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Checking Your CLUE Report
When
a homeowner files a claim with their insurance company, it is
recorded in the company’s records and then sent to the Comprehensive
Loss Underwriting Exchange (CLUE), an insurance industry database.
Ultimately, that information is shared with other insurance companies
when you shop for new insurance coverage. It is not typically
used for renewing coverage with your current insurance company.
The
database has been in use for more than 10 years. Before CLUE,
insurance companies checked for prior claims by writing letters,
sending faxes and making phone calls. These practices added to
overall costs and delayed insurance agents’ ability to provide
the consumers with quotes.
CLUE
and buying a home
Even if you’ve had no problems getting insurance in years
past, if you buy a house that comes up with a number of claims
against it, you may not be able to get insurance.
Here’s
why: When an insurance company considers whether to offer you
insurance, they’re not just looking at your history, but
the history of the property in question.
The
database reports what claims have been filed by the policyholder
for personal losses, such as a lost wedding ring. It also reports
losses that have occurred to the property, like a kitchen fire.
The CLUE report allows you to check out the house’s claims
history – whether the claims involved dog bites, flood,
earthquake, theft, vandalism, wind or medical payments. The good
news is that approximately two-thirds of all CLUE reports show
no claims at all.
Choicepoint,
the company that owns the CLUE database, charges $12.95 for the
report, but there’s a catch. Unless you own the house, you
can’t get access to the report. But REALTORS say that you
can always request a copy as part of the transaction – and
make the sale contingent on the report’s contents.
Federal
law gives consumers the right to review their own CLUE report
at any time. If a consumer finds an error on their report, they
can dispute the item with ChoicePoint. On the consumer’s
behalf, ChoicePoint will contact the insurance company that placed
the item on the report to resolve the dispute within 30 days.
The
CLUE report can be a powerful consumer tool for the home seller
as well as the buyer. The seller can advertise the fact that they
have not had any claims. The buyer may wish to ask the seller
for a copy of the seller’s property CLUE report to learn
about prior problems with the property.
Louisiana
REALTORS may wish to consider having their customers order a CLUE
report as soon as they are under contract to represent them. By
ordering the report early, consumers can check for inaccuracies
and get them corrected before they seek insurance.
It
is also important for homebuyers to speak with their insurance
agent as soon as possible so the agent can begin working on securing
appropriate coverage for the new home. In a tight insurance market,
obtaining insurance should not be taken for granted.
Save
with these tips from the Insurance Information Institute:
Make
sure you take advantage of every discount you are eligible for.
Insurance companies offer many discounts, including discounts
for loyal customers and to those who insure their home and vehicles
with the same company.
* You may save money if your residence is equipped with smoke
detectors and by installing certain home security devices.
* Raise your deductible. Higher deductibles could produce savings
of 15% to 30% or more.
* Maintaining good credit could also help you save on home insurance,
since insurance companies may use your credit history in determining
your rates. Get a copy of your credit report and make sure everything’s
correct.
SOURCES:
Insurance Information Institute, National Association of REALTORS,
Realty Times
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