Rant: That $700 water damage claim I thought was a win - turned into a nightmare

My basement flooded last fall after a pipe burst, and I filed a claim with State Farm. They paid out $700 quickly for the cleanup, but six months later my premium went up $400 a year, and now they won't cover any future water issues. I'm stuck paying more for less coverage. Has anyone else dealt with a quick payout that cost you way more in the long run?

3 comments

3 Comments

singh.harper4d agoMost Upvoted

$700 is nothing compared to what they'd pay out if you had a full basement flood down the road lol. My buddy had a $3000 claim paid fast by Allstate and his rate barely went up a year later because they saw he actually fixed the pipe.

rodriguez.mia4d ago

Sure, it worked out for your buddy, but that's one story out of a million. Insurance companies love to collect premiums and then fight you on claims, especially if they can blame you for not maintaining the place (and a slow leak might qualify). Paying $700 out of pocket stings now, but filing a claim is a permanent mark on your record that follows you for years, not just a year. Some insurers will drop you outright for a claim that size, and then you're stuck with high-risk coverage that costs way more than $700 every year. I'd rather eat the small cost and keep my claim-free discount than gamble on the system working in my favor.

emmaking4d ago

@rodriguez.mia has a point though, one claim and you might get dropped by everyone.