Are You Likely To Experience a Rate Hike When You Seek Insurance Assistance?

4/11/2022 (Permalink)

Water damage in Monte Sereno, CA.

Are You Likely To Experience a Rate Hike When You Seek Insurance Assistance?

Homeowners in Monte Sereno, CA, pay monthly premiums to insurers to have assistance in times of trouble. Filing an insurance claim is a lifesaver for many, avoiding significant costs at one time; however, does this action mean residents will pay more in future premiums? The answer to that question isn't simple or easily discerned. It depends on multiple factors. Here are three factors that influence an agency's rate adjustment.

What Caused the Water Damage?

While requesting compensation, the agent is likely to ask about when the harm began, how it happened and if immediate action was taken to mitigate the destruction. If owners caused the issue or allowed it to fester, insurers get concerned. Paying for them might happen, but it could mean that you'll pay for your actions in the premiums.
If the fault doesn't fall on the owner but on nature or someone else, the insurer may not place blame, forgiving the event and leaving the monthly cost alone. Without a doubt, prioritize cleanup to show good faith. Agents are likely to appreciate a swift response from a water restoration company.

Where Do You Live?

Some locations are likely to see more people filing insurance claims. Residents living along the coast may have hurricanes blow through more often, causing harm to roofs. The same is true of homeowners living in flood zones, tornado alleys and heavy snowfalls. Agencies are likely to evaluate how much they could payout over time, using this probability to calculate monthly fees.

How Often Are You Making Requests?

Insurance companies are a business. While they offer monetary assistance, they must weigh the risk of putting out too much. The business considers how frequently owners ask for coverage. Filing for a home flood is one thing. If the owners also ask for roof and foundation repair, that could be too much for the establishment to sustain within a short window of time.
File an insurance claim when the money is needed. Be aware that the insurer has the right to evaluate the risk of the payment in the future, adjusting bills to assist in future demands.