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What to Know About Homeowners Insurance Claims in Phoenix, Arizona

While homeowners insurance policy in Phoenix, AZ, isn’t legally required, it can still benefit you. If your home gets damaged, your standard policy covers the repair cost. However, it helps to know when you should file a claim to avoid higher premiums.

Why Premiums Increase After Claims

Stats from the Insurance Information Institute between 2014 and 2018 show claims cost providers over $13 billion with the most claims from property damage. When you file a claim for damages, the provider sees you as a risk for filing in the future. How the claim affects your rates often depends on the type of claim you file.

Another survey from 2021 reveals weather-related claims have the least impact on your premiums. Fire claims are the most likely to increase your premiums because they cause more damage. Also, providers cannot raise rates in certain situations, such as a denied claim or a single claim.

When to File a Claim

A general rule is if the cost comes close to the deductible more or less, consider paying out-of-pocket. Determine if your policy covers the peril, because if the claim gets denied it gets added to your CLUE report. CLUE stands for Comprehensive Loss Underwriting Exchange, which reports claim history from all owners.

If you have filed a claim within the last three years, you probably shouldn’t file another one. The average homeowner files one claim every decade, but filing multiple small claims could get you dropped.

File claims against your the best homeowners’ insurance policy in Phoenix, AZ, when you have significant damages. If you feel your current policy isn’t enough, you can always add more coverage.



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