Should I file a home insurance claim?
On $4,500 of damage with a $1,500 deductible, a claim pays $3,000; a 20 percent surcharge for three years on a $2,066 premium costs $1,240.
Independent site, not an insurer or a broker. ZIP code figures are the Treasury's for 2018 to 2022.
Example, not your result yet· change a figure to see yours
Filing leaves you ahead by
$1,760
The claim pays $3,000; the surcharge would cost $1,240 over 3 years.
| Claim payment after deductible | $3,000 |
| Extra premium over the period | $1,240 |
| National median claim paid, 2018 to 2022 | $15,105 |
A surcharge is not the only effect: claims history can also weigh on a renewal decision. The national figure is the median ZIP code of the Treasury file.
Compiled by Radif Partners · Where the numbers come from · Treasury FIO data, BLS indexes and the texts cited below · not a quote
A claim is worth filing when what it pays clearly exceeds what it will cost you later. The payment is the damage minus the deductible. The later cost is a surcharge or a lost claim-free discount at renewal, for the number of years your insurer counts claims, and in some cases the risk of a nonrenewal. With $4,500 of damage and a $1,500 deductible, the claim pays $3,000. If it raises a $2,066 premium by 20 percent for three years, that costs $1,240, so you come out ahead by $1,760. On $25,000 of damage the claim is clearly worth it, ahead by $22,260. Real claims are large: the average claim paid in the median ZIP code of the Treasury file was $15,105 over 2018 to 2022. Surcharge rules vary by insurer and state; the 20 percent here is an assumption you can change.
The arithmetic of a small claim
Three numbers decide it: the damage, the deductible and the extra premium the claim could bring. The first two give the payment. The third is harder to know, because insurers do not publish their surcharge schedules in a form a homeowner reads, and some apply none for one claim but drop a claim-free discount instead. The calculator asks you for a percentage and a number of years; use what your insurer or agent tells you, or try a few values to see where the answer flips.
| Damage | Claim pays | Surcharge cost over 3 years | Net |
|---|---|---|---|
| $2,500 | $1,000 | $1,240 | -$240 |
| $4,000 | $2,500 | $1,240 | +$1,260 |
| $6,000 | $4,500 | $1,240 | +$3,260 |
| $10,000 | $8,500 | $1,240 | +$7,260 |
| $20,000 | $18,500 | $1,240 | +$17,260 |
The pattern holds for most premiums: claims a little above the deductible tend to cost more than they pay, while a claim several times the deductible is what insurance is for. The break-even point moves up with a high premium, a large surcharge or a long look-back period.
Your claim against the surcharge
Example, not your result yet· change a figure to see yours
Filing leaves you ahead by
$1,760
| Claim payment after deductible | $3,000 |
| Extra premium over the period | $1,240 |
| National median claim paid, 2018 to 2022 | $15,105 |
More than the surcharge
A claim also goes into the industry claims databases that insurers consult when you apply elsewhere, usually for several years. Two or three claims in a short period, even small ones, are a common reason for a nonrenewal, which the nonrenewal page measures area by area. Water damage claims weigh more than others with many insurers, because they are frequent and often repeat. An inquiry about coverage that does not become a claim may or may not be recorded, depending on how it is reported; asking your agent a general question is safer than opening a claim file to ask.
When to file without hesitation
Large or uncertain damage should be reported at once. A roof leak that has reached the ceiling, a fire, a burst pipe that soaked the floors or a tree on the house can turn out much larger than it looks, and most policies require prompt notice and steps to prevent further damage. Liability is another case: if someone is hurt on your property, notify the insurer even if no one has asked for money, since late notice can weaken your coverage. The calculator is for the small, clear repairs you could pay yourself.
How big claims are where you live
The Treasury file gives the average claim paid in each ZIP code, losses paid divided by paid claims, over 2018 to 2022. The median ZIP code was at $15,105. State medians range from $11,373 in Vermont to $29,852 in Alaska; California and Oregon follow at $23,238 and $21,424. Those averages include total losses from fire, so a typical repair claim is smaller than the figure suggests, but they show that most paid claims are far above a $1,000 or $2,500 deductible.
How often claims are paid
Claims are rarer than many people think. In the median ZIP code of the Treasury file, 4.5 claims were paid per 100 policies a year from 2018 to 2022, about one claim per policy every 22 years on average. In hail states the rate is close to double. An insurer looks at your history against that background: one claim in five years rarely stands out, three do. Before filing, ask yourself whether this repair is worth spending one of the claims your record can carry.
If you decide not to file
Pay for the repair, keep the invoice and photos, and fix the cause, such as a failing water heater or a loose shingle. If the same damage comes back larger later, the insurer will ask about the earlier event, and a documented repair helps. Do not let a small leak go: most policies exclude damage from continuous or repeated seepage over weeks, so a delay can turn a covered claim into an excluded one.
Raise the deductible instead
If you already know you will not file claims below a few thousand dollars, a higher deductible makes that decision official and lowers the premium every year. Keep the difference in savings so a repair below the deductible does not strain the budget. Check that a percentage wind or hurricane deductible, if your policy has one, is not already much higher than the deductible you are choosing, as the hurricane deductible page shows. For roof damage, check whether the roof is settled at actual cash value first: the roof calculator shows what an older roof is worth to the insurer.