How Home Insurance Claims Affect Your Premiums — What to Know
Filing a homeowners insurance claim often raises your premium for 3–7 years. The size of the increase depends on what type of claim it is, how much it costs, and your claims history. In some cases, just asking about a claim — without even filing — can be recorded in your CLUE report and affect future quotes.
Estimate your premium based on your home and coverage needs with the Homeowners Insurance Calculator.
Average Premium Increase by Claim Type
| Claim Type | Avg Premium Increase | Duration |
|---|---|---|
| Water damage (burst pipe) | 15–20% | 3–5 years |
| Fire damage | 20–32% | 5–7 years |
| Theft/burglary | 10–15% | 3 years |
| Liability (someone injured) | 15–25% | 3–5 years |
| Wind/hail damage | 7–12% | 3 years |
| Dog bite | 20–30% | 3–5 years |
| Catastrophic (widespread event) | 5–10% | 2–3 years |
Water damage and liability claims are the most common and tend to cause substantial increases. Catastrophic claims — where a widespread event (hurricane, tornado) affects many homes — typically have a milder impact on individual rates because insurers spread the cost across their entire book of business.
How Many Claims Is Too Many?
| Claims in 3 Years | Likely Outcome |
|---|---|
| 0 | Claims-free discount (5–15%) |
| 1 | Moderate increase (7–20%) |
| 2 | Significant increase (20–40%) + possible non-renewal |
| 3+ | Non-renewal highly likely — may need high-risk carrier |
Two claims within three years is often the threshold where insurers start considering non-renewal. After non-renewal, you'll have a mark on your CLUE report that makes finding affordable coverage much harder for the next 5–7 years.
The CLUE Report
Every homeowners insurance claim is recorded in the Comprehensive Loss Underwriting Exchange (CLUE) database, maintained by LexisNexis. When you apply for new insurance, the company pulls your CLUE report to see your claims history for the past 7 years.
What appears on CLUE:
- Claims you filed (type, amount, date)
- Claims inquiries (even if you just called to ask)
- Claims on the property (regardless of who filed them)
You can request your free CLUE report at LexisNexis once per year. Do this before shopping for insurance so there are no surprises.
When to Skip Filing a Claim
For smaller damage, filing a claim may cost you more in premium increases than the payout is worth.
Example: Your deductible is $1,500 and the repair costs $2,500. Filing gets you $1,000 from insurance. But your premium rises 15% ($285/year) for 3 years = $855 in extra premiums. Net benefit of filing: $145. Barely worth the hassle and the mark on your CLUE report.
Rule of thumb: If the claim payout (after deductible) is less than $2,000–$3,000, consider paying out of pocket. Save your claim filing for significant damage where the payout substantially exceeds the long-term premium cost.
How to Minimize Claim-Related Increases
Maintain a claims-free record. Many insurers offer a 5–15% "claims-free" discount after 3–5 years with no claims. This discount compounds — keeping a clean record for years builds significant savings.
Choose a higher deductible. A $2,500 deductible naturally prevents you from filing small claims, which keeps your CLUE report clean and protects your premium.
Ask about claim forgiveness. Some insurers (Amica, Erie, Travelers) offer claim forgiveness that prevents your first claim from triggering a rate increase. This is a valuable perk — ask about it when shopping.
Shop around after a claim. Different insurers weigh claims differently. After a rate increase from a claim, get quotes from 3–5 other companies. You may find one that's less punitive about your specific claim type.
For more strategies to keep costs down, see How to Lower Homeowners Insurance Premiums. For choosing the right deductible level, read Home Insurance Deductible — How to Choose. And for state-by-state costs, check Average Home Insurance Cost by State 2026.
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