How Do Claims Affect Homeowners Insurance Premiums?

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    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Insurance companies sometimes offer either a premium discount or a reduced deductible for every year that there aren’t any claims filed against the policy.  These discounts can become substantial as claims against homeowner’s policies are infrequent.  When a claim is small the money received (adjusted amount minus deductible) might be less than the discounts currently being applied.  In this case loss of those discounts would be much greater than the small recovery on a claim.
     
    Answered on March 18, 2014
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