If you’ve recently filed a home insurance claim, you may be thinking that once you receive the settlement check and make repairs, then the process is done. Unfortunately, that’s not the case. After you file a home insurance claim, the claim doesn’t just disappear: it goes onto your homeowner’s insurance record.
Your homeowner’s insurance record is a detailed history of your past losses and payments, which your provider then uses to set rates, assess your risk levels, and determine insurance eligibility. Never heard of this before? We’ll, we’re sorry to be the ones to tell you that your insurance provider is not going to let you just take the money and walk away! They’re always looking for ways to make you pay more for your misfortune.
But what does this mean for you, the policyholder? Read on to learn how long a home insurance claim stays on your record, the impact it has on your policy, and ways to check your record.
How Long Does a Home Insurance Claim Stay on Your Record?
It may seem like filing an insurance claim will haunt you forever. And while it’s true that insurance providers like to hold things against you (it’s how they justify unfairly raising their rates), an insurance claim will only stay on your record anywhere between 5 and 7 years. However, the exact amount of time it lingers on your record depends on a few factors.
Factors That Determine How Long Home Insurance Claims Stay on Your Record
- The type of claim you file: How long your claim stays on your record can depend largely on the type of claim. Fire damage claims, for example, signal to them that you are more “high-risk” than a water damage claim might, so they’ll keep claims on your record for longer.
- How frequently you file claims: If you’re a homeowner who has filed lots of claims in the past, your insurance company might take longer to remove claims from your record.
- The claim size: An expensive property claim requiring a lot of repairs will likely stay on your record longer. For example, a $50,000 property claim may stay for the full 7 years, while a smaller claim costing $2,000 may disappear within 5.
- Your insurance provider’s practices: Every insurance provider has its own rules regarding how long claims stay on your record. Some insurance companies will keep them on longer, while others may be more forgiving. (Although the majority are unlikely to make decisions in your favor.)
- State regulations: It’s important to remember that insurance laws are set by your state. For example, in the state of Wisconsin, while there are no specific regulations about how long claims must be on your record, your provider must maintain records for a minimum of 5 years in case they need to be corroborated.
How Do I Check My Home Insurance Claim History?
If you want to see if a claim is still lingering on your insurance record, you can ask for a Comprehensive Loss Underwriting Exchange (CLUE) report. This report is a tool used by many insurance companies to set rates, as it will track previous claims filed for your property.
A CLUE report includes:
- Your policy number
- Your previous claim numbers
- The date of every loss and claim
- The cause or type of loss (ex: fire, water, storm)
- The outcome of the claim (i.e., whether it was covered or denied)
- The settlement amount (if applicable)
According to the Fair Credit Reporting Act (FCRA), you are allowed to get one free CLUE report a year. To do so, you can request your report online from LexisNexis, the research company that hosts the CLUE database. You should get your report within two weeks of submitting your request.
However, it’s important that if you suspect any errors in your clue report, you should report them to LexisNexis, who will then conduct a free investigation. Errors or claims that are incorrectly lingering on your record could mean your premiums are higher than they should be, so it’s worth it to take the time to double-check yours.
Note: If you don’t want to use CLUE, A-PLUS (Automated Property Loss Underwriting System) is another major insurance claims database. You can also request a report from them once every 12 months.
Is it Bad to Have Claims on Your Home Insurance Record?
The short answer is no: it’s not necessarily bad to have claims on your home insurance record. However, having claims on your record can cause your monthly premiums to go up, typically by around 5% to 10%. The table below shows how much you can expect your claim to go up, depending on the type of claim submitted:
| Type of Claim | Claim Paid Out | Average Annual Rate Before Claim | Average Annual Rate After Claim | Percent Increase |
| Wind | $12,000 | $2,267 | $2,391 | 5% |
| Liability | $31,000 | $2,267 | $2,398 | 6% |
| Theft | $5,000 | $2,267 | $2,414 | 6% |
| Fire | $80,000 | $2,267 | $2,397 | 6% |
Source: Bankrate.com. Average rates based on claims filed on home insurance policies with $300,000 in dwelling coverage.
However, just because something is on your insurance record for a long time doesn’t mean your insurance company will look at it. Most of the time, insurance companies only look at the last three years of claim history when deciding your premium. That means if you have a claim that has been on there for more than three years, it might not even be considered.
How Many Claims is Too Many to Have On Your Record?
Every insurance company is different, but most of the time, having more than one claim within a five-year period can cause your rates to go up. More claims than that, and some insurance companies will deny you coverage.
If this seems unfair, it’s because it is. Insurance companies don’t care if you’re making legitimate claims. They’re trying to make as much money as they can, and they can’t do that if they’re paying you for repairs. (They are a $175 billion industry, after all!)
Is There a Way to Stop Insurance Claims From Staying On Your Record?
Unfortunately, if your homeowner’s insurance claim is valid and accurate, there is no way to remove it from your record until the duration determined by your insurance provider is over. However, if you want to stop an insurance claim from going on your record to begin with, you can try to:
- Dispute inaccurate claims: Sometimes, a claim can end up on your record that you didn’t even file. That’s why it’s important to request CLUE reports and dispute any inaccuracies.
- Withdraw a claim: If you’re filing a claim for damages that are less than or equal to your deductible, it may not be worth having that on your record. If that’s the case, there may still be time to withdraw your claim.
- Perform preventative maintenance: The only way to keep claims from going on your record is to stop them from ever happening. Schedule or perform yearly maintenance to prevent your home from needing major repairs.
However, it’s important to remember that you’re paying a monthly insurance premium for a reason, and you deserve to file claims whenever you need them. Don’t let the fear of your homeowner’s record stop you from getting the money you deserve.
Thinking About Filing a Home Insurance Claim? Contact Fortitude Public Adjusters
We understand that insurance claims can be stressful, especially when you’re worried about the impact it will have on your record. Luckily, you don’t have to navigate the process alone.
At Fortitude Public Adjusters, we’ll make sure your insurance adjuster doesn’t over-dramatize the extent of your property damage in order to justify raising your rates. We’ll gather documentation, communicate on your behalf, and make sure you get the money you’re rightfully owed (without any unnecessary drama). Just contact us today for a free consultation, and get started on the road to recovery!
