Claim History Impact
While it's not guaranteed, your premiums may go up if you file a claim for storm damage. When deciding on premiums, insurance firms normally look at your claims history from the previous three to five years. You may not be subject to an increase based on a single storm claim, particularly if you have gone several years without filing a claim. At renewal time, though, rates tend to go up when there are a lot of claims in a short period of time, regardless of whether they are weather-related or not.
Catastrophic Event Considerations
Insurance premiums in some areas may rise after large-scale disasters like tornado outbreaks or hurricanes, even if you didn't make a claim individually. Based on new weather pattern data and loss experiences, the insurer has reassessed the risk, which is reflected in this geographical adjustment. Companies may adjust their risk models after big disasters, which could lead to price hikes for all policyholders in the impacted areas.
Claim-Free Discounts
You might save money on your insurance premiums by not filing claims for a period of time. Even while the insurance company doesn't directly raise your base rate, filing a claim for storm damage will usually reset this reduction, making your premium effectively higher. Think about how much your claim-free discount will be worth over the course of several years before submitting fewer claims.
Factors Beyond Your Control
Insurance companies regularly reassess risk factors regardless of individual claims. Updated climate models, changing weather patterns, and increased construction costs can all drive premium increases that coincide with but aren't directly caused by your storm claim. Sometimes, what appears to be a claim-related increase is actually part of broader rate adjustments affecting all policyholders.
Mitigation Opportunities
If you take steps to avoid it, the effects of higher insurance rates after a storm will be less severe. If you put up storm shutters, roofs that can withstand impact, or garage doors that are stronger, your insurance company may lower the amount of claims they pay out. Many insurers offer special credits for making improvements that make homes more resistant to storms.
Risk of Cancelling the Policy
Besides higher premiums, filing multiple storm claims in a short amount of time could make your insurance company not renew your policy. Most insurance companies have limits on how many cases they'll accept in a certain amount of time. If you go over these limits, the company might not renew your insurance, leaving you to look for coverage somewhere else, which could cost more.