Insurers keep track of home insurance claims. They use this information to determine how likely a person is to file another claim. The information can also shed light on the type of financial responsibility a property owner has. Many claims remain on your record for as long as seven years. During this time, any insurance company will know about them. Why is monitoring your risks important?
How Is Information Recorded?
There are various systems and methods for insurers to use. Generally, the process is much like a credit report. A database collects this information. Then, it stays there for a length of time (usually five to seven years).
During this time, almost any insurer can learn about the type of claim you filed. They can also learn the amount of the claim. If you have multiple claims on your report, this means you are a higher risk. Your risk level determines in an insurer will provide you coverage. It also can impact how much you pay for insurance.
A national database of information is available to insurers. It contains consumer information about insurance claims. Companies will report claims to the database. The database then rates risks. Your information has protection. The Fair and Accurate Credit Transaction Act applies to not just credit, but the sharing of insurance information as well.
Individuals can request a copy of their consumer insurance file. The most common way to do so is through the Comprehensive Loss Underwriting Exchange, also known as CLUE. There are other insurance databases as well.
Individuals can request information about their claim history. This includes claims related to property loss. The LexisNexis agency manages CLUE access. Individuals can request a free copy of their report one time a year through this agency.
Why Does It Matter?
Your home insurance policy provides you financial protection. If a significant incident occurs, file a claim. But avoid filing claims for anything and everything. Filing too many claims may cause your agent to list you as a high-risk.
Why is this in issue? Individuals who file home insurance claims frequently are more likely to do so in the future. This means your insurer may charge more for coverage.
If you have an interest in this information, contact a representative at Lancette Agency. Our representative can provide you with a claims history for the time you are with the agency. You can then check your CLUE report to gather more insight. Find out where your risks are.