APPLY TODAY

Attach Resume

(max. file size 32 MB)

file
ServiceMaster technician explains a basement water damage to a husband and wife

Will Water Damage Raise My Insurance Premium? What Chicago Homeowners Need to Know in 2025

Sam Simon

June 19, 2025

Most homeowners don’t realize that a small water damage claim can lead to a massive increase in premiums—or even cancellation. In this expert guide, Sam Simon of ServiceMaster Restoration By Simons shares insider advice based on 30+ years of experience restoring homes across Chicago, the North Shore, and the suburbs. Learn when to file, what insurers look for, and how to protect your wallet and your property.

Will Water Damage Raise My Insurance Premium? What Chicago Homeowners Need to Know in 2025

Water damage is one of the most common—and costly—claims homeowners make. But here’s what most people don’t realize: the long-term cost of water damage may not come from the water itself. It may come from your next insurance bill.

I’ve been in the restoration business in the Chicagoland area for over 40 years, and I’ve seen homeowners unknowingly cause their premiums to spike—or worse, get dropped—simply by filing a claim at the wrong time. If you live in Chicago, the North Shore, or the western suburbs, understanding how water damage affects your insurance premiums can save you thousands.

The #1 Question: Does Water Damage Increase Insurance Premiums?

Short answer? Yes. But it depends on a few key factors:

  • The cause of the damage (sudden burst vs. long-term leak)
  • Whether it’s your first claim
  • The size of the payout
  • Whether mold develops
  • Your zip code’s loss history

In towns like Wilmette, Lake Forest, or Oak Park, where homes can be 80+ years old, even a minor pipe issue can escalate quickly. Insurers see multiple claims from aging properties as risk red flags.

Water Damage vs. Flood Damage: Why Illinois Homeowners Must Know the Difference

This is a mistake I see all the time: people assume water damage is covered the same as flood damage. It’s not.

  • Water damage typically refers to sudden, internal issues: pipe bursts, appliance leaks, roof leaks after a storm.
  • Flood damage refers to rising groundwater, flash flooding, or sewer backups — and is NOT covered under most homeowners policies unless you have a separate flood policy.

If you’re in Des Plaines, Elmwood Park, or Skokie, you’re in areas that regularly deal with flash flooding from the Des Plaines and North Branch rivers. Without flood insurance, your claim might be denied.

How One Small Leak Could Cost You Thousands

Let me give you a real example. A homeowner in Hubbard Woods (Winnetka) noticed bubbling paint near a window. Instead of investigating further, they filed a water damage claim. The insurer sent an adjuster, who found signs of long-term leakage—which is typically considered neglect. The claim was denied, but it still appeared on their record.

Months later, when they had a legitimate pipe burst, the insurer increased their deductible and premium.

That one mistake? It cost them $4,800 in out-of-pocket expenses.

When You Should—and Shouldn’t—File a Claim

This is one of the most common questions I get.

File a claim if:

Do NOT file a claim if:

  • The cost of repairs is close to your deductible
  • The source is unclear or ongoing
  • You’ve filed another claim within 3–5 years

In Northbrook, for instance, we helped a family clean up a dishwasher leak that soaked part of their hardwood floor. The estimate? $2,200. Their deductible? $1,500. I advised them to pay out of pocket. Why? Because their last roof claim had already raised their premium. A second one would’ve risked cancellation.

What Insurers Look For in Repeat Water Claims

If you live in a high-risk zip code or have filed two or more claims, you may be labeled "high risk" or even "habitual claimant." That can lead to:

  • Premium increases of 20–80%
  • Non-renewal at the end of your policy term
  • Limited coverage options (you’ll get dropped into the substandard market)

This hits areas like Rogers Park, Highland Park, Glenview, and Lincolnwood, where aging infrastructure leads to frequent plumbing issues.

How to Protect Your Home—And Your Premium

Here’s what I tell every homeowner, from Deerfield to Bridgeport:

  • Fix minor leaks before they become claims
  • Install water leak detectors in basements, behind dishwashers, near water heaters
  • Keep good records of any repairs or maintenance
  • Use a certified restoration firm (like ours) that provides documentation insurers trust

Need help deciding whether to file? Give us a call. I’m always happy to offer advice before you involve your insurance company.

