Many Grapevine home owners have questions about how their home insurance policy premium rate gets determined.
We like to give them a clue, pun intended, by explaining how a CLUE report factors into the rating.
What is a CLUE Report?
For those who enjoy acronyms, a CLUE report stands for Claims Loss Underwriting Experience. A central database administered by a company known as Lexis Nexis gathers this historical information related to claims from the major insurance companies.
Insurance carriers report this data and when it comes time to determine your rate, this information is used to make an informed decision regarding your risk profile and the risks related to the property you intend to cover to offer you an insurance policy that protects you and lowers the risk of the carrier.
What Does This Mean For Me?
Insurance carriers like this because they can determine if the claim history on the property. They'll find out if there were a lot of water claims or claims for hail and whether the actual repairs were completed. They want to make sure they are insuring a property in good standing.
Your history is taken into account too. It doesn't matter if you are trying to insure a different home at a new address, every claim you've made at previous addresses are taken into account with the provided past history.
A few claims can potentially raise your rates. Coupled with a property that has had claims and/or potentially incomplete repairs, and rates are certain to go up.
That's a tough scenario to be in when your spouse falls in love with the house and you fall out of love with the price of insuring it.
I Need Solutions
Evaluate, evaluate, evaluate.
The home you want to purchase should have a good look over from a local independent insurance agent. We can pull a report which will help you ask the seller the right questions.
You don't want surprises when it comes to insuring the home you want to purchase. This will help to reinforce your trust in us as consultants and not just sellers of insurance. We value relationships here at Insurance For Texans.
If we can help you eliminate potential future problems, we're going to do that. Before you buy a home or make a claim, consult with us. We want you to benefit.
Let's make some smart decisions together. We are able to access an entire marketplace of insurance carriers and solutions to protect you, your assets and decisions.
We're happy to consult!
