Does Homeowners’ Insurance Go Up if There is Damage From a Storm?
We have homeowners insurance to protect our most cherished asset in the event of damage caused by fire, wind, hail, snow, hurricanes, or tornadoes. However, even if an event happens and we are fully insured, we may hesitate to file a claim.
That’s because we all know what happens after filing a claim: your rates go up. A weather event can cause tens or even hundreds of thousands of dollars in damage to your home. Such an event can cause your homeowners’ insurance to increase by hundreds of dollars a year.
So, after your home suffers damage from a storm, you may wonder: should I report it? Is it better to just fix the issue myself?
Whether or not to file a claim will depend on the amount of damage as well as your deductible. If a storm caused a fence to come down and the damage is valued at just $3,000, while your deductible is $2,000, it may not be worth the $1,000 claim payment. That’s because your rates will likely rise for a period of time, especially if you live in an area where adverse weather conditions are common.
However, rate hikes ultimately depend on factors such as the circumstances of how you suffered the specific loss and the outcome of the claim investigation. Insurance companies do tend to impose higher rate hikes for certain types of claims, such as:
- Water damage
- Mold damage
- Dog bites
- Liability claims
That’s because if you file one of the claims, you are more likely to file more within a short period of time. This is especially true for liability claims, which often result in huge insurance payouts. The insurance company does not want to take on this risk, so they will increase rates. You are also considered high risk if any of the following are true:
- You live in an area with severe weather.
- Your home is in a high-crime area.
- You own a home with a history of claims.
- You have filed liability claims in the past.
- You have filed more than one claim over the past several years.
Keep in mind that insurance companies can also choose to not renew your policy if you file multiple claims within a period of three or five years. This is true even if the incident was not your fault. However, insurance companies do sometimes view natural disasters differently than other types of claims .
Contact Our Michigan Homeowners Insurance Agency Today
Having homeowners’ insurance can be a bit of a Catch-22. You need it for the unexpected but even then, you may not want to use it.
At Hartman Insurance, we will help you deal with the unexpected. We have been dealing with property owners in the Saline and Ann Arbor areas since 1946. Ensure your assets are protected. Get a quote today. Contact us online or give us a call at (734) 808-3146.