Do Home Insurance Claims Follow You?

A home insurance claim involves a formal request by a policyholder to their insurance company for compensation due to a loss or damage covered by their policy. This process begins when an incident occurs, such as a fire, storm damage, or theft. Homeowners often wonder if these claims remain associated with their property or personal insurance history. Understanding how claims are recorded helps clarify their long-term implications.

Mechanisms for Tracking Claims

The insurance industry tracks home insurance claims, providing insurers with a comprehensive view of a property’s and a policyholder’s past loss history. The primary tool for this tracking is the Comprehensive Loss Underwriting Exchange, known as the C.L.U.E. report. This report is maintained by LexisNexis.

A C.L.U.E. report details insurance losses associated with a specific property or an individual. It contains information from the past five to seven years, documenting the date of any reported loss, the type of loss (e.g., wind, hail, water, theft), and the amount paid out by the insurer. It records the property address and the name of the policyholder.

The C.L.U.E. report assists insurers in their underwriting process. When a homeowner applies for a new policy or seeks to renew an existing one, insurers access this report to assess the risk associated with insuring that particular property and individual. This detailed claims history allows insurers to make informed decisions regarding policy eligibility and pricing. Insurers use this data to identify patterns of frequent claims or specific types of losses that might indicate higher future risks.

Impact on Insurance Coverage and Costs

A homeowner’s claims history significantly influences future home insurance premiums and the ability to secure or renew coverage. Insurers generally view a history of multiple claims or certain types of severe claims as an indicator of increased risk. This often translates into higher premiums for the homeowner.

Premium increases are a common outcome following a claim. The specific amount of the increase can vary based on the claim’s severity, the type of damage, and the homeowner’s overall claims frequency. For instance, multiple water damage claims within a few years might signal a persistent issue, leading to more substantial premium adjustments than a single, isolated incident. Insurers aim to adjust rates to reflect the perceived likelihood of future payouts.

In some scenarios, a history of numerous claims or particularly costly events can affect a homeowner’s insurability. Insurers might decide not to renew a policy or decline to offer new coverage if the claims history suggests an unacceptably high risk. This can compel homeowners to seek coverage from non-standard or surplus lines carriers, which typically offer policies at much higher rates. Certain types of claims, such as those related to liability or repeated water damage, are often scrutinized more closely than a single weather-related claim that might be beyond the homeowner’s control.

Claims generally follow both the property and the policyholder. A claim filed on a property will be associated with that address in the C.L.U.E. database, meaning it can affect the insurance prospects for future owners of that home. For example, a home with a history of foundation issues and related claims might be more difficult or expensive to insure for a new buyer. Simultaneously, the policyholder who filed the claim will have that incident recorded under their name, potentially impacting their ability to secure favorable rates when insuring a different property in the future.

Accessing Your Claims History

Understanding your home insurance claims history helps you manage your insurance needs. Consumers are legally entitled to access their C.L.U.E. report annually, free of charge, similar to how they can obtain a free credit report. This right is granted under the Fair Credit Reporting Act (FCRA).

To request your C.L.U.E. report, you can directly contact LexisNexis, the company that compiles and maintains these records. Their website typically provides a clear pathway for consumers to submit a request online. Alternatively, you can request the report via mail or telephone, providing necessary personal identifying information to verify your identity.

Once you receive your C.L.U.E. report, it is important to carefully review all the information presented. You should check for the accuracy of claim dates, the types of losses recorded, and the amounts paid out. Ensuring the report is free of errors is important, as inaccuracies could unfairly impact your future insurance rates or eligibility. If you find any discrepancies, you have the right to dispute them with LexisNexis, which will then investigate and correct any verified errors.