If you’ve ever filed a claim with your home insurance company, you might’ve wondered what happens next — especially to your premium. So, does home insurance go up after a claim?
The short answer is: yes, it often does.
Filing a claim can cause your home insurance rates to increase because insurers see it as a sign that your home might be at higher risk for future claims. But the amount of increase, and whether it happens at all, depends on what kind of claim you filed, your insurance history, and your provider’s policies.
Let’s break it down in simple terms.
Why Does Home Insurance Go Up After a Claim?
Insurance companies use claims history to predict risk. When you file a claim, it signals that your home has already experienced a problem — like water damage, fire, or theft — which could happen again.
So, to protect themselves from higher risk, insurers often raise your premium. It’s not meant to punish you, but rather to balance out potential future costs.
Think of it like this: if your neighbor’s home has never had an issue, and yours had two claims in the last few years, your home statistically looks riskier to insure.
That’s why, yes — home insurance can go up after a claim.
How Much Does Home Insurance Go Up After a Claim?
The exact increase varies by insurance company and state, but on average, a single home insurance claim can raise your premium anywhere from 10% to 25%, sometimes more.
Here’s a quick example:
- If you currently pay $1,500 a year for home insurance, a claim might bump that up to $1,650–$1,875 per year.
- More severe or multiple claims could lead to even higher increases — sometimes up to 40% or more.
Keep in mind: insurance companies look at your Comprehensive Loss Underwriting Exchange (CLUE) report, which lists your claim history for the past five to seven years. Even if you switch providers, your claim record follows you.
What Type of Claims Make Home Insurance Go Up the Most?
Not all claims are treated equally. Some claims barely affect your rate, while others can make it jump significantly.
Here’s how common claim types stack up:
1. Fire or Smoke Damage
Fire claims are usually the most expensive and often cause major rate increases. That’s because fire damage can be severe, leading to big repair costs and long restoration times.
2. Water Damage
Water damage (not from floods, which are separate) is another high-risk claim. If you’ve had issues with burst pipes or leaks, insurers may worry about mold or future water problems, which could raise your rate.
3. Weather-Related Damage
Storms, wind, hail, or lightning strikes are usually considered “acts of nature.” Some insurers don’t raise rates much after these claims, since you can’t control the weather — but if your area is prone to frequent storms, premiums may still increase.
4. Theft or Vandalism
Claims for theft or vandalism can also trigger an increase, especially if you live in an area with a high crime rate. Insurers may see your property as riskier.
5. Liability Claims
If someone got injured on your property and filed a claim, your home insurance could rise. These claims can be costly for insurers since they often involve legal fees or settlements.
When Does Home Insurance Not Go Up After a Claim?
There are a few cases when your home insurance might not go up — or at least, not by much.
1. First Claim Forgiveness
Some insurance companies offer “claim forgiveness” for your first claim. That means if it’s your first incident in several years, your premium won’t increase.
Check your policy or ask your agent if this feature is available — not all insurers offer it, but it can save you hundreds of dollars.
2. Minor or Low-Cost Claims
If the claim is small (like under $1,000 or close to your deductible), it may not impact your rate at all. Sometimes, filing small claims isn’t worth it, since it can still appear on your record.
3. Weather or Natural Disasters
Some states restrict insurance companies from raising rates after natural disasters or large-scale weather events. So, if a major storm hits your neighborhood, your rate might stay the same.
How Long Does a Claim Affect Your Home Insurance?
A claim can stay on your insurance record for five to seven years, depending on the insurer.
During that time, it can affect your premium or eligibility for discounts. After that period passes, the claim typically drops off your record and no longer impacts your rates.
If you’ve had multiple claims in a short time, your insurer might see you as too risky to renew, which could lead to policy cancellation or non-renewal.
That’s why it’s important to only file claims when necessary.
When Should You File a Home Insurance Claim?
Sometimes, filing a claim makes sense — other times, it’s better to pay out of pocket. Here’s how to decide:
File a Claim If:
- The damage is severe or expensive to fix (like fire, theft, or large water damage).
- The cost of repairs is much higher than your deductible.
- You haven’t filed a claim in the past few years.
Don’t File a Claim If:
- The damage is minor or close to your deductible amount.
- You’ve already filed a claim recently.
- It’s something caused by wear and tear (which isn’t covered anyway).
Sometimes, it’s smarter to save your claim for bigger incidents that truly need coverage.
How to Prevent Your Home Insurance From Going Up
While you can’t always control what happens, you can take steps to reduce your risk and keep your premiums low:
- Maintain your home: Fix leaks, check wiring, and clean gutters regularly.
- Install safety devices: Smoke alarms, water sensors, and security cameras can earn you discounts.
- Bundle your policies: Combining your home and auto insurance with the same company can lower rates.
- Avoid unnecessary claims: Handle small repairs yourself if affordable.
- Ask about loyalty or claims-free discounts: Many insurers reward long-term, claim-free customers.
These steps can show your insurer that you’re a responsible homeowner — which can help balance out the effect of a past claim.
Final Thoughts: Does Home Insurance Go Up After a Claim?
So, does home insurance go up after a claim?
Yes — it usually does, especially if the claim is costly or recent. Insurance companies raise rates to balance the risk of future claims.
But don’t panic. Not all claims lead to big increases, and some companies offer forgiveness programs or discounts to help offset costs.
The key is to use your insurance wisely — file claims when you really need them and handle small repairs yourself when possible.
That way, you’ll keep your coverage strong without paying higher premiums in the long run.