After you file a home insurance claim, three things typically change: your premium goes up, you lose any claim-free discounts and your claim is recorded on a national database that other insurers can access.
Home Insurance Costs After A Claim
Updated: March 12, 2026
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Key Takeaways
Homeowners who have at least one claim filed in the past five years pay 16% more per year on average than those with no claims.
Your claims history appears on a CLUE report, which insurers review for five to seven years when pricing your policy.
Rate increases after a claim vary widely by provider: AIG Insurance charges $1,408 per year after two claims, while Progressive charges $7,118.
What Happens After You File a Home Insurance Claim?
Your rate may increase
Insurers view a filed home insurance claim as a sign of higher risk, even if the damage wasn't your fault. Your insurer recalculates your premium at renewal based on the type of claim, the payout amount and your overall claims history.
You lose claim-free discounts
Many insurers offer a discount of 5% to 20% for policyholders who haven't filed a claim in several years. Once you file, that discount disappears at your next renewal and won't return until you rebuild a clean claims record. This loss stacks on top of the rate increase itself, which is why some homeowners see their premiums jump by more than the base increase alone.
Your claim goes on your CLUE report
The Comprehensive Loss Underwriting Exchange (CLUE) is a database that tracks your claims history for up to seven years. Every insurer can pull your CLUE report when you apply for a new policy or renew an existing one. Even if you switch providers, your past claims follow you through this report.
TOO MANY CLAIMS COULD CAUSE INSURANCE CANCELLATION
Filing multiple claims in a short period can lead your insurer to cancel or non-renew your homeowners policy. Most insurers flag policyholders with three or more claims in five years as high-risk, and some will drop coverage after just two. If your insurer cancels your policy, you may need to buy coverage through a state-backed FAIR plan, which often costs more and covers less than a standard policy.
How Much Do Home Insurance Rates Go Up After A Claim?
Home insurance premiums increase after a claim, and the more claims you file, the more you'll pay. MoneyGeek's analysis found that the average cost of home insurance with one claim in five years is $3,961 per year for a policy with $250,000 in dwelling coverage, while claim-free homeowners pay $3,417 for the same policy. A second claim raises that average to $4,418, or 29% above the claim-free baseline.
The table below breaks down average monthly and annual premiums by claims history. Toggle the dwelling coverage amount to see rates at different levels.
Data filtered by:
$250K Dwelling / $125K Personal Property / $200K Liability
| Claim free for 5+ years | $285 | $3,417 |
| 1 claim in the past 5 years | $330 | $3,961 |
| 2 claims in the past 5 years | $368 | $4,418 |
Home Insurance Rates by State, Coverage and Credit Score
Compare home insurance costs for a 41-to-60-year-old homeowner with at least one claim in the past five years and a 2,500-square-foot home.
Select Coverage Level
Select Deductible
Select Claims History
Average Monthly Premium—
How Long Does a Claim Affect Your Home Insurance Rates?
Claims typically affect your home insurance rates for three to five years, depending on your insurer's rating rules. The claim stays visible on your CLUE (Comprehensive Loss Underwriting Exchange) report for up to seven years, which means other insurers can see it even if your current provider stops surcharging you for it. Once the claim drops off your CLUE report entirely, it no longer factors into your premium.
Does the Type of Home Insurance Claim Affect How Much Rates Increase?
The type of home insurance claim you file has a direct effect on how much your premium increases at renewal. Insurers assign different risk levels to different claim types, and claims they consider preventable or likely to recur usually carry the steepest rate hikes.
Liability claims
These trigger the largest rate increases. Personal liability claims cover injuries or property damage to others that happen on your premises, and payouts can reach tens of thousands of dollars. A guest who breaks a leg on your icy walkway, for example, could result in a claim that raises your premium more than a comparable wind damage claim.
Water damage claims
These lead to above-average rate hikes because insurers view water damage as preventable and likely to recur. A burst pipe that causes $15,000 in damage to your floors and walls will likely raise your rate more than a $15,000 hail damage claim, because your insurer considers the pipe issue a maintenance problem.
Theft claims
If you need to file a theft insurance claim, this falls in the middle for rate impact. A break-in that results in a $5,000 personal property claim may raise your rate, but typically less than a liability or water damage claim of the same amount. Some insurers also consider whether you had security features like deadbolts or an alarm system when pricing the increase.
Wind and hail claims
These usually result in the smallest increases. Insurers treat weather events as outside your control, so they penalize these claims less than other types. If a hailstorm damages your roof and you file a $10,000 claim, your rate increase will likely be lower than it would for a $10,000 water damage or liability claim.
DO ALL CLAIMS RAISE YOUR PREMIUM?
Not all claims raise your premium. Some insurers offer claim forgiveness programs that waive the first rate increase after a claim, and weather-related claims in areas with frequent storms may be treated more leniently. Check with your insurer to see if claim forgiveness is included in your policy or available as an add-on.
When to File a Home Insurance Claim vs. Paying Out of Pocket
Filing a claim isn't always the cheaper option in the long run. A small claim that barely exceeds your deductible could raise your premium for three to five years, costing you more over time than the payout you receive. Here’s when to file:
Pay out of pocket when:
- The damage is less than twice your deductible. With a $1,000 deductible and $1,800 in damage, your insurer would only pay $800, far less than the $1,632 to $2,720 you'd lose in higher premiums.
