Home Insurance

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jfn111
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Home Insurance

Post by jfn111 » Wed Apr 17, 2019 9:36 am

A fellow Realtor is having problems with a home not being insurable. I had never heard of companies stigmatizing a house and not the people making the claim.
Has anyone ever heard of this and a solution?
"Insurers have their own MLS called CLUE (Comprehensive Liability Underwriter's Exchange)... where they share information about homes... they all use it. And if the CLUE report says the home has had too many claims... a house can become uninsurable."

SimonJester
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Re: Home Insurance

Post by SimonJester » Wed Apr 17, 2019 11:06 am

I have read about this, here is an article explaining the issue:

https://www.insure.com/home-insurance/past-claims.html

Its one reason to only file an insurance claim for larger losses...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

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willthrill81
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Re: Home Insurance

Post by willthrill81 » Wed Apr 17, 2019 11:38 am

SimonJester wrote:
Wed Apr 17, 2019 11:06 am
I have read about this, here is an article explaining the issue:

https://www.insure.com/home-insurance/past-claims.html

Its one reason to only file an insurance claim for larger losses...
I wasn't aware that this could happen, but it makes perfect sense.

If I was buying a property, I would now request a CLUE report from the homeowner before purchase as evidence of the property's insurability.
The Fair Credit Reporting Act guarantees you the right to receive a free copy of your loss history report if you are denied insurance due to information contained in it. Additionally, if you have a dispute with an insurer about the information in the report, you can ask that your account of the events be included in the report. You can order a free copy of your C.L.U.E. report once every 12 months.

Unfortunately, you can't order a C.L.U.E. report if you are not the homeowner. Prospective buyers aren't allowed to request a CLUE report for a home they want to purchase. "(But) there's nothing stopping you from asking the homeowner to provide you with a copy as a condition of the sale," says Wilson. She believes such requests will become commonplace.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

SimonJester
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Re: Home Insurance

Post by SimonJester » Wed Apr 17, 2019 12:52 pm

I wonder how prevalent this issue actually is...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

passivestream
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Re: Home Insurance

Post by passivestream » Wed Apr 17, 2019 12:56 pm

It happens for sure. Licensed Property and Casualty agent here. One of the prominent companies in the US that handles middle to high net worth individuals just decided they are taking a stance on water claims. If there is a water claim and you are the homeowner, or the home previously had a water claim. You must install a whole home leak detection system (units under all sinks) or this insurance company will cancel or not write your insurance.

daheld
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Re: Home Insurance

Post by daheld » Wed Apr 17, 2019 1:32 pm

passivestream wrote:
Wed Apr 17, 2019 12:56 pm
It happens for sure. Licensed Property and Casualty agent here. One of the prominent companies in the US that handles middle to high net worth individuals just decided they are taking a stance on water claims. If there is a water claim and you are the homeowner, or the home previously had a water claim. You must install a whole home leak detection system (units under all sinks) or this insurance company will cancel or not write your insurance.
Do you have any experience with this issue related to aluminum wiring? We own a home with aluminum wiring and read horror stories about insurers not wanting to extend coverage, but we had zero issues getting multiple quotes from multiple insurance companies. I'm just wondering if you think insurers refusing coverage to homeowners with aluminum wiring will become more prevalent, or if you have any specific input. Thanks!

passivestream
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Re: Home Insurance

Post by passivestream » Wed Apr 17, 2019 2:02 pm

Depends on the area of the country you are in. Many companies steer clear of Aluminum wiring but some are ok with it as long as the updates that are recommended are made. But Aluminum isn't a new problem, and insurance companies fear water more than fire so I think you are ok.

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jfn111
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Re: Home Insurance

Post by jfn111 » Wed Apr 17, 2019 2:24 pm

Thank you all. Very informative.

daheld
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Re: Home Insurance

Post by daheld » Wed Apr 17, 2019 3:16 pm

passivestream wrote:
Wed Apr 17, 2019 2:02 pm
Depends on the area of the country you are in. Many companies steer clear of Aluminum wiring but some are ok with it as long as the updates that are recommended are made. But Aluminum isn't a new problem, and insurance companies fear water more than fire so I think you are ok.
Thanks. Our home insurance did not ask us to make any updates whatsoever. I decided on my own to have Alumiconns installed on all devices just in abundance of caution. I also feel like if homes with aluminum become more and more rare in, say, 50 years, it might be increasingly likely that insurers will require remediation of some sort.

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