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How does insurance work?

27 days ago

Huge rainstorm today, flooded into our basement. It seems to be coming in from behind the drywall, so maybe a problem with the foundation? That section of carpet by the sofa - the spots are existing staining; the entire area is sopping wet, water deep over the carpet. I took a photo earlier today of the outside, and there are multiple areas where the gutters seem have failed and there is just tons of water pouring off the top of the gutters.
So, does anyone know how homeowners insurance works? If we make a huge flood claim, does that raise our rates for the rest of our life (so we would be basically paying them back for the repair cost ourselves over time?). If so, then would it be better to just pay for it ourselves from savings, to avoid the hassle of negotiating how much they’ll pay, and is paying for it over time anyway? Or is it truly paid for by our insurance because we’ve been paying premiums all these years?

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