Could Your Home's CLUE Report Be Causing Higher Premiums?

A lot of people do not realize that home insurance companies track claims on houses through a database known as the Comprehensive Loss Underwriting Exchange, also called CLUE. The purpose of this is to allow insurance companies to gain more knowledge of the homes they are insuring, yet this could actually be something that is affecting the rates you pay on your home insurance. Here are three vital things to know about this.

You are entitled to a free CLUE report of your home

Every year, you can request a free copy of the CLUE report of your home, and you should do this. This report will show you every claim that has been made against your home during the last seven years. Getting a report is a good idea each year simply to make sure the report is accurate. If the report has false information on it, it could be affecting your home insurance policy.

The types of things found on a CLUE report

Your home's clue report may be blank, and this means that you have not filed any claims against your home in the last seven years. There are also times CLUE reports are blank due to the insurance companies you have used. There are some insurance companies that do not take part with this database; however, most large insurance companies do.

If your report is not blank, it will most likely contain details of claims made on the house. Each claim will be listed individually, and it will include the date of the claim and the nature of the claim. It may also include information about the payment made by the insurance company for the claim.

How this information can affect your home insurance

When insurance companies use CLUE reports, they do so to find out the risks involved with the home and the homeowner. Anytime a claim is filed and paid by an insurance company, it costs the insurance company money. Because of this, many insurance companies will raise rates on policies after claims are filed; however, this is not the case with all insurance companies.

If you get a CLUE report and find inaccuracies, you can dispute them. By doing this, you might be able to get a lower rate on your homeowner's insurance.

If you have questions about your home's CLUE report or the rates you are currently paying on your home insurance, contact an insurance agency.