When looking at Burleson Home Insurance, one of the things that independent insurance agents look at to determine a rate is called a CLUE report. You likely have no clue what it is, but it's details about you help determine whether or not you can get insurance and also how much it will cost.
So What Is It?
CLUE stands for Claims Loss Underwriting Experience. This is a central database that is administered by a company called Lexis Nexis who compiles the history of claims directly from the major admitted insurance companies. The insurance companies report all of the claims data for home insurance to Lexis Nexis who then compiles it into a central repository. They attribute that data by both address and person, so that companies can determine how best to issue a new policy to you as a prospective customer.
How Does It Affect Me?
The affects really are two fold. First, if you are buying a home and looking for coverage, the companies will be able to determine the claim history of the property you are purchasing. This will allow the company to know if your prospective property has a history of claim activity like water claims. Or maybe there was a hail claim two years ago and they will want to insure that the damage of that claim was in fact repaired prior to issuing the new policy.
The other way it can affect you is that claims you have made from prior addresses will be associated with you. The companies will then have an idea what your probability of claiming is based off of past history. Because of this look back, it is important to understand that both of these factors will potentially raise the price to cover that new home that you have fallen in love with. In a worst case scenario, it can make you completely un-insurable for that home. And that can get you in hot water in a hurry with a spouse!
So What Can Be Done?
When evaluating a home to purchase, it makes sense to have a local independent insurance agent pull a report so that you can know what to ask of the seller first and foremost. This can keep an unwanted surprise from creeping up on you both from an insurance stand point and also from an un-repaired damage to the home stand point.
Also, this check reinforces working with an agency that sees the relationship as one of consulting and not just selling. Insurance For Texans is happy to consult with you about a claim before filing it with the company to eliminate potential problems later. If damage to your home is below a deductible, it does not make sense to file the claim and receive no benefit.
Working with a local independent agency allows you to make smart decisions as well as being able to leverage the entire insurance marketplace. This means that you can know that your assets are protected and your best interest is put first. If you would like a consultation, simply schedule a meeting now!
