Reviewed and approved by Samuel Corso, licensed Texas insurance agent.
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Will filing a home insurance claim raise your rates in Texas?
A home insurance claim can affect what you pay later, and the Texas Department of Insurance (TDI) publishes plain guidance on when. This guide walks through that guidance so you can weigh a claim before you file it.
The short version. Filing a home insurance claim in Texas can raise your premium. TDI says in Will my premium go up if I file a claim? that it depends on the type of claim and how many you file, and that home companies can't charge you more for claims for damage from natural causes, including weather. TDI's Home insurance guide says a company can raise your rates if you file two or more nonweather-related claims, and says in the same passage that the first two appliance-related water damage claims don't count if you've fixed the damage and it has passed inspection by a qualified inspector.
Here's what we'll cover: what TDI's tip sheet says about weather claims, the nonweather count tied to rates and nonrenewal, the conditions attached to appliance water claims, two things TDI says can't be charged for, how a CLUE report covers both people and houses, the deductible check TDI describes, the claim-free discount, and the timeline once you file.
What TDI says
TDI's tip sheet Will my premium go up if I file a claim? says home and auto insurance companies can raise your premium for filing most types of claims. The same page says you could also lose any discounts you're getting for being claim free.
The qualifier in that statement matters, because it covers most types of claims and not all of them. The page goes on to list the claims and contacts that companies can't charge you more for, and the sections below take them one at a time.
TDI's Home insurance guide adds a general point. In its list of things most companies consider when deciding on a premium, it says your premiums might be higher if you've had claims in the past.
For you, the answer turns on two things you can find out before you file. One is the type of claim, and the other is how many claims you have already filed.
The weather line
Weather damage has its own entry where TDI describes how a home insurance claim can affect what you pay in Texas. The tip sheet lists what home companies can't charge you more for, and one entry reads: "Claims for damage from natural causes, including weather."
The tip sheet does not go further than that wording, so it does not say how any particular loss would be classified. If you are unsure how a loss would be treated, that is a question for your insurance company.
The guide uses the separate term nonweather-related and does not say how it maps to the tip sheet's natural-causes wording. Its thresholds for rate increases and nonrenewal are written in terms of nonweather-related claims, which the next section covers.
Keep these points from those pages in mind:
- The two pages use different terms. If you have storm damage, the tip sheet's wording on natural causes is the place to start, and your company can tell you how it would classify the loss.
- A premium can change for other reasons. TDI's guide lists where you live among the things most companies consider, and says premiums are higher in areas that have more storms or crime. Our guide on why home insurance went up in Texas covers those factors.
What TDI's guide says about nonweather claims and nonrenewal
Two thresholds for nonweather-related claims on a Texas home policy appear in TDI's guide, one for rates and one for nonrenewal.
Both sit in one passage in the guide's list of reasons a company may nonrenew a policy, together with the notice step and the appliance condition: "You file three or more nonweather-related claims in three years. If you file two nonweather-related claims, the company must tell you that you’re in danger of nonrenewal. If it doesn’t, it can’t refuse to renew your policy because of a third claim. The first two appliance-related water damage claims don’t count if you’ve fixed the damage and it’s passed inspection by a qualified inspector. A company can raise your rates if you file two or more nonweather-related claims."
| Nonweather-related claims | What TDI's guide says, with the appliance condition from the same passage |
|---|---|
| Two | The company must tell you that you're in danger of nonrenewal; the same passage says the first two appliance-related water damage claims don't count if you've fixed the damage and it has passed inspection by a qualified inspector |
| Two or more | A company can raise your rates; the same passage says the first two appliance-related water damage claims don't count if you've fixed the damage and it has passed inspection by a qualified inspector |
| Three or more in three years | A company may nonrenew the policy, but it can't refuse to renew because of a third claim if it didn't give that warning after the second; the same passage says the first two appliance-related water damage claims don't count if you've fixed the damage and it has passed inspection by a qualified inspector |
In plain terms, the guide describes a warning that comes after the second nonweather-related claim and before a third can be used as a reason to nonrenew, and it leaves the first two appliance-related water damage claims out of the count if you've fixed the damage and it has passed inspection by a qualified inspector, which the next section covers. The guide does not define the term nonweather-related in that passage, so ask your company how it would classify a particular loss.
That makes your own count worth knowing, meaning how many nonweather claims you have filed and when you filed each one.
If you receive a nonrenewal or cancellation notice, our guides on home insurance non-renewal in Texas and what to do if your home insurance is canceled cover what comes next.
The appliance-water carve-out
Two TDI pages describe separate treatment for appliance-related water damage claims on a Texas home policy, and each one attaches a condition.
The tip sheet includes this in its list of what home companies can't charge you more for: "Appliance-related water damage claims, if the repairs have been inspected and certified, unless you have three or more claims in three years."
The guide covers the nonrenewal count: "The first two appliance-related water damage claims don’t count if you’ve fixed the damage and it’s passed inspection by a qualified inspector."
