Report: R.I.ers pay 8% more for insurance after making claim

PROVIDENCE – Rhode Island homeowners pay 8 percent more for homeowner’s insurance after making a claim, according to a new insuranceQuotes.com report, a figure that is below the national average of 9 percent.
The report said that if Rhode Islanders file a second claim, rates increase 27 percent, compared with 20 percent nationally. That’s better than in Michigan, where a second claim will increase insurance by 71 percent, the report stated.
The state with the highest increase after filing one claim is Wyoming at 32 percent, followed by Connecticut at 21 percent, Arizona at 20 percent, New Mexico at 19 percent and California, 18 percent, the report said.
In Connecticut for example, several natural disasters that occurred from 2010 to 2013 resulted in five federal disaster declarations, causing insurers to adjust rates for three years of expensive claims, Donna Tommelleo, spokeswoman for the Conn. Insurance Department, said in the report.
Those events included two of the worst winters on record, resulting in hundreds of roof collapses, along with Tropical Storm Irene and a freak October nor’easter after Superstorm Sandy.
In Texas, home insurers are not allowed to increase premiums after one claim. The next-lowest increases were found in New York and Massachusetts at 2 percent, then Florida with 3 percent and Vermont, 4 percent.
“Homeowners need to be really careful when filing claims,” Laura Adams, insuranceQuotes.com’s senior analyst, said in a statement. “Even a denied claim can cause your premium to go up. Make sure to know your policy’s specific guidelines and only file a claim when absolutely necessary. Winning a small claim could actually cost you money in the long run.”
Nationally, the most expensive claims are liability claims. A single liability claim causes premiums to rise by an average of 14 percent, with theft, vandalism and fire not far behind. Medical claims are the cheapest at a 2 percent average increase.
According to the National Association of Insurance Commissioners, homeowner’s insurance costs an average of $978 per year in the United States, so a single liability claim adds an average of $137 to that bill.
Averages are based on a single-family, 1,800-square-foot, 2-story home built in 1976 with the following insurance coverage limits: $144,000 dwelling, $100,000 liability, $500 deductible. Data is based on making one home insurance claim within a 12-month period.
The report is available HERE.

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