‘This was not right’: Fort Worth grandma slapped with huge rate increase after home insurance claim she never made — and it took some extra help to get it corrected

Reasons insurance rates change — including claims

Most homeowners have insurance for their primary residence. While it is required for those with an active mortgage — to protect the lender in the event of an accident — it’s always a good idea to have a policy in case of an accident or natural disaster.

Your homeowner's insurance rate is based on several factors: the age of your home, its condition when purchased, its location and how much it would cost to rebuild. Your premium may increase if you make major home improvements that increase value, the cost of building materials increases or if you have increased risk features, like a trampoline or a pool.

Your credit and claim histories also affect the premium. Insurance companies use a credit-based insurance score to predict future claims. The higher your risk, the more you could pay for insurance.

A previously filed claim on your record may also cause insurance rates to increase as it suggests you might file for more in the future. While one claim often results in a higher price, several could cause the insurance company to drastically raise premiums or send homeowners a notice of non-renewal.

Unfortunately, a homeowner’s claim history can follow them when they decide to shop around for a new insurance provider. Specialty consumer reporting companies like CLUE keep track of both auto and home claims filed over a seven-year period, which is then provided to insurance companies upon request.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

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Avoiding rate hikes over erroneous or canceled claims

Insurance claims are the one thing homeowners can control when it comes to their insurance premiums. When looking at a loss on your home — from natural disaster to burglary — the first question to ask is always: “Does this situation require an insurance claim?”

Before calling the insurance company, start doing your own research. If there were no injuries, nobody else’s property was affected and the repair or replacement amount is less than your deductible, then there’s no need to file a claim. Paying out of pocket to fix the problem is not only cheaper but can prevent your rates from going up. Even if Lane’s case was an outlier, you can always consult your insurance company, too, if something unexpected comes up.

In the case where there’s an error on your policy, call the insurance company to ask for more information, including a claim number, when the alleged claim was filed, and how much was paid on the claim. You can also request to see your CLUE report directly from LexisNexis​​ to see if claim information was added to your consumer report.

Should your insurance company be unwilling to work with you to resolve the issue, you still have options. Filing a complaint with your state’s insurance commissioner or attorney general can help sort out consumer protection issues, including erroneous insurance claims.