Why do unpaid homeowner claims stay on your record?
Saturday, October 24th, 2009 at
8:41 am
Pax asked:
I contacted my homeowners insurance company to question about a claim for a ***** in the ceiling of my bathroom. IF the cost of the repairs should be less than my deductible, the insurance company informed me that the claim will stay on my record and will affect my premiums regardless. Why is that the case? I was informed that they do not have a code to enter into their system indicating that the customer resolved the matter without assistance from the insurance company. This keeps your premiums up even when you don’t submit the claim. How is that right? It’s seems to border on illegal activity!
I contacted my homeowners insurance company to question about a claim for a ***** in the ceiling of my bathroom. IF the cost of the repairs should be less than my deductible, the insurance company informed me that the claim will stay on my record and will affect my premiums regardless. Why is that the case? I was informed that they do not have a code to enter into their system indicating that the customer resolved the matter without assistance from the insurance company. This keeps your premiums up even when you don’t submit the claim. How is that right? It’s seems to border on illegal activity!
Filed under: Homeowners Insurance
Like this post? Subscribe to my RSS feed and get loads more!
It should be illegal, but it is not. The best method it to get a quote for the work before you talk with the insurance company. If the cost is less than your deductible, don’t contact the insurance at all.
i know it *****.
anytime you call or file a claim, they note this on your record, regardless if they pay anything or tell you it is less than your deductible, so no claim is opened.
i worked for a homeowners company about 5 years ago and had numerous complaints from homeowners stating no claim was filed, or if claim filed and less than deductible their premiums went up as if they paid them.
all companies computers are set up for notes. when the policyholder calls in, they note the call and reason. in this case, say in 2 years this ***** gets bigger and say the ceiling collapse, then they will have a note that you inquired about it 2 years ago and guess what they could deny since you did not fix it.
if you are lucky and have a great agent, call the agent and pose questions. but also ask 1st if this goes on your record. i called on an auto claim and my agent suggested i take care of vs reporting to the insurance company since it would be part of my record. my agent never noted to my file, so i was not “:dinged”. but that is not a guarantee, since they maybe required to note to your file.
other suggestion is to call and pose the question, but don’t give your personal details. but remember most phone systems are set up to ID who is calling.
good luck
Whoa! “You contacted your homeowners’ insurance company?
Why didn’t you contact your agent? That ‘s what he’s there for! You are paying him to watch out for you. Who do you think the insurance company will look out for?
Because of how the system is set up. As soon as you put the claim in, it’s reported to the comprehensive loss underwriting exchange – a third party. It can be updated to show nothing paid, but cannot be erased, because it’s a third party record.
CLUE won’t erase it, because it shows a new insurer, that there was damage to your house – even if it wasn’t covered.