How a Claim Can Impact Your Annual Premium

Something happens to your home, maybe a tree falls onto the garage in a storm or a window breaks. If you can fix it yourself, would you rather do so or claim on your insurance and risk raising your premium? According to, depending on where you live, claiming on your insurance can raise your premium by about 20%. In some states, claiming can raise your costs by double digits, for example in Minnesota and Connecticut. It’s not all doom and gloom. In Texas, insurers aren’t allowed to raise your premium after your first claim.

Why is it so state dependent?

Apparently it all comes down to the weather! Well, maybe not everything, but the weather plays a big component. States where the increase is high usually have low claim rates to begin with, whereas in places like Florida, prone to hurricanes and tornadoes, the policies are usually quite expensive, then only bump a little bit.

So how do you know when to claim?

Sometimes it is in your best interest to file a claim. If the damage is catastrophic and will cost more than your deductible, it makes sense to file a claim. Sometimes it isn’t for example if it will cost you more than if you choose to fix it yourself. Make sure you look at both scenarios and compare apples to apples.

If you’re still worrying about what you should and shouldn’t claim, give us a call. We’ll help you through the process.