The million dollar question that we seem to answer more than any other this time of year is will my rates go up if I file a claim on my Burleson Home Insurance Policy. And my answer is always the same. If I could predict the future of your rates, I wouldn't be working here. I would be buying lottery tickets instead. However, there are some standard expectations that we can work from to help you plan for what comes next. Let's explore the three biggest.
Expectation 1
Assuming you worked with your local independent insurance agent, the claim will actually have a benefit to you and your property. Filing a claim that will not pay out to you due to the damage being less than the deductible is a worst case scenario. But completely avoidable. Since you didn't have that happen, the first expectation is to get the repair work completed on your home. If you do not do this, you will not be able to secure new coverage in the future. Rate change or not, you will be stuck.
Expectation 2
The nature of your claim will have an impact on your future rates. Living in North Texas comes with certain known issues like hail storms. Seems like there is more hail damage to homes here than almost anywhere else. As a result, the insurance companies recognize that your likely to have a claim. If the hail storm is large enough, the companies will declare the damage to be a Catastrophe Event. What that means for you, the homeowner, is that the penalty for a hail claim on that front is fairly minimal. It's just part of living in North Texas. However, if you have a hot water heater that explodes and floods your home it is safe to assume that there will be a surcharge on your premiums in the future. The size of the surcharge will vary by company.
Expectation 3
Multiple claims in a single policy year will often have an adverse effect upon your home insurance premium. It's understood that you may have the catastrophic hail event. It's understood that a water claim may come. But when you begin to pile them up, the home insurance company will then believe that you will have many more. The compounding effect will increase the rates substantially in most cases. We will then be faced with an inability to find you a suitable policy in a cost effective fashion as new companies will block your ability to obtain coverage from them. This becomes a worst case scenario.
So What Can Be Done?
First and foremost, understand that insurance is here to help you avoid financial ruin. Make the claim if it makes sense. Even if it will result in a slightly higher premium down the line. Second, roof claims due to hail can often times actually lower your future premiums because of the current pricing models that incorporate year of roof replacement.
The great thing about working with many different companies as an independent insurance agent, is that Insurance For Texans can find a company and policy that fits with your situation. It will mean that you can find a solution to meet your goals rather than punishing you. Some solutions are more expensive than others, but the ability to craft a solution sometimes makes all the difference in the world. Schedule at time to speak with us if you are unsure if you are either properly covered or paying too much for your home insurance.
