Franklin Connection

Did you read right? Yes! Other people’s claims could have very adverse effects on your homeowners’ insurance rate. This article will give you insights into this and show you how to avoid being a victim.

If you’ve had much to do with insurance you’ll agree with me that your claims history has a serious impact on your rates — Be it auto, home or others. There is statistical evidence that a person whose history shows very many claims will continue in that pattern even with another insurer.

In a hurry? Obtain free homeowners insurance quotes.

Insurers extend this same philosophy to a home’s claims history. Their simple argument is that recurrent claims of a particular kind could be an indication of a fault in construction. Then it would be wise to assume that a repeat claims on such a matter would be inevitable in the future.

For example, if a home has had repeated water damage claims which is due to faulty plumbing, such damage will repeat in the future making more claims inevitable. Such a problem house will then be labelled a high risk and attract very higher rates as this is the only way insurers know to protect themselves from loss.

So before you pay for that new home, ask for a CLUE (Comprehensive Loss Underwriting Exchange) report. You might think you’ve got a good deal only to pay hefty home insurance premiums because the previous owner made too many claims.

What if you fix whatever leads to the claims? It’s likely it might help but don’t forget that your application has to be evaluated within a very short time. And don’t forget that it’s much easier for an insurance company to call up a home’s loss history than to verify that you’ve made lasting changes. However, discuss this with your agent.

While you take steps to ensure you do NOT become a victim of other people’s claims, don’t missing the opportunity of getting superior coverage for a lot less. Obtain and evaluate quotes from many Insurance carriers. Will you save $100, $200m $300 or even much more? You can only find out by getting and comparing quotes.

Remember that quotes sites are free to use and you’re NOT under any obligation to buy insurance from any agent because you got a quotes from them — It’s entirely free!

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