See how filing insurance claims affects your homeowners premium over time. Calculate the long-term cost of frequent claims vs. paying out-of-pocket.
Every insurance claim you file can increase your premium for 3–7 years. While insurance exists to be used, filing frequent small claims often costs more in premium increases than the claim payments themselves. Understanding this trade-off is essential for smart insurance management.
Insurers use a Comprehensive Loss Underwriting Exchange (CLUE) database that tracks all claims made against your property for 7 years. Even claims that don't result in payment are recorded. Multiple claims can also lead to policy non-renewal.
This calculator helps you compare the cost of filing a claim versus paying out-of-pocket. These are educational estimates — actual premium increases vary by insurer, claim type, and your overall claims history. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
Filing a small claim today might cost you thousands in premium increases over the next 3–7 years. This calculator shows you the long-term impact so you can make informed decisions about when to file and when to self-insure. Having a precise figure at your fingertips empowers better planning and more confident decisions.
Premium Increase Per Claim ≈ 7–25% of annual premium First Claim Surcharge ≈ 7–10% Second Claim Surcharge ≈ 15–20% Third+ Claim Surcharge ≈ 20–35% Total Extra Cost = Annual Surcharge × Surcharge Years Net Benefit = Claim Payout − Total Extra Cost
Result: Net loss of $250 over 5 years
Claim payout: $2,500. With 1 prior claim, the surcharge for a second claim is approximately 15%, or $270/year. Over 5 years: $270 × 5 = $1,350. Plus loss of claims-free discount (~$200/year × 5 = $1,000). Total premium impact: $2,350. Net: $2,500 − $2,350 = only $150 benefit, after accounting for the deductible of $1,000 the net is -$250.
Filing a $1,500 claim on a $1,000 deductible yields only $500. But the premium increase of 8–10% on a $1,800 policy ($144–$180/year) over 5 years costs $720–$900. You come out behind by filing the claim. The rule of thumb: only file claims that are significantly above your deductible.
Reserve insurance for major losses ($5,000+). Self-insure small repairs with an emergency fund. Choose a higher deductible to lower premiums and reduce the temptation to file small claims. This approach keeps your claims record clean and your premiums low.
You can request a free CLUE report at LexisNexis.com/consumer to see what claims are on your record. Review it annually and dispute any errors. Also check CLUE before buying a home to see the property's claims history.
On average, a single claim increases premiums 7–10% for 3–7 years. A second claim within 3 years can increase premiums 15–20%. Three or more claims may result in 25–35% surcharges or policy non-renewal.
Claims are reported to the CLUE database and remain for 7 years. However, most insurers only surcharge premiums for 3–5 years after a claim. Even after the surcharge period, the claim is still visible to other insurers.
Yes. Insurers can non-renew your policy (not renew at the end of the term) for excessive claims, typically 2–3 claims within 3 years. This makes it harder and more expensive to find new coverage.
Many insurers offer a "first claim forgiveness" feature that prevents a premium increase after your first claim if you've been claims-free for 3–5+ years. Some charge extra for this feature; others include it automatically.
Weather claims are generally more favorably viewed than non-weather claims, since the weather is beyond your control. However, if the damage is close to your deductible, the small payout may not justify the potential premium impact.
Claims are associated with both the property and the person in CLUE. If you sell your home, the property's claims history stays with it. Your personal claims history follows you to your next property.