A homeowner purchases homeowner insurance hoping he never has to use it, but in case he does, he knows the insurance will help compensate him for the financial damage to his home.  When damage does occur, whether it be minor such as a window broken by a falling tree branch, or major such as flooding due to a broken water pipe, the owner then files a claim with his insurance company. 

Unfortunately for homeowners across America, when they file their first claim with their insurance company, they will see a hike in their insurance premium. 

A recent study commissioned by InsuranceQuotes.com, found that the average premium rate hike for a family filing a homeowner’s claim is about nine percent, which averages out to $150 a year.  In some states, however, that one claim could cause your premium to rise by as much as 21 percent.

According to a senior insurance analyst with Insurance Quotes.com, it’s better to pay for the repair yourself than filing a claim with your home insurance company.  And it turns out where you live also makes a big difference in how much your premium will rise after filing a claim, as well.

The five states which had the highest premium increases after filing one claim were Minnesota, Connecticut, Maryland, California and Oregon.  The five states with the lowest premium increase were Texas, New York, Florida, Vermont and Massachusetts.

The variations in premium increases were due to variations in state law and also the occurrence of natural disasters. 

Robert Hunter, the director of insurance at the Consumer Federation of America, said that it is inappropriate to get “dinged” on one claim. 

The executive director of United Policyholders, a non-profit group based in San Francisco, Amy Bach said that she also agrees that it is “outrageous that you use your insurance once and have your premium jacked up.”

Consumer advocates suggest homeowners take the largest deductible they can afford and pay for repairs out of pocket whenever possible to keep from having their homeowner insurance premium rate increased.  

In Texas, the state with a 0 percent premium increase after the filing of one claim, according to David Nardecchia, with the Texas Department of Insurance, state insurance law prohibits insurance companies from increasing premiums on homeowners for filing first-time claims.