Prepare a list of questions that you may need to ask your insurance professional. These can be things you want to find out now or things you want to cover when it is time to renew your policy.
Consult one of the Purse Strings approved professionals (it’s free), either for advice or for a recommendation (Purse Strings only recommends professionals who are reputable, honest, and who will listen to you and answer all of your questions).
Write down some things you want to look into further or things you want to consider now that you have more knowledge about homeowner’s insurance.
Make a to do list. Be sure to include things such as creating a home inventory or obtaining your CLUE report (see below).
Insurance companies share information via CLUE. Just like there are credit reporting agencies that track all of your consumer debt data and provide that information to banks and retailers, there is another database that stores information about any insurance claims you make. This database is called CLUE (Comprehensive Loss Underwriting Exchange).
Insurers consult this database before they offer you coverage. This database is maintained by an information vendor, not another insurance company. The database acronym is CLUE, which stands for Comprehensive Loss Underwriting Exchange.
If you want to know what your CLUE report says, you can obtain a copy.
Good insurance may seem expensive. It is the one bill you will pay your whole life! You may pay off your mortgage and your car, but will always—and should always—have good insurance coverage.
Homeowners Insurance is best used for catastrophic incidents. Some state a rule of thumb as one claim every ten years. Reporting many smaller claims will surely make your insurance premium increase. Many carriers may suggest carrying a higher deductible, which helps lower premiums and helps insurers determine how much risk they want to take on themselves. When filing a claim, it is good to weigh the cost of damages and then the fact that up to a 30% surcharge could go on your policy for up to 5 years.
Just like credit reporting agencies that track all of your consumer debt data and provide that information to banks and retailers, the CLUE database stores information about any insurance claims you make.