Homeowner Insurance claim premium increase questions

[Ray Os]

Hi everyone, the hot tub in our primary residence froze and pipe burst, manufacturer came to check it and said it is beyond fixing. He also said my homeowner insurance will cover for it if I call them. 

I have 2 questions about that (okay maybe 3) : 

1. will claim as such will increase my premium next year? if yes, how much do you estimate it may go up?

2. Can this claim effects my rental properties premiums? 

I know this is not a lot of money claim, a new hot tub like we had is probably about 12K we can live without it, but it is a nice addon to our property incase we want to sell it soon. 

Thank you for your time and answers!

[Todd Rasmussen]

@Ray Os

First, I would be amazed if your insurance company didn't deny due to negligence. Why wasn't the hottub set to heat at a temperature just above freezing? Why wasn't the hot tub drained or otherwise protected in the face of freezing weather? Not trying to beat you up, I just think those are the questions your insurance company will ask.

Second, if it is a covered claim your policy won't cover what caused the event. If you have a roof leak or a tree falls on your house or a pipe bursts in your home, insurance doesn't replant the tree, reshingle an old roof, or repair a burst pipe. They pay from the damage that results from those events. I doubt you have any damage that occured from the pipes bursting in the hot tub, other than what occurred to the hot tub itself.

Thirdly, a small claim amount is typically indicative of an inefficient protection strategy. Homeowner's insurance is most efficient when used for catastrophic loss. You are objectively better off to set high deductible amounts, self insure some of these smaller issues, realize lower premium payments and only use homeowner's or RDP's for significant losses. 

Fourthly, while many people possess expertise in many areas be wary of:

Advice from strangers on the internet

Construction estimates from your agent

ARV's from your contractor

Legal advice from your accountant

Tax advice from your lender

and finally but not least,

Insurance advice from your hot tub manufacturer's rep :)