Why does a home insurance premium increase after you file claims?
I filed one claim in the past year on my home for a mold problem. At renewal, my premium almost doubled in price. Why does home insurance increase after just a sole claim?
, home insurance increases after claims because the insurance company deems you more likely to file claims in the future.
The basis of insurance is the transfer of risk. When you pay a premium to an insurance company, it goes into a premium pool. This pool is what companies use to pay for claims filed by any policyholder. If you are high-risk, an insurance company has to charge you more to offset your likeliness to file claims.
If you don’t file any additional claims, your insurance will likely begin to decrease over time. You can also look into other insurance companies. Since you’ve only submitted one claim, you may be able to find a company that is offering a better rate.
If you have a separate car insurance policy, you may also consider trying to
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