The two pages word the condition differently. The tip sheet refers to repairs that have been inspected and certified, and the guide refers to damage that has been fixed and has passed inspection by a qualified inspector. Neither page says who counts as a qualified inspector or what the certification looks like, so ask your company what it needs.
On both pages the treatment depends on the repair and the inspection. After an appliance leak, that makes the follow-up worth doing in order. Repair the damage once the company has seen it, since TDI's guide says permanent repairs before that may lead to a denial, then have it inspected and keep the record.
On the coverage side, TDI's When are water damage and mold covered by insurance? says most homeowner and renters policies cover sudden and accidental water damage, gives a burst pipe, a toilet overflow and a broken washer hose as examples, and says policies usually won't cover damage from gradual leaks. Our guides on water damage and mold coverage in Texas and whether homeowners insurance covers your AC unit go further into those losses.
What TDI's tip sheet says companies can't charge more for
TDI's tip sheet says home and auto companies can't charge you more for claims you file that the company didn't pay, or for calling your company or agent to ask questions about your policy or the claims filing process.
On unpaid claims, the tip sheet says the item includes claims the insurance company denied because your policy doesn't cover the damage. The guide makes a related point about renewal, saying a company may not refuse to renew your policy if you file a claim for something your policy doesn't cover.
On questions, that means you can find out your deductible, or whether your policy covers a type of loss, before you decide anything.
The guide also says companies can report information to the Comprehensive Loss Underwriting Exchange (CLUE) only if you filed a claim. That passage does not say whether a claim that wasn't paid appears on the report, which is one reason to read your own report, as the next section explains.
TDI says CLUE reports cover houses as well as people
A home insurance claims report can cover a house as well as the people who have owned it. TDI's guide says: "CLUE reports show the claims history of people and houses, regardless of who owned them, for the last seven years."
The guide says most companies use CLUE to learn your claims history, and that a company can charge you more or refuse to sell you a policy based on the information in your CLUE report. TDI's pages add the following:
- The CLUE period and the nonrenewal count. The guide's nonrenewal passage counts nonweather-related claims over a shorter period than the seven years it says CLUE reports cover. Our guide on switching home insurance companies in Texas covers moving to a new company.
- The record between companies. The tip sheet says that because most companies use CLUE, they can learn about home or auto claims you've filed, even if the claim was with another insurance company.
- Reading and correcting the report. The guide says you can challenge wrong information and can get a free copy of the report each year by calling LexisNexis at 866-312-8076.
If you are about to shop for home insurance, reading your own CLUE report first shows you what a company that uses CLUE may see. Because the guide says the reports show the history of houses regardless of who owned them, a home you bought may carry claims filed by a previous owner.
Before you file: the deductible and the repair cost
TDI's tip sheet says to find out how much your home insurance deductible is before you file a claim, and also to get repair estimates. It says the insurance company will subtract the amount of your deductible from your claim payment, and adds: "If the cost of repairs is about the same or less than your deductible, you may decide it’s not worth filing a claim."
An example of how a deductible works appears in the guide. On a $1,000 claim under a policy with a $300 deductible, the insurance company deducts $300 and pays $700.
The guide also says you might have different deductibles for each type of coverage, so the deductible on one kind of loss may differ from the deductible on another. Our guide on how the wind and hail deductible works in Texas covers one such deductible, and home insurance deductibles in Texas covers the general rule.
On timing, TDI's guide says to tell your company as soon as possible, that most companies have deadlines for you to file a claim, and that some policies have a one-year deadline unless you can show good cause for the delay. The tip sheet says companies can't charge you more for calling your company or agent to ask questions about your policy or the claims filing process.
Claim-free discounts and claims
A claim on a Texas home insurance policy can cost you a discount as well as a deductible. The tip sheet says you could lose any discounts you're getting for being claim free, and the discounts that TDI's guide says you might be able to get include one for having no claims for three years in a row, with each company deciding what discounts to offer and the amount of the discount.
Whether you have a claim-free discount, and what a claim would do to it, therefore depends on your company. It is a fair question to ask before you file.
The guide's list has other discounts to ask about. They are for a monitored burglar or fire alarm system, a sprinkler system, an impact-resistant roof, a newer home or a home in good condition, and other policies with the same insurance company. Our guide on bundling home and auto insurance in Texas covers that last one.
If you do file, know the clock
After you file a home insurance claim in Texas, TDI's guide lists deadlines for the insurance company to act, along with exceptions that can lengthen them. On your own timing, the guide says to tell your company as soon as possible, that most companies have deadlines for you to file a claim, and that some policies have a one-year deadline unless you can show good cause for the delay.
| Step the guide lists | Timing the guide gives |
|---|---|
| Tell you that it got your claim | Within 15 days; the guide says there are some exceptions to its deadlines, shown in this table |
| Send an adjuster to look at your damage | No timing given |
| Accept or deny your claim | Within 15 business days of getting all the information it needs from you. The guide says this deadline may be longer after major disasters, that a company that needs more time can take 45 days to decide whether to pay and must tell you the reason for the delay, that a company that suspects arson has 30 days, and that the Texas Windstorm Insurance Association (TWIA) has 60 days |
| Send you a check | Within five business days after it agrees to pay your claim. The guide says a surplus lines company has 20 business days to pay after it agrees to pay, and that TWIA has 10 days to pay once it has the information it needs and has accepted the claim |
The guide adds that a company that denies your claim must tell you why in writing.
