Why Insurance Premiums Go Up and When You Should File a Claim

Why Insurance Premiums Go Up and When You Should File a Claim

Why Insurance Premiums Go Up and When You Should File a Claim

Homeowners' insurance premiums depend on different characteristics than car insurance premiums. Unfortunately, this distinction makes it tough to decide what will or won't alter your insurance premiums due to the crowd of elements considered when figuring your risk score. For example, homeowners' insurance fees and perils depend on community trends, building features, location, etc.

While reporting a claim will not raise your current premium, the number of claims you make against your policy will influence your peril score. Insurers scrutinize how frequently you make claims to determine your risk factor, or peril score, associated with covering you. Five Star Claims Adjusting is a dependable company for property claims in South Florida. We are here to assist you in navigating the complexities of your policy and manage all of the particulars for you. So, call us today for additional details!

Your peril score can differ significantly according to the type of impairment you claim and where you live. For example, hail damage claims in a hail-prone zone can increase your premium if many other property owners within your area repeatedly make claims. On the other hand, a leaky pipe or water heater impairment is negligibly likely to increase your costs unless you have made repeated claims for them.

Many individuals have thoughts on a safe frequency for filing home insurance claims, but one to two claims every decade should not increase your insurance costs. It can be valuable to preserve homeowners' claims for more significant, costly incidents and handle lower-cost deterioration independently to evade paying deductibles and encountering potential premium increases.

What are frequent claim risks?

The effects of routine claims can differ but usually include:

• Revocation of your policy.

• Increased insurance rates.

• Problems locating a new insurer.

When you should file a claim

When determining whether to file a homeowners' claim, there are numerous elements to ponder. Some of these elements include:

• Understanding your policy and if it would cover a claim.

It's critical to examine coverage limitations and exclusions when considering filing your claim.

• Is the impairment you consider declaring the outcome of cumulative damage or absence of maintenance?

These problems are doubtful to have coverage under your homeowners' policy.

• Is the impairment vastly more costly than your insurance deductible?

If the damage you experience is not vastly more remarkable than your deductible, filing an insurance claim might not be worth the gamble. Homeowners' claims are designed to help with substantial losses you cannot afford, so it's likely not okay to claim minor losses.

• How frequently have you reported damage in the past?

As noted before, you can make one or two claims every decade without increasing your rate.

• Was someone injured?

If somebody got injured, they could sue you months or years in the future. Not reporting a claim means that your insurer cannot help with legal representation or help cover their compensation.

Claims security policies

In many cases, you can opt for a homeowners' insurance claim protection option with your insurance company. This type of approach helps mitigate the chance of reporting a claim and guarantees unchanging premiums if you must make one. However, claims protection policies usually command an additional 30 to 50 bucks annually on top of your standard premium.

Five Star Claims Adjusting is here to assist you in better understanding your policy and managing property claims in South Florida for you. Contact us today for more information on how we can make the process easier.

We serve all of Florida

We represent you, not the insurance company.

South Florida Office

1640 West Oakland Park Blvd.,
Suite 202,
Oakland Park, FL 33311

(954) 302-1106

Five Star Claims Adjusting™
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