Worried About Higher Premiums or Dropped Coverage?
File a Claim With Facts, Not Fear.
Many property owners hesitate to file an insurance claim because they’re worried about rising premiums or, worse, losing coverage altogether.
Here’s what studies suggest may lead to rate increases and coverage issues—and what doesn’t.
What Affects Property Insurance Premiums
Insurance companies consider a range of factors when adjusting rates, and a single, legitimate claim is rarely the sole reason for an increase. Below are the most common reasons your premium might change:
1. Frequent Claims
Filing multiple claims on the same property—typically two or more within five years—especially for small or preventable issues, can lead to a rate increase.
2. Regional & Local Risk Patterns
Living in a high-risk area prone to hail, wildfires, or hurricanes—or even in a ZIP code with a high volume of recent claims—can raise premiums for the entire region, regardless of whether you’ve filed a claim.
3. Inflation & Material Costs
Rising construction and labor costs can increase your property’s replacement value, which affects your coverage amount and premium.
4. Poor Property Condition
Properties with aging roofs, structural issues, or other deferred maintenance are considered higher risk and may increase premiums.
5. Coverage Changes
Increasing policy limits, lowering your deductible, or adding additional coverage can raise your rate.
What Doesn’t Lead to Being Dropped by Your Carrier
Many property owners fear that filing a claim or asking questions could jeopardize their coverage. The truth is, insurance companies don’t drop property owners for using their policy responsibly. Below are common situations that do not typically impact your insurability.
1. One Valid Claim
Filing a single claim, especially for storm-related or non-preventable damage, is common and rarely penalized.
2. Working With a Public Adjuster
Most states recognize the right of property owners to work with licensed professionals, like a public adjuster, who specializes in property claims and understands construction in detail.
3. Requesting a Damage Review
Getting an inspection or policy review from a third party does not affect your insurance record. It provides valuable insight into what qualifies as damage and what may be covered before filing a claim.
4. Switching Carriers After Filing
Having a claim on your record doesn’t prevent you from obtaining new coverage or shopping for better terms. In fact, completing repairs—such as a new roof—can often improve your insurability by reducing future risk.
5. Weather-Related Claims
“Acts of God,” like hail or wind, typically don’t count against you the same way preventable or repeated claims might.
What Can Lead to Premium Increases or Being Dropped
While using your policy responsibly won’t jeopardize your coverage, certain patterns or property conditions can raise red flags for insurance companies. Understanding these risk factors can help you avoid preventable issues and maintain strong insurability.
1. Neglected Repairs or Deferred Maintenance
Failing to address known damage, especially after a claim, can result in denied future claims or non-renewal due to the presence of pre-existing or worsening conditions.
2. High-Risk Additions or Liability Concerns
Items like trampolines, unfenced pools, or non-permitted structures may increase the risk of injury or liability. These can lead to higher premiums or cause a carrier to cancel or refuse to renew coverage.
3. Multiple Claims in a Short Time
Filing multiple claims for preventable issues—like repeated water leaks or maintenance-related damage—can raise red flags and result in premium increases or non-renewal.
4. Policy Violations or Fraud
Failing to meet your responsibilities under the policy, such as not mitigating further damage, or submitting inaccurate information, inflated repair estimates, or knowingly false claims.
5. Refusing Inspections or Carrier Requests
Insurance companies may require inspections, documentation, or follow-up questions during the underwriting process or after a claim is filed. Refusing access or failing to provide requested information can be considered non-cooperation and may lead to non-renewal or denial of coverage.
What is an “Act of God” Claim?
In insurance, an “Act of God” refers to a natural event that is sudden, unexpected, and at no fault of the property owner. These events are typically not preventable and are often covered under standard property insurance policies.
“Act of God” Claim:
- Hailstorms
- Wind damage
Preventable Claim:
- Pipe Leaks, whereas regular maintenance could have prevented
- Burglary or Theft, whereas security systems and preventative measures could have been utilized.
Because these events are considered unpreventable, filing a claim for “Act of God” damage is generally not penalized the same way as claims for preventable issues like pipe leaks or mold growth.
Not Sure If You Should File? Let Us Help You Decide.
Filing a claim should never feel like a gamble. That’s why having a team on your side who understands both your coverage and the damage is critical.
If you’re unsure whether damage qualifies or what your policy actually covers, we can help. Our team offers no-obligation property assessments and detailed policy reviews—so you have the clarity to make the right call before involving your insurance company.
We don’t just file claims—we advocate responsibly.
Submit your claim for review today!
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