Home insurance quiz: How claims can affect premiums

Understanding how claims affect home insurance premiums

Take this quiz to find out how well you understand how certain claims affect homeowners insurance premiums. Answer “yes” if the insurance company will raise rates as a result of a claim for a covered loss, and “no” if they (probably) won’t.

Questions:

Will an insurance company typically raise rates if you submit a claim for:

1. Hail damaged the vinyl siding of your home.
2. My dog bit the neighbor. Suit pending.
3. A windstorm blew a tree over on the house, for the 3rd time in two years.

Answers:

1. No, as long as you have not made many claims in the recent past (generally, 3 years). If your premiums do increase the following year, the rates are probably based on area factors (recent weather patterns, local crime) than that one claim you filed.

2. Yes. Biting dogs can be a huge liability risk. The company may even opt to drop coverage rather than raise your premiums.

3. Yes. Frequent small claims can adversely affect your premiums, and if you have dead/diseased trees in danger of toppling over, insurers may view it as owner neglect.

The answers above are good general rules to follow, but answers may vary by insurance company and/or policy. It’s best to talk to an agent about your individual policy and the company’s specific practices well before the need arises to file a claim.