Home Insurance Costs Spike After Lawsuits

 Monday, October 25, 2021

 Insurance Business

Home insurance costs rise an average of 21% after a lawsuit, according to a new study by ValuePenguin.

However, while home insurance rates increase on average after personal liability claims in every state, the amount premiums jump varies by location.

Just one liability claim can raise the cost of homeowners’ insurance by an average of $354 per year, the study found.

‘After homeowners are sued – regardless of whether they win the case or not – their rates increase by an average of 21% across the 50 states and the District of Columbia,’ ValuePenguin said.

Rate changes after a lawsuit were highest in North Carolina, the study found. In the Tarheel State, rates spike by an average of 38% following a liability claim. Post-lawsuit rate hikes were lowest in California.
PropertyLiability
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