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House Insurance Claims That Will Increase Your Premiums

House Insurance Claims That Will Increase Your Premiums
Perhaps you’ve had some damage in your home or on your property and are wondering if making an insurance claim will affect your future policy rates.

Keep in mind that the more insurance claims you file, the more expensive your insurance premiums become. Even if you’ve recently moved, but have made claims in the past, this is also true.

The following five claim examples are likely to have the greatest impact on your insurance premiums.

Fire claims – whether your home is partially damaged or completely destroyed by fire, this type of claim can seriously affect your insurance rates.

Liability claims – when a person is injured or their personal property is damaged at your residence the liability aspect of your policy comes in effect to help them recover costs of medical expenses and/or replacement of their damaged property; thereby affecting your policy premiums.

Theft or vandalism claims – when something is stolen or damaged as a result of theft, your premiums may increase as a result of a claim. Be sure to speak with your insurance professional to learn ways to potentially offset the increase, such as installing security or alarm systems.

Water damage claims – this claim type accounts for a huge number of claims in Canada and house insurance policies in general cover damage as a result of an internal water problem. Typical policies do not cover damage as a result of water entering overland, via windows and doors as an example. It’s important to speak to your insurance professional to learn coverage exemptions and limits to ensure you have the coverage you need.

Weather related claims – claims from the natural disasters, such as high winds, tornadoes or earthquakes will very likely increase your insurance rates.

While the purpose of house insurance is to help homeowners financially recover from damage or loss, there’s a very good chance that a claim will result in an increase in rates.

Multiple claims may also exclude coverage or limit coverage amounts. It’s important to understand when it makes financial sense when to make a claim. Finally, it’s critical to educate yourself on your policy coverage and limitations... before you need to make a claim.

If you’d like to discuss your house insurance, we’re here if you need us, reach out to us at 1-800-679-2640 or