Luxury Cars = $150,000
Forgetting to turn the water off when yo go on a January vacation = Priceless
Posted on 05/16/2003 11:10:23 AM PDT by Pro-Bush
Some Pay High Price for Using Homeowners Insurance Thu May 15, 8:55 PM ET
Jeanette Pavini
You can watch this full story Thursday at 11pm on Channel 5.
Janice Harrison spent $4000 to fix the damage caused by a leaky water pipe under her house, and asked her insurance company if her homeowner's policy would cover some of the repairs.
"They said, 'No. Absolutely not,'" she said. "The only way it would be covered is if a tree fell on the pipes or a car hit the pipes. And I said, "Well, that didn't happen," and that was the end of the conversation."
But that wasn't the end of the problem. A month later, Harrison got a letter from the insurer saying her claim was denied, even though she never submitted one.
"Then I received my insurance bill for 2003," she said. "It's almost $200 more than it had been the previous year, with no explanation."
Until she asked about her policy, Harrison's insurance had only increased about $7 a year in the 30 years she owned her home. Like thousands of other homeowners, Harrison found that just asking if a loss is covered can trigger a negative notation on her insurance record.
Such inquiries affect a homeowners CLUE report. CLUE is an acronym for Comprehensive Loss Underwriting Exchange, an industry database on insurance claims. Insurers use CLUE reports to manage their risk.
The report is divided into two parts. The first part is insurance claims reported on your property in the last five years, whether or not you owned it during that time. The second part is renter's or homeowner claims you have made. A loss claim, or even a simple inquiry, can lower a CLUE score, raising premiums and even rendering some policies unrenewable.
"If the customer says, 'I had a loss on this date, is it covered,' we're obligated by code to process that claim," said insurance agent Leonard Stone. "It also benefits the agent, because the customer can't leave, even though it's not paid by the insurance company. It's picked up by CLUE, and nobody else will offer them insurance -- no preferred company will offer them insurance -- until that claim is 3 years old."
Low CLUE scores can make it more difficult to buy or sell a home. Consumers with unfavorable CLUE reports may not be able to get insurance or may have to pay very high premiums.
According to the Department of Insurance, state law prohibits insurers from entering simple inquiries into the CLUE database. The department advises consumers to check the accuracy of their CLUE reports. You can get a copy of your CLUE report for $12.95 at www.choicetrust.com.
If there's a problem, contact your insurer. If you still need assistance, call the Department of Insurance hotline at 1-800-927-4357.
For more Bay Area news and information, visit kpix.com and www.kcbs.com.
FMCDH
Homeowners insurance is not "required," except by a lender if there is a mortgage on the property. The gubmint doesn't force you to have homeowners coverage.
Luxury Cars = $150,000
Forgetting to turn the water off when yo go on a January vacation = Priceless
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