Beware of Claims That Can Increase Your Insurance Rates

Beware of Claims That Can Increase Your Insurance Rates

The need for homeowner’s insurance rates in Miami is a no brainer. Between fires, hurricanes, water damage and theft, there are plenty of things that can go wrong and destroy your property. Sooner or later, nearly every homeowner may need to file an insurance claim to repair damage or to recover lost property. But when is the best time to contact your insurance agent? The easy answer is whenever your property has experienced damage. But the answer may not be quite that simple. In some cases, the insurance company decide to raise your premiums significantly. In other cases, the homeowner may have their name entered into a database that could prevent them from obtaining or keeping the coverage in the future.

Do You Have a clue about CLUE?

There are two types of databases which record the majority of homeowner’s insurance claim–CLUE and A-PLUS. CLUE is an acronym for Comprehensive Loss Underwriting Exchange. A-PLUS deals with automobile property loss. More than 98% of home and auto insurance companies submit all their property loss and damage information to the CLUE database. The original purpose of these databases is to prevent insurance fraud. But insurance companies are now using it a for a completely different reason. Insurance companies use CLUE reports to check the claim histories of policyholders as part of a screening process. Unfortunately, in many cases, an applicant may face paying higher premiums. Even worse, they could be denied insurance rates coverage altogether.

Questionable Insurance Practices

Most insurance companies place a priority on helping their policyholders during very difficult times. However, there are some that often take advantage of the customers with some questionable business practices. For example, some insurance companies are submitting inquiries made by policyholders to their CLUE reports. Simply making an inquiry is not the same as making an insurance claim. But the results can affect a policyholder’s premiums.  Although this practice is frowned upon in the insurance industry, there are still some cases where these problems still exist.

One way to avoid these issues is to obtain your CLUE report. The information on these databases can last up to 7 years. Keep in mind, a homebuyer cannot obtain a CLUE report on a property they are considering to purchase. However, they can be made available from the seller. It can greatly benefit the seller because it demonstrates the property is in good condition and all repairs were completed properly.

When to File a Home Insurance Claim?

First, it is important to understand filing an insurance claim will not automatically increase your insurance rates. But if you have filed multiple claims in a short period, you are facing a higher risk for possible huge hikes to your premium. Insurance carriers generally reward homeowners who have been policyholders for a long time. If your home was damaged from a hurricane, windstorm or an act of God, you probably will not have to worry about higher rates.

A Miami Home Insurance Claims Lawyer Can Help

Every homeowner depends on their insurance company to provide much-needed help in case of damage caused by a catastrophe. Fire, pipe leaks and roof leaks can happen at any time. But when an insurance company fails to provide the necessary compensation to cover your damages and losses, an experience Miami home insurance lawyer can help. Attorney Jonathan Korin has spent years fighting for the rights of home and business owners. Over the years, he has represented everyone from the average homeowner to Fortune 500 companies. To learn more, contact the offices of Korin Law, P.A. and schedule a consultation to discuss your case.