Living in these areas may result in you filing multiple flood claims and falling into the “severe and repetitive loss” category on your insurance policy, where four separate claims are paid out at over $5,000 each. This might cause your rates to jump as much as 25%.
If your premium does increase after a flood claim, it’s important to keep in mind that the change isn’t permanent. Most claims are cleared from your record after 3 to 7 years, depending on your insurance company. While your premium may not go back to its original rate, it will decrease a bit.