C.L.U.E Reports: Horror Stories and How to Avoid Being One

OK, sorry to seem argumentative... it's really not my style, but Farmers is the company I worked for, and they DO use credit as part of their process for determining their rates (at least in OK, I can't speak for every state) and those inquiries DO NOT affect your credit score. There are different types of inquiries, some that will lower your score and those that will not. An insurance company's inquiry will not affect the score, because it's not seen as an application for credit, but rather an inquiry for underwriting of insurance. I think everyone definitely needs to be aware of CLUE reports, but the information given needs to be accurate and everyone needs to realize this is NOT something to get in a panic about or start believing this is going to throw a monkey wrench in every deal you have going.

 Diane, I'm so sorry and I'm sure you paid through the nose for your Insurance. I have never used my insurance and have a high deductible. If I have a minor problem, I plan to just pay for it. Some of the claims I have seen could have been avoided through maintenance. I have a couple of issues in my home that I really have to keep an eye on. New Construction 5 years ago, but built on a 60 degree grade with a 25 ft high retaining wall with caissons on the back of the property. I have to maintain the drains and make sure my rain gutters are kept clear. Also have the fire sprinkers to maintain and a very important factor to watch on these homes built on grades is to make sure the Water regulator from the water pressue from the street doesn't overburdon the water pipes. I have it checked annually and have had to have it replaced twice.

I don't know if water pressure is checked by Home Inspectors, but should be and can save the pipes according to the plumber that works on our home.  

This post has generated my interest to make a call into a claims adjuster for more info to share on the subject.

Ahh Ryan, do they still use credit in OK? They don't in Calfornia, but they used to and I have had clients not want to move forward on their Homeowner Ins. when purchasing a new property, even when our rates are lower because of the Credit check. Perhaps I should have clarified I work in Ca. 

I have heard of it...and it could play a role in the insurability of the property.

I called our Policy Processing Dept. and they couldn't comment on credit checks done in other states since we don't in Ca., but did agree that keeping a higher deductible with your Fire Ins. polcy is a good Idea to keep premiums down and try to take care of the smaller losses yourself. Any loss, no matter how small can affect your Premium (in Ca. w/Farmers up to 30% increase in Premium for 3 years.) I have Homeowner Insurance to protect our home in the worst case senario. Like our Autos, maintenance and Insurance is all part of the deal of ownership.

My husband and I both have Life Ins. as well. We take care of ourselves, but I'm a lot more expensive to maintain than he is, lol. Hopefully it's not going to be needed for a long long time.

While we are on the subject on losses and how it can affect you. Many Agents and Brokers have employees and subject to our wonderful Workers Comp Laws in Ca. Check your policy or State fund ofice to see what you can do regarding paying for first Aid and keeping these loss's off of your Loss counts. The small losses take a bigger bite out of your rate than large losses, because they are rated differently. There is criteria to what is first aid and what is not. Most of my homeowners are also business owners. I like to offer help in all areas of their life whether they are insured with me or not.

Have a great day everyone and Thank you Diane for bringing this subject to AR

Oh Diane, that is such a shame. When I called Policy Processing, I even brought up a point when I was a teen, someone stole my uhhem....10speed. My Parents made a claim to the Ins. Co. and within 2 weeks, had a new bike. I was told that those were the days, but now, it just doesn't work that way.

Diane, if it helps at all, when our Son was 12, older boys in the neighborhood were scamming all the little kids and ripping off homes as a team. Cd's, Video Cams, you name it. It moved, it was gone. After making the police report, the alternative school hoodlums (for asaulting a teacher) waited for our Son to get off the bus and broke his jaw. The guys were 16 and 17 in a very nice respectible community. I don't mean to remove any of your "burnt feelings" towards insurance, but after surgery and our Son's mouth wired shut for 6 weeks and having to move, you did not do so bad. I had to get our Congressman involved for them to even see a court and a few days in Juvinile hall. Times are changing, that's for sure. Our whole world is moving at such a fast pace. Hopefully our stories will help others now that we have AR.

A lot of homeowners have never heard of them. That is why they need agents :-)

Excellent reminder and a great way to establish yourself as a marketing expert.  No one else in my market would mention a CLUE report.  I think I will start to incorporate it and see what the results are like!

Interesting post and comments....is this report used in every state? 

I have ran into problems with CLUE.  For awhile they were dinging people for calling and asking questions.

Ki, I had the same thing happen back when I was still an agent. I got to where I was very careful not to give specific information when calling to ask questions. If I gave client info, an inquiry was considered a claim, whether anything was paid out or not. I had a real problem with that!