Special offer

CLUE Reports and How They Affect You

By
Real Estate Agent with Windermere K-2 Realty LLC www.propertiesinmoseslake.com

Moses Lake Real Estate Agent Heather Adkinson

Also known as a Comprehensive Loss Underwriting Exchange is a claims history database that enables all insurance companies to access consumers claims information when they are underwriting an insurance policy.

Here is how it works….even if you as a homeowner have never had any claims or problems getting home insurance this will still affect you.  If you happen to be purchasing a house that has had claims made against the home you may be unable to get homeowners insurance. 

Another flaw in the system is that the only one able to obtain a clue report on the house (besides the insurance agency) is the homeowner of the property.  Make sure when you are writing up a contract on a house that the insurance claim insurance contingency paragraph is marked on the agreement.

If when a homeowner reviews the report and finds errors on that report they do have the ability to dispute the report at which point the owners insurance company will be contacted to try and determine if there is a valid claim or not.

Unfortunately these reports can also be used by insurance companies to determine what kind of risk you would be and can in turn affect if you get turned down for insurance.  Not only do the CLUE reports cover homeowners, there is also a database that shows strictly  automobile claims.  Claims will only stay on your report for 5 years however.

Be aware that any hint of water damage to a property, for example, is likely to trigger a negative mark on the property's CLUE report. Well-intentioned consumers who call an insurer to merely inquire about coverage for water damage have been shocked to have their insurance cancelled.

Here are some of the worst case scenarios that have come up as taken from http://www.privacyrights.org/fs/fs26-CLUE.htm

A former 21st Century Insurance fraud investigator and 32-year-old homeowner and mother was forced to get substandard homeowner's insurance at three times the normal price because the house she was purchasing was "blacklisted" on a national Comprehensive Loss Underwriting Exchange (CLUE) report.

A 79-year-old homeowner was turned down for a homeowner's policy because she made a $393 claim on her purse that had been stolen in Montreal while she was visiting her daughter.

A 75-year-old homeowner was "blacklisted" after she made a telephone inquiry about her policy coverage with Allstate, with whom she had continuous homeowner's coverage for 30 years.

The Chief of the Consumer Services Division, California Department of Insurance and Palm Springs homeowner was turned down when he attempted to get insurance for his new home. An inaccurate CLUE report showed five claims, two of which were for another property owned by the seller in a different city; two other "claims" were only for coverage inquiries and one claim was fully remedied and should not have had bearing on his eligibility.

 

Be aware that filing any type of claim with your insurance company may result in issues that you ought to not have to deal with.

Posted by

                   Heather Adkinson  509-760-7733               

Realtor, ABR, CNE, RCC

Windermere K-2 Realty LLC

Moses Lake, WA, 98837

www.propertiesinmoseslake.com

     

wordpress blog

Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Heather,

That is true. Unfortunately, as a result of that, people wonder why they pay for insurance for a zillion years only to be too afraid to report it when some yahoo breaks into the shed and steals the riding lawnmower. I have some insurance agents friends, they feel sheepish about it, but I know that they will tell people that if a loss is not much, they are better to just eat it and not report it. The same can be true of car insurance too. On the other hand, one year my wife, daughter and I all had some claims, from hit and run damage to one car to a stolen car. We reported it all, insurance paid it all, and not a belch in the rates. If anything they went down. It is hard to figure sometimes.

Nov 14, 2009 09:38 AM