Will a Homeowners Insurance Claim Denial Raise Your Premiums?

Posted on April 18, 2023


Long Nguyen | author

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ICHQ | Site Author

Filing a claim on your homeowner’s insurance policy can sometimes result in higher insurance premiums. But will a denied claim impact your rates?

Insurance Claim HQ can help if your homeowners insurance claim was denied. Contact us to let us know if we can assist with moving your claim and your home’s repairs forward.

Can a Claim Denial Raise Your Premiums?

Generally, a homeowners insurance claim denial should not directly impact your premiums.

When your insurer determines your premium, they consider several factors, such as the age of your home, the value of your possessions, and the likelihood of a claim being filed.

While claims history can impact your premium, a claim denial does not count as a claim. Neither does a question about filing a claim.

However, if the damage to your home was caused by a covered peril, such as a storm, and you did not file a claim, your insurer may still raise your premium due to the increased risk of future claims.

In Louisiana, homeowners insurance companies cannot cancel or increase your premiums based only on an “act of God”. These are natural occurrences with no human intervention.

Note that your homeowner’s insurance premiums may rise in Louisiana if the region around your home is rated to be riskier to insure.

What Factors Can Raise Your Homeowner’s Insurance Premiums?

Several factors can impact your homeowner’s insurance premiums, and not all of them are related to claims. Some common factors that can cause a premium increase include:

  • Home value: If the value of your home has increased, your insurance premium may increase to reflect the higher replacement cost.
  • Location: If you live in an area with a high risk of natural disasters, such as hurricanes or wildfires, your premiums may be higher.
  • Credit score: Your credit score can impact your insurance premium, as some insurers view lower credit scores as a higher risk.
  • Deductible: If you choose a lower deductible, your premium may be higher than if you opt for a higher deductible.

Why Is Home Insurance Going Up?

In recent years, homeowners insurance premiums have been on the rise. Several factors contribute to this trend, including:

  • Increase in natural disasters: As natural disasters become more frequent and severe, insurers are paying out more in claims, leading to higher premiums.
  • Increase in home values: As home values rise, the cost to replace a home in the event of a claim also increases, leading to higher premiums.
  • Increase in claims: As more homeowners file claims, insurers must increase premiums to cover the rising costs.
  • The cost of labor and construction: The pandemic, supply chain issues, and a widespread shortage of construction positions have made it tougher to repair or rebuild homes.

What Can You Do If Your Claim Is Denied?

If your homeowner’s insurance claim is denied, it’s important to understand your options. First, review your policy to ensure that the denial is not due to a misunderstanding of the terms.

If you believe that the denial was made in bad faith, you may want to consult with an experienced homeowners insurance claim attorney. An attorney can help you evaluate your legal options and take steps to address the denial, whether that means appealing the decision or filing a lawsuit against your insurer.

Contact an Experienced Homeowners Insurance Claim Attorney

If you’re dealing with a denied homeowners insurance claim, an experienced attorney can help. Contact us today at Insurance Claim HQ to schedule a consultation and learn how we can help you get the compensation you deserve.