[Just Sold]

Insurance companies use a central reporting system to track all claims and can very well increase or even deny insurance on a property if they deem it a risk. They had it for years but rarely used it until after Katrina then things changed.
I have seen it happen to a buyer on a property because the owner had a faucet fail causing about $2,500 in damage 5 years before the home was put on the market The buyers insurance agency said the "home" was a high claim risk and would not issue a policy. The buyer had to go to another company to get insurance.
So an insurance company could hike a policy if you have a claim they deem to be high a risk for them or falls into their established claim risk category.