Factors That Affect Whether Your Insurance Premium Will Increase

1. How Your Insurance Company Views the Claim

• If your insurer pays out a large claim, they may classify you as a higher-risk homeowner and raise your premium.
• Even though the fire originated from another property, the fact that your home suffered a major loss may trigger a premium adjustment.

2. Subrogation Results & Recovery from the Builder’s Insurance

• If your insurance company recovers 100% of its payout from the builder’s insurance, they are less likely to raise your rate.
• If subrogation is unsuccessful or only partially recovered, your insurer may increase your premium to offset their loss.

3. Your Insurance Provider’s Policy on Fire-Related Claims

• Some insurance companies don’t raise rates for one-time “no-fault” incidents, but others will.
• If your neighborhood has multiple fire claims, insurers may adjust risk ratings for all homeowners in the area.

4. Your History of Previous Claims

• If this is your first claim, your increase (if any) may be minimal.
• If you have prior claims, your insurer may use this as a reason to increase rates significantly.