The short answer is that a denied home insurance claim may count against you. Two important factors that lead to a denied claim counting against you or not are your location and your insurance provider.
Some states give insurance companies the ability to factor in denied claims to the premium rate that is assessed and therefore, some companies choose to assess higher rates at the next policy renewal after a denied claim.
There are some states that prohibit insurance companies from raising premium rates on a homeowner as the result of a denied claim. If you are in a state that has this law in place, you will not see a premium rate increase if you have a denied home insurance claim.
It can be devastating to have damage occur to your home and file a claim only to discover that not only is the insurance company denying the claim, leaving you stuck with the full cost of repairs but now your insurance policy premium rate is raised on you.
It is important to read through your policy to see what may happen as the result of a denied claim as well as what you are covered for so you know when it may make sense to not file a claim if there is a good chance it would be denied. You should also check with your insurance provider to learn more about their policy for raising rates on denied claims as well as what options may be available to you to protect yourself from an increased premium rate.
Summary
Denied claims can count against you depending on where you live and your insurance provider’s policy on denied claims. Knowing what damages are covered and what damages could be denied can help you avoid a denied claim and potentially a higher premium rate at your next policy renewal.
