Categories: Katonah

Homeowner’s Claims Can Send Premiums Sky High | Katonah Real Estate

Filing a single homeowner’s insurance claim can raise consumers’ annual insurance premiums by more than 30 percent, or hundreds of dollars each year, according to research by insuranceQuotes.com, a subsidiary of Bankrate Insurance.

Nationally, one claim leads to an average premium increase of nine percent. The states with the highest single claim increases are Wyoming (+32%), Connecticut (+21%), Arizona (+20%), New Mexico (+19%) and California (+18%).

In Texas, home insurers are not allowed to increase premiums after one claim. The next-lowest increases were observed in New York (+2%), Massachusetts (+2%), Florida (+3%) and Vermont (+4%).

A second claim brings the national average increase up to 20% (the highest increase from a second claim was Michigan’s 71%).

“Homeowners need to be really careful when filing claims,” said Laura Adams, insuranceQuotes.com’s senior analyst. “Even a denied claim can cause your premium to go up. Make sure to know your policy’s specific guidelines and only file a claim when absolutely necessary. Winning a small claim could actually cost you money in the long run.”

Nationally, liability claims are most likely to cause the greatest premium increases. A single liability claim causes premiums to rise by an average of 14%. Theft, vandalism and fire are not far behind. Medical claims (+2%) are the cheapest.

 

 

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http://www.realestateeconomywatch.com/2014/10/8159/

 

Robert Paul

Robert is a realtor in Bedford NY. He has been successfully working with buyers and sellers for years. His local area of expertise includes Bedford, Pound Ridge, Armonk, Lewisboro, Chappaqua and Katonah. When you have a local real estate question please call 914-325-5758.

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