How Does a Claim for Water Damage Affect Insurance Premiums?

You pay for insurance coverage and you expect it to protect you when you need it.

The average homeowner makes one claim every ten years. However, insurance underwriters look at insurance in another way. Obviously, they prefer to insure those who make the fewest, least expensive claims and claiming for water damage often sets off bells for insurers. Here’s why.

Remedying water damage tends to be an expensive proposition, particularly when it causes mold. Mold may not appear for months or years, but when it does show up it is extremely expensive to eliminate.

A mold inspection averages $300 – $400 in the Atlanta area and the cost of removal depends on many factors. Severe cases can necessitate professional help and the replacement of structural materials. According to, the national average for mold remediation is just over $7,500, but it can cost much more.

Mold in a building makes it difficult to sell too. It can cause skin irritations, breathing issues and allergic reactions. Some forms of mold also produce carcinogenic mycotoxins.

Insurance companies collect claim information in a huge database called CLUE (Comprehensive Loss Underwriting Exchange). It is used to evaluate insurability. Consequently, a claim for water damage should be avoided whenever possible, because it shows up on a CLUE report.

Proactively preventing losses is by far the best way to protect your home instead of dealing with a major disaster. Regular roof maintenance costs less than correcting water damage and paying substantially higher premiums. If you already have water damage in your home, solving water damage issues without a claim, especially if the damage is minor, is a wise choice.

According to, your home insurance premiums may more than double after you file a claim for water damage. Your insurance company may also cancel your coverage and you may struggle to find a company willing to cover you again. You will pay higher fees and you may not find good coverage either.

If you’ve noticed water damage in your home, contact The Roof Clinic for a free leak inspection. The problem may only require repairs and you can avoid an insurance claim. The Roof Clinic uses gold standard HAAG certified roofing inspectors who can evaluate your water issues properly.

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