Study: SD homeowners pay 13 percent more for insurance after one claim
By Northern Plains News Service
South Dakota homeowners pay an average of 13 percent more for homeowner’s insurance after making one claim, according to a new InsuranceQuotes.com report.
That’s higher than the national average of 9 percent.
A South Dakotan’s average homeowner premium is $678 per year, but on average increases to $767 after making a claim.
In some states, making a single homeowner’s insurance claim raises the annual premium cost more than 20 percent, according to the report. The state with the highest increase is Minnesota (21.2 percent), followed by Connecticut (20.6 percent) and Maryland (19.3 percent).
“Homeowners should think very carefully about whether or not to make a claim,” said Laura Adams, senior insurance analyst at InsuranceQuotes.com. “Let’s say you have a $1,000 deductible and the claim is going to lead to a 20 percent rate hike; it’s probably not worth making a modest-sized claim.”
InsuranceQuotes.com commissioned Quadrant Information Services to examine the average economic impacts of homeowners’ insurance claims. Quadrant calculated rates using data for six large carriers in all 50 states. The policies were derived from a sample two-story, 1,800-square-foot, single-family home covered for $144,000.