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Dawn Said:

Can you claim the cost of future increases to premiums (on a home insurance policy) as a result of a claim?

We Answered:

I'm not sure if I even get your logic here. Since you had a claim your price will go up, so you want the insurance company to indemnify you for the cost of the price increase? First off why would they write a contract like that? They wrote the contract, and the main reason your price goes up when you have a claim is your relative risk goes up compared to those that do not. So it would make absolutely no sense for them to then pay you for the increase, it would make more sense if they did not increase the cost of insurance, than to increase it then pay you for what they increased it...

I guess the main thing is you did not lose the low price in the event of a burglary, that was lost because you placed a claim against your insurance policy. You were in no way obligated to turn in a claim on the burglary. So in that sense hopefully you can see that the burglary itself and you turning in the claim are two separate actions.

I was not trying to be insulting at first, it is just obviously since there are time limits on an insurance contract, that is the only time that they insure for. They are not insuring your future insurance costs, that is why they reserve the right to raise your premium.

Hope that helps!

Gregory Said:

Is it legal for Insurance Companies to increase premiums AFTER bill has been paid in full ?

We Answered:

Well, you can't lock in an incorrect rate, by cutting a check.

Sounds to me, like you're misunderstanding what's happening here.

You would have gotten a renewal policy. What was the premium on the renewal policy? It's very possible that the mortgage company shorted the check.

It's also possible that you have TWO policies - one homeowners, one flood. Or maybe windstorm. And that these are two different checks, for two different policies.

In any case, the rate an insurance company has to charge for homeowners, is filed with the state insurance commissioner. With no coverage change, the rate is NOT going to change from the renewal premium. What you think happened, didn't happen. They did NOT increase your renewal premium from $530 to $1301.

You will have to look at your renewal policy, and last year's policy, to see what the actual premiums are. And maybe call the escrow department, to ask about those checks.

Cheryl Said:

Will submitting a minor claim increase a home owners insurance premium?

We Answered:

When it comes to premium increases due to claims, most insurance companies do not factor in dollar amounts. So your rate will go up the same regardless if its a $20,000, or a $2 claim.

Some companies will "forgive" your first claim. Ask your agent if you qualify for something like that. Otherwise, it will be somewhere in the ballpark of a 30% increase for the next few yrs.

If you believe that your neighbor is at fault and you can find sufficent evidence, than you may want to sue for the damage or have your neighbor file an insurance claim.

Leslie Said:

What is the best "answer" to tell insured that their insurance premium increased (Auto & Home). THX?

We Answered:

Homeowners: With all the recent catastrophes in the world - the cost of building supplies has risen, so the cost of rebuilding your house after a loss has risen - your insurance cost has risen to cover that.

Auto: This is a bit harder... usually I look for changes on the policy - different car? newer car? points on a driver? new driver with less experience on the road?
Usually the vehicle # is a good answer - the rates on a certain vehicle are set by the state - and are set by:
percentage of accidents & the severity of the accidents in that specific vehicle, the likeliness of the vehicle being stolen (and the are you live in has impact on that as well), the cost of parts is dependant on vehicle - for example.. Fords, Chevys and Hondas are least expensive to replace parts on... Mitsubishis and Nissans are MOST expensive to replace parts (unless they have a sports car)