“Will my insurance rates go up if I file a claim?” We often get the question about insurance rates after we identify storm damage.
The short and simple answer is yes, your rates will most likely go up.
With that in mind, are your rates the same as they were ten years ago? No, of course not, because rates are always going up whether you file a claim or not. That’s just how business works.
Rates increasing are related to your zip code and catastrophic storms. If a major storm comes through your area, the rates will go up because of the amount of money the insurance company is paying out. This is especially true for large insurance companies. However, small insurance companies, such as Western Reserve Group, are more lenient and will take on these high risk clients.
The misinformation you’ll get from some contractors is that the rates won’t go up or that it is illegal for your rates to go up. This is simply not true.
Now some insurance companies are more strict than others. If you have had more than two claims filed in the last five years, you will be considered high risk and larger companies, such as State Farm, are very likely to drop you as a client.
Make sure you find an independent agent to help you find the best insurance company for you and your situation.
*Thank you Dane Harding with Dane Harding Insurance and Steve Whetstone with Whetstone Legal for the assistance writing this blog.
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