Can You Cancel or Withdraw a Home Insurance Claim?

You can usually cancel a home insurance claim before you receive a payout for it, and most insurers won’t charge you a fee to do so. But your closed claim will still appear in your home’s claims history, and it could affect your premiums in the future.^[1]

Instead of withdrawing a claim, it’s a better idea to evaluate whether it’s worth filing a home insurance claim at all when damage occurs. Here’s what you should know about dropping a home insurance claim, why it might be a good idea to avoid filing an unnecessary claim, and how to compare home insurance quotes if a claim increases your premium.

Find Affordable Home Insurance

Comparing quotes after a claim can help you find the best price

Enter your ZIP codeView My Quotes

Secure. Free. Easy-to-use.

Based on 7,669+ reviews

4.8/5

How to cancel a home insurance claim

Canceling a homeowners insurance claim doesn’t need to be complicated. Here are the steps to withdraw a claim:

1. Understand why you want to cancel your claim. Homeowners have many different reasons for canceling a claim. Perhaps you’re worried your insurance company will cancel your policy if you file another claim. Or maybe you’ve decided it would be cheaper and easier to handle the repairs yourself.

2. Contact your claims representative. You can find your claim representative’s contact information on your insurer’s app. Specifics will vary from company to company, but in most cases, you can go to the insurer’s mobile app, view your claim status, and find your insurance adjuster’s contact information there.

3. Provide key information. Once you reach your claims representative, tell them your name, homeowners policy number, claim number, and the reasons for canceling your claim.

4. Follow the claims representative’s instructions for canceling. Some insurers might handle the cancellation process on their end and inform you when they’ve canceled the claim. Or your insurer might ask you to file a cancellation request yourself online or through their mobile app. Most insurers won’t charge you a fee for canceling a claim.

Generally, insurers have 30 days to respond to a claim. But it’s less clear how long canceling a home insurance claim may take. That can depend on the insurer, state regulations, the complexity of the claim, and how far along the claims process is.

If you decide to withdraw your claim, it’s a good idea to act quickly before the company finalizes your claim and issues a settlement. Canceling a claim later in the process could complicate things.

Reasons to cancel a home insurance claim

Speaking to your home insurance agent before filing a claim is always a good idea. Most agents will be happy to discuss the details of your property damage and walk through the specifics of your policy. Together, you can decide if filing a claim is the right idea.

In certain scenarios, filing a claim might be unnecessary or financially misguided. Below are a few reasons to hold off on filing a claim or to cancel it after filing:

• The property damage amount is less than your deductible amount. If the cost of repairs is lower than your home insurance deductible, you might as well pay for the repairs out of pocket and avoid adding a claim to your insurance history. For example, if your deductible is $2,000 and the cost to repair the damage is $1,000, it doesn’t make sense to file a claim — you’d be responsible for the entire amount anyway.

• You don’t want to affect your premium. Consumer-reporting agency LexisNexis maintains claims information in a Comprehensive Loss Underwriting Exchange (CLUE). Every time your insurer begins processing, denies, or pays out a claim, that information goes into your CLUE report. The claims history in your CLUE report affects how insurance companies will rate you for future home insurance policies.^[2] If the cost of repairs is low, avoiding adding a claim to your history and potentially increasing your premiums might be worth it.

• You’ve decided to DIY. The damage might be minimal enough to handle by yourself. Or you might have the knowledge and skill to tackle repair work without spending money on a repair service.

• You don’t want to risk a non-renewal. If you file multiple claims, your insurer might decide not to renew your policy and deem your property to be high-risk, which will make it harder to purchase future home insurance policies.

• You’re reporting a maintenance issue. Read your policy closely. Many insurance policies won’t cover roof damage, mold, leaks, or pest infestations. Don’t file claims to repair these issues when they aren’t part of your coverage.

• You want to preserve your claims-free discount. Many insurance companies offer discounts to homeowners who go several months without filing a claim. Do the math and decide if maintaining your discount outweighs a potential claims payout.

When you can’t cancel a home insurance claim

In some situations, you won’t be able to withdraw a claim. For example, if other parties are involved because someone got hurt on your property, you won’t be able to cancel their claim against your home insurance policy.

And if the claims process is too far along — your insurer has already issued a payment, for example — you won’t be able to cancel the claim. And once you’ve accepted payment, you can’t withdraw the claim.

Compare Home Insurance Rates

Unlock savings and discounts when you compare rates with Insurify

Enter your ZIP codeView My Quotes

Secure. Free. Easy-to-use.

Based on 7,669+ reviews

4.8/5

How canceling a claim can affect your homeowners insurance

Most insurance companies keep track of the claims you file over the course of your policy term. This loss history ends up in your CLUE report, which insurers use to underwrite your policy and determine your rate. Reports contain up to seven years of claims history. You can visit the Consumer Financial Protection Bureau website to learn how to request your report.

Once you file a claim, it’s on your CLUE report — even if you subsequently cancel that claim. A canceled claim will simply indicate that the insurer paid out $0 on the claim. You may be able to add a notation to your report that explains the situation.^[1]

CLUE reports contain all the information associated with your claim, including the type of damage and the resulting payout. Insurers will look at this information when rating your new policy. When it comes time to renew, an extensive loss history may increase your risk score, which can lead to higher premiums on your new policy or even a non-renewal notice.

Average cost of homeowners insurance by state

Your claim history isn’t the only factor that affects how much you’ll pay for home insurance. Insurance companies also consider factors such as the age of your home, the age of the roof, and the location of the house when setting rates.

Here’s a look at the average cost of homeowners insurance in every U.S. state for a policy with $200,000 in dwelling coverage.

The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT. 

State	Average Annual Premium
Vermont	$672
Maine	$828
New Hampshire	$828
Washington D.C.	$852
New Jersey	$852
Delaware	$876
New York	$876
Pennsylvania	$876
Nevada	$900
Alaska	$924
Hawaii	$960
Oregon	$972
Wisconsin	$1,008
Washington	$1,044
Utah	$1,128
Virginia	$1,140
West Virginia	$1,176
Wyoming	$1,188
Ohio	$1,200
Idaho	$1,212
Connecticut	$1,260
Massachusetts	$1,260
Maryland	$1,368
Indiana	$1,488
Arizona	$1,500
Montana	$1,548
Minnesota	$1,608
Michigan	$1,620
Iowa	$1,668
Rhode Island	$1,668
Illinois	$1,692
Georgia	$1,704
California	$1,716
South Dakota	$1,716
South Carolina	$1,752
New Mexico	$1,764
North Dakota	$1,800
United States	$1,848
Missouri	$2,040
Colorado	$2,088
Tennessee	$2,136
Mississippi	$2,196
Kentucky	$2,220
Alabama	$2,232
Arkansas	$2,256
North Carolina	$2,292
Nebraska	$2,388
Kansas	$2,484
Texas	$2,976
Oklahoma	$3,276
Louisiana	$3,600
Florida	$3,876

Canceling a home insurance claim FAQs