If you’ve noticed your homeowners insurance premium going up recently, you’re not alone. Across Pennsylvania and much of the country, insurance rates have been climbing due to rising repair costs, severe weather events, and higher claim payouts. But there’s another important factor that homeowners don’t always consider—your personal claim history.
While filing a claim may seem like the obvious step after minor damage, it’s important to understand how doing so can impact your future rates—and even your ability to sell your home.
Claims Can Follow the Property
When you file a homeowners insurance claim, it becomes part of a record known as a CLUE report (Comprehensive Loss Underwriting Exchange). This report tracks claims for both the homeowner and the property itself. That means if you make a claim, it can stay tied to your home’s address for up to seven years—even after you sell.
When a buyer applies for homeowners insurance, the insurer often reviews the property’s CLUE report. If there have been multiple or recent claims (especially for issues like water damage, mold, or fire), the insurer may:
- Charge higher premiums to cover the added risk
- Require additional inspections or documentation
- Or in some cases, decline coverage altogether
This can make your home less appealing to buyers—or even delay the sale if the buyer struggles to secure affordable insurance.
Exercise Caution Before Filing a Claim
Not every incident is worth filing a claim for. For example, if the repair cost is only slightly above your deductible, it may make more financial sense to handle it out-of-pocket. Frequent or small claims can raise your premiums and flag you as a higher-risk homeowner.
If you’re thinking about selling in the next year or two, take an extra moment to talk with your insurance agent before filing a claim. They can help you weigh the pros and cons and understand how a claim might affect both your current rates and your home’s marketability.
Transparency Matters
Even though claims history can influence a buyer’s insurance options, transparency remains key. If you’ve had a claim, it’s best to disclose the issue and show documentation of professional repairs. Buyers tend to feel more confident when they see that past issues were properly resolved.
The Bottom Line
Homeowners insurance claims can have a lasting impact—on your rates and on a future buyer’s ability to get coverage. If you’re planning to sell soon, exercise caution before making a claim and talk to both your insurance agent and your realtor. With the right guidance, you can protect your investment today and keep your home sale on track tomorrow.