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State Farm has the best home insurance rates if you’ve had a claim, with an annual average premium of $2,376. Amica is a close second, with an average rate of $2,815.

Filing a claim means something has gone wrong and you’ve had to rely on your home insurance for financial protection. Unfortunately, having a claim on your record often translates to higher premiums because insurance companies view it as a predictor of more claims in the future. 

If you’ve filed a claim against your home insurance and are facing higher rates as a result, it’s a good time to shop around.

Read on to find out how and what types of claims might increase your rates the most and which companies have the best rates for homeowners with a past claim.

Key Takeaways

  • State Farm has the best overall rates for home insurance after you’ve filed a claim.
  • After a claim, your home insurance rates will increase, so it’s a good time to shop around.
  • Claims increase your premium because insurance companies now view you as riskier to insure.

Best cheap home insurance after a claim

State Farm has the cheapest home insurance rates after a claim, with average annual premiums of $2,376. State Farm also earned a high score in our best home insurance companies rating for 2024. Amica is a close second, with higher rates but a higher overall rating.

The following table shows the top 10 insurance carriers with the cheapest rates after a claim.

CompanyAverage annual premium with a claimBest Insurance Companies of 2024 score
State Farm$2,3764.32
Amica$2,8154.6
Allstate$2,9374.24
Erie$3,4004.63
American Family$3,4204.24
Nationwide$3,8363.9
Progressive$3,9333.43
Farmers$4,2013.77
Auto-Owners$4,2724.51
Travelers$4,7093.73

Average home insurance rate increase after a claim

Your rates will likely increase after you file a claim against your home insurance. The average annual increase in premiums after a claim is 33%, or $785 more per year compared to the national average home insurance rate of $2,582. Depending on the type of claim, you could face an even greater increase.

The following table shows different types of claims and how they might affect your home insurance costs. 

As you can see from the table, fire claims cause the biggest jump in premiums. Fire claims cause a 55% increase in insurance rates. Some theft, water and liability claims can also cause a significant spike in premiums, with rate increases of about 46%.

Weather claims cause the smallest increase because weather is out of the homeowner’s control.

Claim typeRates before claimRates after claimDifference
One fire claim$2,582$3,314$732
One liability claim$2,582$3,195$613
One medical claim$2,582$3,029$447
One theft claim$2,582$3,212$630
One water claim$2,582$3,223$641
One weather claim$2,582$2,983$401
Two fire claims$2,582$3,996$1,414
Two liability claims$2,582$3,764$1,182
Two medical claims$2,582$3,330$748
Two theft claims$2,582$3,749$1,167
Two water claims$2,582$3,766$1,184
Two weather Claims$2,582$3,215$633

Cheapest home insurance by type of claim

Your next renewal after filing a claim is a good time to shop around for better rates. Depending on the nature of your claim—whether for fire, theft or water damage—your premiums will increase, sometimes significantly. Based on your claims history, you may be able to find a different insurance carrier with the best rates.

We gathered data on claims rate increases and created the tool below to help you find the best rates in your state after you’ve had a claim.

Why do home insurance premiums increase after a claim?

“Premiums are based on the risk of future claims,” says Marc Ragin, associate professor,

Department of Insurance, Legal Studies and Real Estate at the Terry College of Business, University of Georgia.

“The No. 1 predictor of future claims is past claims. If you don’t have any past claims, then the insurance company thinks the risk of a claim is fairly low. Once you have a claim, though, the data indicates that you’re a higher risk for another claim in the future – and that increased risk translates into an increased premium.”

Certain claims, like fires, liability claims, theft and water damage, can significantly increase your premiums. The insurance company weighs the likelihood of your situation and the possibility of another claim when it calculates your new rates. 

Is it worth filing a home insurance claim?

In general, you should file a claim if the damage to your home exceeds your home insurance deductible, which is the amount you pay before the insurance pays. Even if it’s a little over the deductible, the rate increase that follows could leave you out-of-pocket in the long run.

“In most cases, I would recommend not filing a claim if the cost to repair the damage is below your deductible,” Ragin says. “The insurance company would increase your premiums because of the increased risk of future claims (as noted above), and you wouldn’t get any money for the claim.”

“The main exception to this advice is if there’s a possibility that the claim might ultimately be worse than initially anticipated. For example, maybe there’s hidden damage from the claim event that’s discovered while making repairs, which makes the claim much larger. You have a limited amount of time to report a claim under your homeowners insurance, and the clock starts ticking as soon as the loss event happens,” he says.

If you make a claim, remember you’ll first be responsible for whatever deductible you have on your policy.  For example: a tree falls on your house during a storm and causes $5,000 of roof damage. If you have a $1,500 deductible, you’ll be responsible for $1,500 in repairs and the insurance company will send a check for $3,500.

expert

What our expert says

Q: Why do insurance rates go up after filing a claim?

expert-image
Marc RaginDepartment of Insurance, Legal Studies, and Real Estate at the Terry College of Business, University of Georgia.
“The #1 predictor of future claims is past claims. If you don’t have any past claims, then the insurance company thinks the risk of a claim is fairly low. Once you have a claim, though, the data indicates that you’re a higher risk for another claim in the future – and that increased risk translates into an increased premium.”