Any morning with your coffee, you can hear an attorney or insurance company talking about an auto claim or fire claim.
Yet, did you know that you should make claims on personal property and your home as rarely as possible?
One of the biggest reasons is shared below. If you live in one of the high increase states, I would be vary wary of making a claim unless the cost benefit of the claim was higher than these rate increases.
Should You Make That Homeowner's
In some states, making a single homeowner's insurance claim can raise your annual insurance premium by more than 20%, according to data collected by
Nationally, making a homeowner's insurance claim leads to an average annual premium increase of 9%.
The states with the highest post-claim increases include:
- Minnesota 21.2%
- Connecticut 20.6%
- Maryland 19.3%
- California 18%
- Oregon 17%
- Arizona 17%
- Alaska 17%
- Texas (insurers are not allowed to boost premiums after the first claim)
- New York 1.1%
- Florida 1.8%
- Vermont 2%
- Massachusetts 2%
- Your insurance is $500 a year.
- You have a $500 deductible.
- Your premium will rise 20% after your first claim.
By contrast, if you file a $6,000 claim, you'd receive $5,500 from your insurance company and your premium would still rise only $100.
Courtesy of Al Clark's HomeAgain Newsletter