|
Ever heard of CLUE? No, I don't mean the board game or the thing friends ask if you have. I'm talking about the Comprehensive Loss Underwriting Database. CLUE is a national repository of insurance claim information.
Insurers use CLUE reports to determine how likely you are to file a claim against your homeowners or auto insurance policy. CLUE reports are generally reviewed prior to issuing a new insurance policy and before renewing an existing policy.
The CLUE database is maintained by ChoiceTrust, an information clearinghouse that has been providing "decision-making technology" since 1977 to insurance companies, as well as local, state and federal government agencies.
What does this mean to you? Each time you file a claim, or report a potential claim to your insurance company, that information is recorded in the CLUE database, even if no money was ever paid by your insurance company. Too many claims can result in a policy being cancelled.
For real property, claims and damage reports are tied to the property, not the owner. Any claim or damage reports remain on the CLUE report for 5-7 years. This means any claims filed by a previous owner may negatively affect your ability to obtain insurance as well as what you pay for the policy.
If you're buying a home, make sure to ask the seller if they have filed any claims against the property during their tenure. If so, make sure to shop insurance rates during your discovery period. Finding out at the 11th hour, just before settlement, that your insurance policy has an astronomical premium due to claims filed could have serious consequences.
Curious as to what your CLUE report says? Download instructions and a CLUE report order form (.pdf). ChoiceTrust can also be reached at 866-312-8076.
|
Thanks for the post. Are you having about 1 hour of daylight about now?