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Is Big Brother Watching?
The next time you may be tempted to make a small claim on your home insurance policy… you may want to think twice before doing so.
Allow me to explain.
Clark Howard has told us many times not to make too many claims on your Atlanta homeowners insurance policy. We have all been encouraged to pay small claims out of pocket so that the insurance companies do not penalize us. Now you would think this would be enough to keep us out of water. Unfortunately though… it may not be.
In this article on moneycentral.msn.com it tells us that making a claim could actually make it difficult for you to sell your home later on down the road. Even worse… most people don’t have a CLUE that you could be penalized for the insurance claims made by a previous homeowner! These claims could damage the value of your home & perhaps even jeopardize the sale of your home in the future. (Even though you NEVER made a claim yourself!)
How is this even possible?
It turns out that insurance companies are relying more and more on a a huge industry database, called CLUE ( Comprehensive Loss Underwriting Exchange.) This extensive database will give them the information they need to make the decisions they needed to drop or deny coverage based on insurance claims that have been made on the home. It keeps track of every single claim ever made on each house.
The problem is that insurance companies are being overwhelmed with claims from natural disasters such as the hurricanes that wreaked havoc in Florida, Louisiana and Alabama. Then think about the thousands of homes that received water damage because of the Atlanta floods we had this year. As a result in order to protect themselves from water and mold damage, insurance companies can choose to deny coverage for any home if there was any claims or even a report of water damage problem in the past.
This means a person could find themselves in the position of having a home that no one will cover. This in turn means that they also own a home that they can never sell.
In a future article we will share some tips on how to protect yourself from this.
Lloyd Pro Group a Duluth Ga Nationwide Insurance agency has been helping families to protect what matters most with GA insurance since 1985. Lloyd Pro Group can be reached at (770) 497-1200 or at their website at http://www.lloydprogroup.com
