The Short Answer: Yes, They Can.
Many homeowners assume that insurance claims stay with the house where the loss occurred. In reality, insurance companies often look at both the property’s claims history and the homeowner’s claims history when deciding whether to offer coverage and how much to charge.
So if you’ve had claims at your current home, those claims can affect your insurance rates and eligibility when you buy a new house.
How Insurance Companies Track Claims
Most insurance companies use a database called the Comprehensive Loss Underwriting Exchange (CLUE).
A CLUE report contains information such as:
- Date of loss
- Type of claim
- Amount paid
- Property address
- Policyholder information
When you apply for homeowners insurance, many carriers pull a CLUE report to review your prior claims history.
Do Claims Stay With the House or the Homeowner?
The answer is: both.
Claims Follow the Property
Insurance companies may review prior claims associated with the specific property being insured.
For example:
If a house had:
- Three water damage claims
- A fire claim
- Multiple liability claims
The property’s loss history may affect future insurance pricing, even if you are a new owner.
Claims Follow the Homeowner
Insurance companies also evaluate your personal claims history.
For example:
You own a home in Anaheim and file:
- A water damage claim in 2023
- A roof claim in 2024
Then you move to Irvine and purchase a new home.
Many insurance companies will still see those prior claims and may consider them when underwriting your new policy.
Which Claims Affect You the Most?
Water Damage Claims
Water claims are among the most concerning claims for insurance companies today.
Examples include:
- Burst pipes
- Slab leaks
- Water heater failures
- Washing machine leaks
- Overflowing toilets
Multiple water claims can lead to:
- Higher premiums
- Fewer carrier options
- Coverage restrictions
- Potential declinations
Fire Claims
Fire losses often have the biggest impact because they can result in substantial claim payments.
Even a single major fire claim may affect eligibility with some carriers for several years.
Liability Claims
Claims involving injuries can raise underwriting concerns.
Examples include:
- Slip-and-fall accidents
- Dog bites
- Personal injury lawsuits
Theft Claims
While generally less concerning than fire or water losses, frequent theft claims can still affect your insurance options.
How Long Do Claims Stay on Your Record?
Most insurance companies focus on claims that occurred within the last:
- 3 years
- 5 years
- Occasionally up to 7 years
Generally speaking, recent claims have the greatest impact.
Will One Claim Cause Problems?
Usually not.
Many homeowners file a claim at some point.
A single claim from several years ago often has little effect on obtaining coverage.
The bigger concern is a pattern of claims.
For example:
Lower Risk
- One water claim in the past 5 years
Higher Risk
- Three water claims in the past 4 years
- Multiple liability claims
- Recent fire loss
Insurance companies often view repeated claims as a predictor of future losses.
Should I File Every Home Insurance Claim?
Not necessarily.
Before filing a claim, consider:
- The size of your deductible
- The amount of damage
- Whether the loss is truly catastrophic
Sometimes paying for a small repair out of pocket may be preferable to creating a claim history that affects future insurance options.
Always discuss the situation with your insurance agent before filing a claim.
How to Improve Your Insurability
If you’ve had prior claims, you can improve your insurance profile by:
Maintaining Your Home
Address issues before they become major claims.
Updating Plumbing
Older plumbing systems are a leading cause of water losses.
Replacing Aging Roofs
Roof-related claims are increasingly scrutinized by insurance companies.
Installing Water Leak Detection Systems
These devices can help prevent major water damage and may make your home more attractive to insurers.
Keeping Claims to True Emergencies
Home insurance is designed for sudden and significant losses—not routine maintenance.
The Good News
Even if you’ve had prior claims, it does not mean you can’t get homeowners insurance.
An experienced insurance broker can often help you find coverage options by comparing multiple carriers and matching you with companies that fit your specific situation.
Need Help Shopping Home Insurance?
Whether you’re buying a new home, moving to another city, or concerned about how prior claims may affect your insurance, we’re here to help.
At Starwest Insurance Services, we work with multiple insurance companies throughout California and can help you compare your options.
James C.Q. Banh
Starwest Insurance Services
📞 Office: 714-893-7271
📱 Text: 714-867-7799
No broker fees since 1995.
Related Articles
- Why Home Insurance Companies Care About Water Damage Claims
- Will a Roof Claim Increase My Home Insurance Premium?
- California FAIR Plan vs. Traditional Home Insurance
- How Many Home Insurance Claims Are Too Many?
- Landlord Insurance and Claims History Explained