Why Local Expertise Matters

Restoration isn’t just about drying out a room. It’s about knowing the homes, plumbing, and weather patterns unique to Chicago’s bungalow belt, Skokie Ridge, Techny in Northbrook, or the Conway Farms subdivision in Lake Forest.

Our team at ServiceMaster Restoration By Simons has served Cook, Lake, and DuPage Counties for over 40 years. We’ve worked in:

  • Chicago neighborhoods like Portage Park, West Loop, North Center, and Bronzeville
  • North Shore towns like Glencoe, Winnetka, and Kenilworth
  • Western suburbs like Downers Grove, Naperville, and Elmhurst

We know how insurance carriers behave in these areas—and how to help you make smart choices.

FAQs

Q: Does a water damage claim always raise your premium?
A: Not always. But even a small claim can have a long-term impact if you’re in a high-risk area or file multiple times.

Q: What if mold appears later? Can I still file?
A: Possibly—but delayed mold reporting could void coverage. Always get it documented right away.

Q: Should I tell my insurance about every leak?
A: No. Talk to a professional first. Some minor issues are better handled privately.

About the Author

Sam Simon is the owner of ServiceMaster Restoration By Simons, a multi-award-winning disaster restoration firm serving Chicago, the North Shore, and the western suburbs. With over 30 years of experience and credentials including IICRC Master Fire & Water Restorer, Sam is the co-author of RESTORE: A Complete Guide to Protecting Your Home As Your Most Valuable Asset. His company is an IICRC Certified Firm and proud member of the Restoration Industry Association.

Internal Links:

LinkedInLinkedInFacebookFacebookmailmail
Sam Simon

Sam Simon is the Co-Owner and Managing Director of ServiceMaster Restoration By Simons, a certified MBE/WBE disaster restoration and specialty cleaning firm proudly serving Cook, Lake, and DuPage Counties in Illinois. With over 30 years of experience in restoration project management, field operations, and emergency response, Sam plays a vital leadership role in overseeing service execution, technician development, reconstruction, and subcontractor coordination.

He holds the IICRC’s highest technical designation as a Master Fire & Water Restorer, a distinction achieved by fewer than 1% of professionals in the restoration industry. His technical scope includes water and flood damage restoration, fire and smoke recovery, mold remediation, and post-disaster reconstruction across both residential and commercial sectors.

Sam has demonstrated a long-standing commitment to helping communities in crisis. He has participated in large-scale disaster recovery efforts across the U.S., providing boots-on-the-ground leadership during Hurricanes Katrina, Sandy, and Harvey, as well as catastrophic floods, wildfires, and deep freeze events throughout Illinois, Indiana, Iowa, Minnesota, Ohio, Texas, and beyond. His dedication to serving distressed families and businesses in the wake of national catastrophes reflects both his personal values and ServiceMaster’s mission of restoring peace of mind.

In 2019, Sam was selected for the HACIA Contractor Training Program, a competitive six-month construction management cohort offered by the Hispanic American Construction Industry Association. The program delivers intensive instruction in blueprint reading, estimating, project management, and construction law—skills that support the company’s continued growth in emergency build-back and general contracting services.

Before co-founding ServiceMaster Restoration By Simons, Sam built a successful creative career under the name Sam Zabadneh, contributing to notable film and television productions including Chicago Fire (2012), Juvies (2007), and Image Union (1978). His media and videography background continues to shape ServiceMaster’s marketing strategy, digital training resources, and brand storytelling.
IMDb Profile

Sam is also the co-author of RESTORE: A Complete Guide to Protecting Your Home As Your Most Valuable Asset—a practical guidebook for homeowners navigating the challenges of water, fire, and mold damage.

Under the direction of majority owner and President & CEO Nasutsa Mabwa, and with Sam’s operational leadership, ServiceMaster Restoration By Simons has earned numerous regional and national accolades, including:

Subscribe

Subscribe now for expert tips, rapid-response insights, and restoration guidance delivered straight to your inbox. Whether you’re recovering from fire, water, or mold damage, stay prepared with advice from the trusted pros at ServiceMaster Restoration by Simons.

Restoration and Recovery Tips

Get Help Now

Stop fire, water, and mold damage before it spreads! Call us day or night to restore your home or business—we’ll Get You Back to Normal, FAST!™

Icon(773) 376-1110