- You already have a claim on your record. A second claim pushes the average annual premium from $3,961 to $4,418 and increases your risk of cancellation.
- The repair is cosmetic or non-urgent. A scratched garage door or minor siding damage won't worsen over time, so there's no reason to absorb years of higher premiums for a small payout.
File a claim when:
- The damage is well above your deductible. A $15,000 roof replacement or $25,000 fire restoration will far exceed the $1,632 to $2,720 premium increase over three to five years.
- The damage could get worse without immediate professional repair. Water damage, structural issues or fire damage often spread if not addressed quickly, and the cost of waiting can exceed the cost of a rate increase.
- Your policy includes claim forgiveness. If your insurer won't raise your rate for a first claim, there's no financial downside to filing.
Can You Avoid a Rate Increase After Filing a Claim?
Avoiding a rate increase entirely is unlikely after filing a claim, but you can take steps to reduce the financial hit:
- 1Check for claim forgiveness
Some insurers waive the surcharge on your first claim if your policy includes this feature.
- 2Raise your deductible
A higher deductible lowers your base premium, which can offset part of the rate increase.
- 3Shop around
Rate increases vary by insurer, so comparing quotes from three to five providers may reveal a cheaper option even with a claim on your record.
Home Insurance Providers with the Lowest Rate Increases After a Claim
Rate increases after a claim aren't uniform across providers. AIG Insurance charges the least for homeowners with two claims in five years, averaging $1,408 per year for a policy with $250,000 in dwelling coverage and a $1,000 deductible. At the other end, Progressive charges $7,118 per year for the same coverage and claims history, more than five times what AIG Insurance charges.
Even with two claims on your CLUE report, comparing providers and switching to a lower-cost insurer could cut your annual premium by thousands.
Data filtered by:
1 claim in past 5 year
| AIG Insurance | $105 | $1,262 |
| Amica | $138 | $1,651 |
| CSAA | $146 | $1,755 |
| AAA | $149 | $1,784 |
| American Modern | $202 | $2,422 |
| State Farm | $208 | $2,494 |
| USAA | $216 | $2,590 |
| Homesite | $244 | $2,928 |
| Farmers | $269 | $3,228 |
| Allstate | $284 | $3,410 |
| Nationwide | $323 | $3,872 |
| Chubb | $408 | $4,893 |
| Travelers | $525 | $6,300 |
| Progressive | $532 | $6,381 |
Cost of Home Insurance After a Claim: Bottom Line
Filing a home insurance claim raises your premium, and the increase typically lasts three to five years. Homeowners with one claim in five years pay an average of $3,961 per year, which is 16% more than the $3,417 claim-free average. Two claims push the average to $4,418. Your costs depend on your insurer, the type of claim and your coverage level. Compare quotes from at least three providers after filing a claim, since rates vary by thousands of dollars across insurers. AIG Insurance, Amica and CSAA offer the lowest premiums for homeowners with claims on their record.
How Much is Home Insurance After a Claim: FAQ
These are the most frequently asked questions about home insurance costs after filing a claim.
How much do home insurance rates increase after a claim?
Homeowners with one claim in the past five years pay an average of $3,961 per year, compared to $3,417 for claim-free policyholders. Two claims raise the average to $4,418 annually.
How long does a claim affect my home insurance rate?
Most insurers apply a rate surcharge for three to five years after a claim. The claim stays on your CLUE report for up to seven years.
Which insurer has the lowest rates after a claim?
AIG Insurance offers the lowest average annual premium after two claims at $1,408 for a policy with $250,000 in dwelling coverage. Amica and CSAA are the next cheapest options.
Does the claim amount affect how much my rate goes up?
Yes, larger payouts usually lead to bigger rate increases. A $25,000 water damage claim will likely raise your rate more than a $3,000 wind damage claim.
Will my rates go back down after a claim?
Most insurers remove the claim surcharge after three to five years if you don't file additional claims. Once the surcharge period ends, your rate should drop closer to claim-free pricing.
Home Insurance Rates After a Claim: Our Methodology
Home insurance premiums vary by thousands of dollars for the same property, and claims history can shift those costs even further. We partnered with Quadrant Information Services to collect premium data from major national and regional insurers across all 50 states, comparing rates for homeowners with zero, one and two claims in the past five years. This analysis covers more providers than most homeowners see when shopping on their own, showing whether a quote is competitive or overpriced for a given claims history.
Our profiled homeowner is 41 to 60 years old with a credit score in the 769 to 792 range, representing a low-risk profile most insurers use as a pricing baseline. The home is a wood-frame house built in 2000 with a composite shingle roof and standard safety features like smoke detectors and deadbolts. The standard coverage package includes $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in personal liability coverage and a $1,000 deductible. We collected quotes at each claims history level, from claim-free to two claims in five years, to show how filing a claim changes what you pay. Your actual premium depends on your home's age, construction quality, exact claims history and coverage limits, but this baseline shows what standard pricing looks like across the market.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.