How Long Do Claims Stay on Home Insurance?
Uncover the enduring presence of home insurance claims and their influence on your future policy options.
Home insurance claims are formal requests to your insurer for financial compensation due to a covered loss or damage to your property. Understanding how these claims are recorded and for how long they remain relevant to insurance companies is important for homeowners. This article explains the systems that track home insurance claims and the typical duration they affect future insurance considerations.
Understanding the Claims Database
A primary system for tracking home insurance claims is the Comprehensive Loss Underwriting Exchange (CLUE) report. This specialized consumer report is maintained by LexisNexis, a consumer reporting agency. The CLUE database provides insurance companies with a centralized source of claims history information for risk assessment and underwriting decisions.
A CLUE report includes specific details about past insurance claims related to a property and its policyholders. This information typically encompasses the date of loss, the type of loss (e.g., fire, water damage, theft), and the amount paid by the insurer. It also lists the policy number, the property involved, and the status of the claim, indicating if it’s open or resolved. This detailed record allows insurers to evaluate the risk associated with a property and its owners when setting premiums or offering new policies.
How Long Claims Are Tracked
Home insurance claims generally remain on a CLUE report for a period of five to seven years. This timeframe represents how long the claim data is accessible to insurers through the CLUE database. While most insurers primarily review claims within this window, some may look back further or focus on a shorter period, such as three years, depending on their specific underwriting guidelines.
It is important to distinguish between a claim inquiry and a claim that results in a payout. If you contact your insurer merely to ask a question about coverage or a deductible without formally reporting a loss, this should not be recorded as a claim on your CLUE report. However, if a loss is reported, even if no payment is made because the damage falls below the deductible or coverage is denied, it may still appear on the report. The presence of any reported loss, whether paid or not, can influence an insurer’s perception of risk.
What Makes Claims More Relevant
While claims remain on record for a standard period, certain characteristics can make them more significant in an insurer’s evaluation. The type of claim filed is a major factor; for instance, water damage or mold claims may be viewed with greater concern due to a higher potential for recurrence and significant repair costs. Claims related to preventable issues, such as a burst pipe from neglected maintenance, might carry more weight than those from unpreventable events like natural disasters.
The frequency of claims also plays a substantial role. Multiple small claims filed within a short period can indicate a higher risk profile than a single, large claim, even if the total payout is similar. Insurers often perceive a pattern of frequent claims as a predictor of future losses. The severity and amount of the payout are also considered, as larger financial impacts from past claims suggest a greater potential financial risk for the insurer. Additionally, liability claims, which involve damage or injury to others, are assessed differently than property damage claims affecting only your home.
Obtaining Your Claims Report
Homeowners can obtain a copy of their own CLUE report to review their claims history. This is permissible under the federal Fair Credit Reporting Act (FCRA), which grants consumers the right to access information compiled about them by consumer reporting agencies. You are entitled to one free CLUE report every 12 months.
To request your CLUE report, you can directly contact LexisNexis, the company that generates these reports. This can typically be done online, by phone, or through mail. For phone requests, LexisNexis provides dedicated consumer lines, such as 1-866-312-8076 or 1-888-497-0011. If you identify any inaccuracies or incomplete information on your report, you have the right to dispute them with LexisNexis. LexisNexis will investigate the disputed information with the reporting insurer and provide results within 30 days.