Can a burglary claim make premiums double?

[amnv]

Hi, I am in Charlotte, NC

I had to recently make my first claim in about 10-11 years.
Burglars broke in to our house and stole some electronics and jewelry. Police came out took picture of trashed house and filed report. Insurance company paid 4-5K for repairing the broken glass door and for some electronics and jewelry - not all.

Few months down the road they raised the premium from $500 to $980.

It's so ridiculous.

Is this legal? Has anyone heard of complaining somewhere and benefiting from that?

I ask this because
1. It is not my fault, like you would argue for car insurance
2. Overall area statistics show that the crime has gone down in this area in past year.
3. Some of this break-ins, vandalism is built into the overall area insurance

Please help,

[moburkes]

Yes, legal, but the claim is only one of the factors which increased your premium. Other factors include your insurance score (credit) lowering, a general rate change in your area, your Coverage A increased due to inflation, which subsequently increases Coverages B, C, and D, which also increases the premium.

Show around.

FYI. It doesn't really matter how long it's been since the last claim, since most companies surcharge all claims within the last 3 or 5 years.

[amnv]

Moburkes - I understand your points,

Credit score - I just ran last month was 813, top of the excellence.
Area - As I originally posted, Charlotte police department says overall incidents have dropped and less problems.

DOES IS CHANGE SO DYNAMICALLY FROM $500 TO $980?
Most forums, replied by agents or adjuster said that rates won't get affected by claims like burglary, as it is not our fault.

I faxed Allstate agent asking reason, he wouldn't reply.

I really want to take some action, please advice some legal procedures, where to go and what to do.

[moburkes]

Originally Posted by amnv

Moburkes - I understand your points,

Credit score - I just ran last month was 813, top of the excellence.
Area - As I originally posted, Charlotte police department says overall incidents have dropped and less problems.

DOES IS CHANGE SO DYNAMICALLY FROM $500 TO $980?
Most forums, replied by agents or adjuster said that rates won't get affected by claims like burglary, as it is not our fault.

I faxed Allstate agent asking reason, he wouldn't reply.

I really want to take some action, please advice some legal procedures, where to go and what to do.

Yes, it can change your premium. Yes. But insurance companies use LOTS of factors to determine rates. Trust me. I know this. I just helped start a new insurance company for homeowners. Insurance companies don't generally look at the TYPE of claim (except for catastrophic ones). A claim is a claim is a claim.

Your credit score and your insurance score are 2 different things.

Considering that the rates were filed with the department of insurance, the action you can take is to change companies.

[tammy8]

I know there are 3 claims that affect rates at a higher rate. Liability, fire and theft. Usuaully an average of a 30% increase for 3 yrs. I bet you got a CTR to sign also. Most NC policies are getting those without claims. Add one of the big 3 claims and you were 90% likely to get one explaining the rate increase.

Also NC has taken HUGE increases over the board. Blame it on the Fair Beach Plan. Age of house, where you are in Mecklenburg county and any other avaiable discounts make a big difference in your rates. Do you have your auto with the same company? If not, you might want to see about switching. I hear tell companies in NC, like companies on the Gulf States are going to stop carrying monoline policies. And it is doubtful you will find another carrier, with the same type of coverage, that will even write you with a *big 3* claim.

[moburkes]

Originally Posted by tammy8

I know there are 3 claims that affect rates at a higher rate. Liability, fire and theft. Usuaully an average of a 30% increase for 3 yrs. I bet you got a CTR to sign also. Most NC policies are getting those without claims. Add one of the big 3 claims and you were 90% likely to get one explaining the rate increase.

Also NC has taken HUGE increases over the board. Blame it on the Fair Beach Plan. Age of house, where you are in Mecklenburg county and any other avaiable discounts make a big difference in your rates. Do you have your auto with the same company? If not, you might want to see about switching. I hear tell companies in NC, like companies on the Gulf States are going to stop carrying monoline policies. And it is doubtful you will find another carrier, with the same type of coverage, that will even write you with a *big 3* claim.

Hey girl. Leave it to you to notice that's its NC. I didn't. SOOOOO many companies are pulling out of NC homeowners. They're taking a beating. Personally, I believe the largest part of the rate increase is because of a general rate increase. The filing I just worked on didn't differentiate between claims (except CAT), and the ones I've recently had the pleasure of viewing didn't either.

[tammy8]

Hey Mob!!!! Wondering how you been lately! Glad to hear you are still plugging away in our wonderful field of work

Yeah we are getting crazy in NC aren't we????? Scary cause we used to be the safest and cheapest state (or one of them) in the nation. Just waiting for another Hugo to hit again......