How does having homeowner's insurance benefit me?

I filed two homeowners insurance claims to fix mold in the past year and now my insurance increased by $1,500. What's the purpose of filing a claim? My new premium costs as much as paying for the repairs myself.

“It can be incredibly frustrating to submit a claim only to discover a premium increase at your next renewal.
It may not always be worth it to file a claim. Depending on the type of damage and the cost of repairs, it may be better to pay for repairs yourself if you can afford the cost of repairs yourself or if you’ve recently filed a claim (for example, in the same year).
That said, if you experience large-scale damages like fire or theft, or if you can’t front the cost of repairs, homeowner’s insurance can help cover damages that far exceed the cost of premiums.
Since policyholders all pay into a premium pool, insurance companies may charge you more after submitting a claim. They do this to ensure they’ll have enough to pay out any possible claims for all policyholders.
When you submit a claim to an insurance company, they assume you’ll likely submit more, meaning they’ll need additional money in the premium pool.
Luckily, you have options to reduce the cost of your insurance! Every company offers different coverages and rates, so you’ll want to shop around.
You can request home insurance quotes online or go to Jerry. A licensed broker, Jerry does all the hard work of finding the cheapest quotes from the top name-brand insurance companies and buying new car and home insurance.”
Sophie Newman
Answered on Sep 23, 2021
Sophie Newman is a writer from California. Her hobbies include brewing her own kombucha, riding horses, and taking long road trips.

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