How does a claim affect homeowner’s insurance?
How does a claim affect homeowner’s insurance? Every time a homeowner makes a claim for damage to their home, it is recorded for seven years in national databases called the Comprehensive Loss Underwriting Exchange (CLUE) or Automated Property Loss Underwriting System (A-PLUS). That is, the insurance company must report that the claim has occurred.
As is logical, this report influences the price of the premium of the insurance policies of the property in question. Because every time an insurer is going to renew a policy or make a new one, they take a look at the CLUE or A-PLUS reports to determine the price or even if they are interested in writing the policy.
With this information in hand, you’ll know not to take the issue of claims lightly because it takes its toll on you in the long run.
That does not mean that you do not claim your insurance company. The goal of paying for an insurance policy is to use it when necessary. We just advise you to apply common sense and consider the pros and cons. As a guide, we may suggest that you claim when the cost of repair or compensation you expect to receive is more than twice your deductible.
The claims that most affect the price of the insurance premium are Water damage, that is, damaged pipes or flooding as a result of the poor condition of the plumbing. Claims for civil liability. If someone falls into your pool, or your dog bites a neighbor. Claims for fire -which are the most expensive- and those related to theft, since the companies usually interpret them as not having taken sufficient security measures.
Moreover, this knowledge that we have shared is very useful for those people who are buying a property. We suggest that they inquire about the CLUE reports of the house they wish to buy, to find out if there are any problems that could influence their future homeowner’s insurance. How does a claim affect homeowner’s insurance?