Will filing an insurance claim raise my premium?

Often, yes — especially for small claims. Insurers evaluate risk using claim history, and a single homeowners claim can raise your premium by roughly 9% to 20% according to Bankrate, with some claim types like fire or liability driving even larger increases. Filing can also cause you to lose claims-free discounts and may make it harder to switch carriers later.

How long does a homeowners claim stay on my record?

Claims appear in the Comprehensive Loss Underwriting Exchange (CLUE) database, maintained by LexisNexis, for up to seven years. CLUE is tied to both you and the property, so claims filed by previous owners can appear when you buy a home. Even denied or withdrawn claims may show up. You are entitled to one free CLUE report per year under federal law.

When should I definitely file an insurance claim?

File when the loss is significant — major water damage from burst pipes or roof leaks, fire or smoke damage, storm damage to roofs or structures, liability incidents involving injuries on your property, and large theft losses. Insurance is designed to protect you from substantial financial loss, and these are exactly the events it should cover.

When is it better to pay for repairs out of pocket?

Consider paying out of pocket when the repair cost is close to your deductible, the damage is minor or cosmetic, you have filed other claims recently, or you are unsure if the claim will exceed your deductible. Keeping your claims history clean helps maintain lower premiums over time.

Can calling my insurance company about a possible claim count as a claim?

It can. Some insurers may record an inquiry as a claim, depending on how the conversation is handled. The Washington Office of the Insurance Commissioner recommends telling the representative that you do not want to file a claim — you only want to know if a potential loss is covered. Working with an independent agent first, instead of calling the carrier's claims hotline, helps keep your inquiry from accidentally becoming a filed claim.

Will Filing an Insurance Claim Raise Your Rates? When to File and When to Pay Out of Pocket

Q: How do claims-free discounts work?

Many insurers reward homeowners who avoid filing claims with discounts ranging from 5% to over 20%, depending on the carrier. Some insurers begin the discount after three claims-free years, while others require five or more. Filing even one small claim can reset that clock and cost you years of accumulated savings on your premium.

Will Filing an Insurance Claim Raise Your Rates?

When It Makes Sense to File a Claim — and When It May Cost You More

One of the most common questions homeowners ask is:

*"Will filing an insurance claim increase my premium?"*

The honest answer is: sometimes — especially if the claim is small.

Insurance is designed to protect you from major financial loss, not every minor repair. Filing multiple small claims can sometimes lead to higher premiums or make it harder to switch insurance companies later.

Understanding when to file a claim and when to handle repairs yourself can help you keep your insurance affordable over the long term.

Do Small Insurance Claims Increase Your Premium?

In many cases, yes.

Insurance companies evaluate risk using claim history. If multiple claims appear on a property or policy within a few years, insurers may consider that property a higher risk to insure.

According to Bankrate, a single homeowners claim can raise your premium anywhere from 9% to 20%, depending on the type of claim and your insurer. Some sources report increases of 20% to 40% for certain claim types like fire or liability.

This can lead to:

Higher premiums at renewal

Loss of claims-free discounts

Difficulty switching insurance carriers

In some cases, non-renewal of the policy

Even relatively small claims can contribute to this history.

For that reason, many insurance professionals recommend saving claims for significant losses rather than minor repairs.

How Claims-Free Discounts Work

Many insurers reward homeowners who avoid filing claims. According to Insurance.com, claims-free discounts can range from 5% to over 20% depending on the carrier and how many years you've gone without a claim. Some insurers begin the discount after three claims-free years, while others require five or more.

Filing even one small claim can reset that clock and cost you years of accumulated savings on your premium.

The First Thing to Consider: Your Deductible

Before filing a claim, always compare the repair cost to your deductible.

For example:

Repair cost: $1,500

Homeowners deductible: $1,000

Insurance payout: $500

In this scenario, filing a claim may not be worth the potential impact on future premiums.

Many homeowners choose to handle smaller repairs themselves if the claim amount would be close to the deductible.

When You Should Definitely File an Insurance Claim

Insurance is most valuable when it protects you from large, unexpected losses.

You should strongly consider filing a claim when you experience:

Major water damage — burst pipes, appliance failures, or roof leaks causing structural damage

Fire or smoke damage — even partial fire damage can quickly exceed tens of thousands of dollars

Storm damage to roofs or structures — hail, wind, and fallen trees are among the most common homeowners claims

Liability incidents involving injuries — if someone is injured on your property, the financial exposure can be significant

Large theft losses — especially if high-value items are involved

These events can create significant financial risk, which is exactly what insurance is designed to cover.

When It May Be Better to Pay for Repairs Yourself

In some cases, paying out of pocket may make more financial sense.

This may include situations where:

The repair cost is close to your deductible

The damage is minor or cosmetic

You have filed other claims recently

You are unsure if the claim will exceed your deductible

Keeping your claims history clean can sometimes help maintain lower premiums over time.

Your Claims History Follows You: Understanding CLUE Reports

When you file a claim, it gets recorded in a database called the Comprehensive Loss Underwriting Exchange (CLUE), maintained by LexisNexis. Insurance companies use CLUE reports when you apply for new coverage or at renewal to evaluate your risk.

Key facts about CLUE reports:

Claims stay on your record for up to seven years

Even denied or withdrawn claims may appear on the report

CLUE reports are tied to both you and your property — claims filed by previous owners can appear when you buy a home

You are entitled to one free CLUE report per year under federal law

This is one more reason to think carefully before filing a small claim. Once it's in the CLUE database, it can affect your rates and insurability for years.

Talk to Your Insurance Agent Before Filing a Claim

One of the smartest things you can do is call your insurance agent before filing a claim.

A good agent can help you:

Estimate whether the claim will exceed your deductible

Explain potential impacts on your premiums

Review your policy coverage

Help you decide whether filing a claim makes sense

This is especially important because some insurers may record even a phone inquiry as a claim if you're not careful about how the conversation is handled. The Washington Office of the Insurance Commissioner recommends telling the insurance representative that you do not want to file a claim and just want to know if a potential loss is covered by your policy. Working with an independent agent — rather than calling the carrier's claims hotline directly — helps ensure your question stays an inquiry and doesn't accidentally become a filed claim.

Once a claim is formally submitted, it may appear in industry claim databases used by insurers.

Getting advice first can help you make the best decision.

The Bottom Line

Insurance is one of the most important financial protections you have. Using it wisely helps ensure it remains affordable and available when you truly need it.

If you're ever unsure whether to file a claim, contact your insurance advisor first. At Maxwell Insurance Group, we help homeowners across Idaho, Oregon, Washington, and Arizona make informed decisions about their coverage every day.