a single liability claim will result in an average premium increase of about $260. Personal injury or medical claims are also pretty expensive, with a single claim resulting in an average premium increase of about $76.
Finally, filing a theft claim will cause your homeowners insurance rates to increase considerably. A single theft claim will result in an average premium increase of approximately $253.
These are the most expensive homeowners insurance claims. Do you have more questions about your home coverage? If so, then contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers, including: Kemper, State Auto, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance.