Some Types of Insurance Claims Are More Likely to Raise Your Rates

2/14/2020 (Permalink)

Flooded room due to water loss in Apex, NC

When you have damage to your property in Apex, NC, you naturally should consider making a homeowner’s insurance claim. However, before you do, it’s best to evaluate if the claim will raise your premiums more than the amount you receive for repairs.
This can be a little tricky since insurance companies don’t typically share their algorithms for rate increases. Yet you can make an educated guess based on available information. For instance, four items stand out as most likely to raise rates:

• Dog bites
  
• Slip and fall injury claims
  
• Water damage
  
• Mold build-up
  
  

Dog Bites Are a Big Concern for Insurance Companies

Insurance adjusters hate to see dog bite claims. They represent about one-third of payouts overall – around $500 million each year! Once a dog is a known danger, it’s a big red flag. You should take all possible precautions to prevent dogs from biting humans.

Water Intrusion Can Indicate Poor Maintenance of a Home

Water damage is also something insurance companies look for when considering raising your rates. Homeowners are expected to maintain their plumbing, and leaking pipes can indicate a home that isn’t kept in good condition. Mold damage from leaky plumbing or a roof also makes insurance companies nervous.
A home flood may be indicative of a long-standing problem. If it turns out that you are in an area prone to flooding, your rates can be dramatically affected. Most flood damage isn’t included in basic homeowner's insurance. Water damage from an isolated storm, however, may not be a problem.

Slip and Fall Claims Are Also Common

The National Safety Council states that falling causes about one-third of all non-fatal injuries. Studies show that falls are also one of the most common claims on homeowner's insurance, and adjusters look for patterns, especially if you’ve had a second claim for a fall.
If you are unsure about whether or not it’s in your interest to make an insurance claim for damage to your home, your best bet is to talk with your local experienced restoration company. They can give advice about repair costs and may be familiar with the causes of premium increases in Apex, NC.