Past Home Insurance Claims

A homeowners insurance policy is meant to provide protection for any unfortunate situation. While you have the option to make an insurance claim for any damage that is done to your house, it is important to keep in mind that each time you make a claim, your home insurance rates are likely to rise.

There are various other situations that may cause your homeowners insurance premiums to increase, including claims that were made by previous owners of the home. Less than 20 percent of homeowners in the United States are even aware that past insurance claims made by previous owners can affect their current home insurance rates.

Many homeowners also have to deal with an unpleasant surprise if their home insurance claim was denied. Just one denied claim can cause both your homeowners and auto insurance rates to rise. Even worse, simply discussing a claim with your insurance company, even if you do not end up filing a claim, can cause your auto and home insurance rates to increase. Not surprisingly, almost 85 percent of homeowners think that this is an unfair practice.

All homeowners insurance claims are stored for up to seven years in a database called CLUE, or the Comprehensive Loss Underwriting Exchange. All insurance carriers have access to the database, even if you do not hold your insurance policy with them. Insurance providers will look at CLUE when deciding on your insurance premiums, which can lead to much higher rates than you expect.

Before you invest in a new house, make sure to ask the current homeowner for a copy of the CLUE report on the home to see if there are any past claims that can lead to you emptying out your pockets.

For all of your homeowners insurance coverage needs and to ensure that you have the right amount of protection, contact Agape Brokers Insurance Agency in Hemet, California.

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