Home insurance is designed to protect your home in case of an accident or natural disaster. Unfortunately, even if an accident does happen while you have home insurance, this doesn’t mean you’re completely in the clear when it comes to expenses.
When you file a claim on your home insurance policy, you will often see a rise in your rates based on the type of claim, severity of the claim and other factors.
Why Do Home Insurance Premiums Go Up After a Claim? 
Home insurance premiums are primarily calculated based on the risk your insurance provider faces of paying out for a claim. The more likely you are to file a claim, the more likely your insurance provider will have to pay compensation. This is why high premiums are often used to compensate for this risk.
If you do file a claim, this affects your risk as well as causing your insurance provider to pay out, thus making your rates go up. They won’t stay high forever, though. A home insurance claim may remain on your record from five to seven years, although the time frame varies on several factors. If you do have to file a claim, be sure to speak with your insurance agent about your options and when you can expect the claim to leave your record.
What Happens if a Claim is Denied?
Homeowners should be aware of the limitations and exclusions on their home insurance policy. Most policies do not include water damage caused by floods or sewer issues. Earthquakes are commonly excluded. If you offer any of these coverages, be sure to inform clients about the dangers of not carrying it. Floods and earthquakes cost millions of dollars every year in damage to homes.
If something is not covered by your policy, your home insurance claim could be denied.
If a claim is denied, you will not receive compensation for damages to your home, meaning you will have to pay for repairs out of pocket. Filing too many denied claims can raise red flags with your insurer and cause higher rates or even a cancelled policy. This is because frequently fraudulent claims are known as soft fraud and can affect your ability to stay insured.
Do I Have to File a Home Insurance Claim?
You do not always have to file a home insurance claim after an accident. In fact, if your damages do not exceed your deductible, it may be best not to file a home insurance claim at all. Be sure to remain in contact with your insurance agent to keep them in the loop whether you plan on filing a claim or not.