The CLUE report and the insurance scoring system are tools insurers use to decide your risk profile, that is, how likely you are to file a claim against your policy. Insurers feed information about paid claims - perhaps even your inquiries about coverage that do not result in a claim - into a national database for use by insurers. Information included in the database, along with your insurance score, makes up your risk profile. Insurers use the profile to decide whether you get new insurance. At renewal time, your current insurer will probably review your claims history as well as your current insurance score to set your premiums - even to decide if you get to keep the insurance you have. When you shop for new insurance, the company may order a CLUE report. If information is inaccurate, you can be left without insurance while you work to correct the errors.
Knowledge is Power - take time to visit the link below:
Check out the Privacy Rights Clearinghouse to read all about CLUE and what it means to you.
Insurance Trap!
Standard policy forms by Insurance Services Office were once used by insurers but now some are writing their own and tweaking the wording which could mean trouble for some homeowners. Some policies include mold and lead coverage and other not, according to a study to be published early next year by the University of Chicago Law Review. Homeowners could find their claims denied when a disaster occurs.
Remember to ask questions before purchasing a policy such as:
Is Wind Damage covered and is there a deductible?
Is Flood Damage covered and is there a deductible?
Will items be paid at replacement value or actual cash value?
What exclusions or limitation are there in the policy?
Get ready now for your insurance renewal - don't forget to shop around!
Source: “A Home-Insurance Trap?” The Wall Street Journal (Dec. 3, 2011)
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