Insurance claim and premium increases

[Sojourner]

I have been dealing my insurance company recently regarding a wind-damaged roof on my house, and they have approved my claim -- fairly quickly and without much push back, much to my surprise. They'll be paying out a total of about $4,400 for replacing the roof, and I'll be covering the rest due to my deductible, etc.

My question is, for those who have gone though this process before, does the insurance company routinely raise premiums after a claim like this? If so, how much of an increase could I reasonably expect? My current yearly premium is roughly $650. It would seem to me that they should not raise my premium since the new roof is much less likely to allow water to leak into the house and will be much better at protecting the structure and the surfaces it's covering, but I have a bad feeling that I'm going to see an increase nonetheless. As a side note, this is the first time I have ever made an insurance claim for anything on my home or auto policies after 25+ years of paying premiums.

 

[meierlde]

I have been dealing my insurance company recently regarding a wind-damaged roof on my house, and they have approved my claim -- fairly quickly and without much push back, much to my surprise. They'll be paying out a total of about $4,400 for replacing the roof, and I'll be covering the rest due to my deductible, etc.

My question is, for those who have gone though this process before, does the insurance company routinely raise premiums after a claim like this? If so, how much of an increase could I reasonably expect? My current yearly premium is roughly $650. It would seem to me that they should not raise my premium since the new roof is much less likely to allow water to leak into the house and will be much better at protecting the structure and the surfaces it's covering, but I have a bad feeling that I'm going to see an increase nonetheless. As a side note, this is the first time I have ever made an insurance claim for anything on my home or auto policies after 25+ years of paying premiums.

It depends on the state. In some states claims due to weather do not result in premium increases since you did nothing to cause the weather event. This article from bankrates suggests which types of claims are likley to increase premiums and which not.
Claims That Boost Your Insurance Rates | Bankrate.com

 

[jazz4cash]

Do they account for the age of the roof when they calculate the claim? Doesn't seem likely they would pay full price if the roof was near the end of its service life. Just curious.


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[rdy2go]

If you have been with the same company for a number of years the claim should not trigger a premium increase. That said, some companies are raising rates just to keep up with inflation, wage increases, etc. I have been an underwriter and a small claim like this should not raise eyebrows at all. Now, you might lose a loss-free discount if you are currently getting one since you did have a claim. In Texas, a company is not allowed to raise your premium just due to one weather-related claim as meierlde mentioned.

As to the question on the age of the roof, you will get paid for a new roof less your deductible if you have replacement cost coverage but only the depreciated actual cash value if you don't have replacement cost coverage. This also assumes that your home is properly insured to value.

 

[Sunset]

I guess you have a large deductible, as 4.4K sounds low.

Did you already get quotes from roofing companies (be sure to pick someone who has been in business locally for years) , or was it the insurance agent/estimator who stated the price ?

The roofer might have a different number.

Also take the time to consider what type of shingles/roof you will replace it with, as you can upgrade/change although the insurance company would probably not foot the upgrade cost. The cost to upgrade from 25 yr shingles to 40 yr shingles is very cheap as the cost difference is the shingles themselves.