If my husband and I incur a loss, will our rates go up?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 16, 2021

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Insurance companies have been changing how they charge rates on homeowner policies, including increasing rates for losses. However, not every loss will generate a rate increase. If the loss is considered a catastrophe, and caused by a natural disaster or fire, the rates will not be affected. In addition, some companies will not increase your rates if you’ve been insured with them over several years and have not suffered a loss. They may allow you one-time loss forgiveness due to your loyalty.

Often the rate increase is the result of a credit you have been given for being claim free. When you have a loss, that discount, or credit, is discontinued for a period of time, generally 3-5 years. You will then be given the discount once again. If you continue to have losses, the company may decide to increase your deductible, or even decline to renew your insurance. If that happens you will find it difficult to find a replacement policy, so take care when submitting claims.

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