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How Does Submitting A Claim Affect My Future Homeowners Insurance Coverage And Premium?

Joseph Coupal - Wednesday, April 01, 2020

The Crackman, Rich Comeras, as a public service, shares common questions that homeowners have regarding a wide range of homeowner insurance coverages. Today he is joined by his friend, Peter Marshall, from Marshall Insurance where they discuss: HOW DOES SUBMITTING A CLAIM AFFECT MY FUTURE HOMEOWNERS INSURANCE COVERAGE AND PREMIUM?

Rich: Hi, this is Rich from A1 Foundation Crack Repair, I’m here with Peter Marshall from Marshall Insurance. And, I’m in basements all the time, and people do have some issues, and they think about putting claims in with their insurance company, and the question that comes out is if I put it in a claim, is my insurance premium going to go up or is the insurance company going to drop me as a customer?

Peter: Good question. So typically, they’re not going to drop you as a customer. If they see a frequency issue, a number of claims within a short amount of time, then they may non-renew you. But if it’s your first or second claim, then no, they’re not going to drop you. But it is going to impact your premium. Every insurance company we work with offers a claim-free discount, and that can be anywhere from 5%-20% off of your premium. So it can be a significant savings each year. Most of the insurance companies offer this discount for as long as you don’t have a claim, and they look back 5 years, some look back 3 years. But if you have a claim, if there’s a $1,000 worth of damage and you have a $500 deductible, what you need to look at, what I talk my customers through is, “Ok, if we file the claim today, I’m going to get $500 after my deductible to apply to the damage. What is that going to do to my premium for the next 5 years?” And if your claim-free discount is over $100 a year, then it’s not going to be worth it to file the claim, because you’re getting $500 today versus saving well over $500 by keeping that claim-free discount on your policy. But if it’s a significant claim, you absolutely want to file it right away. And yes, you’ll take the hit on your premium, but you also don’t have to write that big check today to repair the damage.

Rich: Peter, good to know. And for anybody out there, if you do have any insurance problems or questions, feel free to pick up the phone and call Peter from Marshall Insurance. Thank you.

If you have a basement water problem and think you need a professional, or, if you’d like more information on foundation repair and waterproofing topics, please visit or call Rich at (866) 929-3171. Or you can email rich at Thanks for watching and keep that basement dry.

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