Will Filing an Insurance Claim Raise Your Rates?
One of your primary concerns after a home flood may be whether filing an insurance claim will raise your rates. You may automatically assume the answer will be positive, but it's best to do some research before making this decision. There are many factors that could affect your rates, for good or bad.
How Many Claims Have You Filed?
Even if water damage is minor or if the situation wasn't your fault, if you have filed many claims in the past, there's a greater chance that rates will go up. In fact, if you have too many claims, the insurance company may decide not to renew your policy.
What Were the Circumstances Surrounding the Claim?
If you directly caused the damages that led to the insurance claim, there's a greater possibility that you'll see a hike in your rate. The same is true of a home flood that is the result of not providing proper maintenance on your home. On the other hand, if there's an unusual natural disaster in your area and if you haven't filed before, there's a good chance that your rates won't go up.
What Are the Insurance Requirements?
Sometimes, insurance companies will require you to contact certain home restoration professionals before any repairs are completed. They may expect you to provide photographic evidence or a statement from the local fire department. Your rates may stay the same or go up depending on whether you were in compliance with those expectations.
How Long Does the Rate Hike Last?
Did you know that rate hikes don't necessarily last forever? In many cases, your rate hike will be reversed after two to five years. With this knowledge, you should feel more comfortable filing an insurance claim.
If your home has been affected by flooding in Littleton,CO, don't hesitate to contact your insurance company. The representative may be willing to discuss your options or provide advise about your next steps.