Insurance claims aren't free money. Filing has costs:
- Your deductible (immediate)
- Premium increase at next renewal (3-5 years)
- Claim history (affects future shopping)
- Time + paperwork
Three damage scenarios on a typical $2,200/year NAZ policy.
$4,000 damage (small wind event, partial repair)
| Path | Out-of-pocket year 1 | 5-year total cost |
|------|---------------------|-------------------|
| Self-pay | $4,000 | $4,000 |
| File claim | $1,000 ded + $300 premium hike × 5yr = $2,500 | $2,500 |
File the claim — saves $1,500 over 5 years.
$8,000 damage (medium hail event, partial repair)
| Path | Out-of-pocket year 1 | 5-year total |
|------|---------------------|--------------|
| Self-pay | $8,000 | $8,000 |
| File claim | $1,000 ded + $400 premium × 5yr = $3,000 | $3,000 |
File the claim — saves $5,000.
$16,000 damage (full re-roof needed)
| Path | Out-of-pocket year 1 | 5-year total |
|------|---------------------|--------------|
| Self-pay | $16,000 | $16,000 |
| File claim | $1,000 ded + $500 premium × 5yr = $3,500 | $3,500 |
File the claim — saves $12,500.
When self-pay is actually better
- Damage below your deductible. $1,800 damage on a $2,000
deductible = no claim payout, just damage to your record.
- Multiple recent claims. If this is your 3rd claim in 5 years,
carriers may non-renew. Self-paying #3 protects future
insurability.
- Old roof that won't be fully covered. ACV (actual cash value)
on a 20-year-old shingle roof = ~30% of replacement cost. You
might net only $2K-$3K on a $14K claim.
- Insurance shopping in the next 12 months. Open claim or
recent claim = harder shopping. Defer the claim if you're
planning to switch carriers.
How premium increases actually work
AZ insurance premium hikes after a claim:
- First claim in 5 years: typically 8-15% increase at next
renewal
- Second claim: 15-25%
- Third claim: many carriers non-renew
The "claim history" follows you for 5-7 years across most
carriers. Switching insurers doesn't reset it (CLUE database).
Decision framework
For damage above your deductible:
- First claim in 5+ years? Almost always file.
- Second claim within 5 years? Calculate carefully — premium
hike might exceed savings.
- Third claim? Self-pay if at all possible. Non-renewal
costs more.
- Old roof + ACV-only policy? Get a contractor estimate before
filing — payout might be less than you'd expect.
Get a contractor estimate first
Before filing ANY claim, get a written estimate. The estimate tells
you:
- Real damage amount (vs your guess)
- Whether you're above your deductible meaningfully
- Whether the work is straightforward or has complications