The decision deadline in the guide runs from when the company has all the information it needs from you, and the guide suggests providing all the information as soon as you can. It also suggests making a list of your damaged property and, if possible, taking pictures or videos of the damage before making any repairs.
On repairs, the guide says to make only temporary repairs to protect your house and belongings, and warns that the insurance company might deny your claim if you make permanent repairs before it sees the damage. TDI's When are water damage and mold covered by insurance? gives similar advice for water claims.
Our guide on how to file a hail or storm damage claim in Texas walks through the process, and disputing a home insurance claim denial covers what to do if you disagree with the decision.
What to do with this
Before you file a home insurance claim in Texas, a few checks drawn from the TDI pages above can make the decision clearer.
- Identify the type of claim. TDI's tip sheet says home companies can't charge you more for claims for damage from natural causes, including weather. Ask your company how it would classify the loss.
- Know your nonweather count. TDI's guide ties rate increases to two or more nonweather-related claims and nonrenewal to three or more in three years, says the company must warn you after the second and can't refuse to renew because of a third claim if it doesn't, and says in the same passage that the first two appliance-related water damage claims don't count if you've fixed the damage and it has passed inspection by a qualified inspector.
- Follow up on an appliance water claim. Repair the damage once the company has seen it, since TDI's guide says permanent repairs before that may lead to a denial, then have it inspected and keep the record, because both TDI pages attach their treatment to that.
- Check the deductible for this loss. TDI's tip sheet says to find out your deductible before you file a claim and also to get repair estimates, and TDI's guide says to tell your company as soon as possible.
- Ask questions first. TDI's tip sheet says companies can't charge you more for calling to ask about your policy or the claims filing process.
- Read your CLUE report before you shop. TDI's guide says you can get a free copy each year by calling LexisNexis at 866-312-8076.
- Count the claim-free discount. Ask your company whether you have one and what a claim would do to it.
- Send your information promptly if you file. TDI's guide suggests providing all the information as soon as you can, and making a list of your damaged property and, if possible, taking pictures or videos of the damage.
- Hold off on permanent repairs. TDI's guide says the company might deny your claim if you make permanent repairs before it sees the damage.
Key facts
- TDI's Will my premium go up if I file a claim? says home and auto premiums can go up if you file claims, depending on the type of claim and how many you file, and that you could lose discounts for being claim free.
- The same TDI tip sheet says home companies can't charge you more for claims for damage from natural causes, including weather. It also says home companies can't charge you more for appliance-related water damage claims if the repairs have been inspected and certified, unless you have three or more claims in three years.
- TDI's Home insurance guide says a company can raise your rates if you file two or more nonweather-related claims, and says in the same passage that the first two appliance-related water damage claims don't count if you've fixed the damage and it has passed inspection by a qualified inspector.
- The same TDI guide says a company may nonrenew a policy after three or more nonweather-related claims in three years, that it must warn you after two, that without that warning it can't refuse to renew because of a third claim, and that the first two appliance-related water damage claims don't count if you've fixed the damage and it has passed inspection by a qualified inspector.
- TDI's tip sheet says home and auto companies can't charge you more for claims the company didn't pay, or for calling your company or agent to ask questions about your policy or the claims filing process.
- According to TDI's Home insurance guide, CLUE reports show the claims history of people and houses for the last seven years, and you can get a free copy each year from LexisNexis at 866-312-8076.
- TDI's Home insurance guide gives a company 15 business days to accept or deny a claim after it has all the information it needs from you, and says that deadline may be longer after major disasters, that a company that needs more time can take 45 days and must tell you the reason, that a company that suspects arson has 30 days, and that TWIA has 60 days. The guide gives a company five business days to send a check after it agrees to pay, or 20 business days for a surplus lines company and 10 days for TWIA once it has the information it needs and has accepted the claim.
Sources: Texas Department of Insurance, Will my premium go up if I file a claim?, Home insurance guide and When are water damage and mold covered by insurance?. TDI's Help Line is 800-252-3439. This page is general information, not legal advice; for a question about your own situation, check your policy or contact the Texas Department of Insurance.
Take the next step
Before you decide whether to file, know what type of claim it is, how many nonweather claims you have filed and when, and which deductible applies. TDI's guide says to tell your company as soon as possible. If you are shopping for home insurance, our guides on how to get home insurance quotes in Texas and switching home insurance companies in Texas cover what to line up first.
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