Black Homeowner Update – Secret Report Insurance Companies Keep on Your Home

Black homeowners continue as the most under insured, over-charged and least compensated for damages of any racial group. Partly because of quiet discrimination (insurance companies call it added risk) and lack of information, Black homeowners continue to pad the profits of insurance companies more than any racial group.With sweeping changing happening in the insurance industry as we speak, few homeowners, especially Black homeowners have a source that can keep them updated on those changes.In this week’s newsletter I’ll discuss one of the major changes insurance companies continue to use on what they call risky (code word … minority, urban homeowners and neighborhoods).More and more home insurers are turning to a secret database called the Comprehensive Loss Underwriting Exchange (or C.L.U.E). Despite record profits as reported in the Los Angeles Times and USA Today, home insurance companies worry about increasing payouts for water and mold damage claims.This new trend could make it harder for you to sell or buy a home that’s had a past water or mold damage claim. Why? Because more insurance companies make it a point to check if there’s any past water or mold damage claims made on a home before insuring or re-insuring a home.In fact, many insurance company experts report an increasing number of companies using the C.L.U.E database to refuse coverage based on a homes record of claims made.Financial institutions have the FICO credit scoring, now home insurance companies have the C.L.U.E database. This is a secret most homeowners don’t know, except the homeowners smart enough to read this newsletter.I’ll show you simple ways to protect yourself later in this article, but first let me tell you a little more about this secret database insurance companies don’t want you to know about.The Comprehensive Loss Underwriting Exchange, managed by ChoicePoint collects, stores and issues reports to members. The information stays in their database for a maximum of five years according to ChoicePoint.Insurance companies continue to look more aggressively for homes that could trigger future claims, like water or mold damage. More home sales continue to fall through because of insurance companies increased use of the C.L.U.E database, if buyers not able to get insurance they can’t finance the deal, simple as that.Now your home could possibly receive black ball status for filing one claim, not to mention getting paid for a claim. This is insane, but true.Despite this alarming new trend used by insurance companies, you have ways to protect yourself and your rights.1. Avoid telling your insurance company or agent about any problems with your home unless your 100% sure you’ll file a claim. Insurance agents can be friendly and a good source of advice in the past, but understand any problems you report could go into the C.L.U.E database. The Result? They could use that information to raise your rates or in some serious cases refuse to renew your policy.2. Consider buying a home warranty and use that as protection for minor accidents and repairs, instead of filing a claim with your insurance company. In most cases it may be better to pay for minor damage yourself than file a claim with your insurance company. In today’s climate you have to consider the risk of filing a claim with your insurance company. I know it sounds crazy – but it’s the new “insurance coverage” reality we live in now.3. Write and support local insurance advocate groups in your state. Even though most do it with limited funds, they’re fighting to make sure insurance companies give you as a fair shake as possible, even when politicians are afraid to. They do it behind the scenes – in the trenches, without the glow of T.V cameras or fanfare. So give them your support and encouragement, they exist to help you. Even if you can’t send them a donation write them a letter of encouragement.4. Get a C.L.U.E. This is another secret most homeowners don’t know – and insurance companies don’t advertise. You’re entitled by law to receive a copy of your homes CLUE report once a year or if you’re denied insurance coverage.You also under protection of federal law have a right to dispute or question any outdated, inaccurate or false information on your CLUE report. Many homeowners have found inaccurate information that affected their insurance rates. Have you checked yours lately?Conclusion.Now that you have a clue about the secret C.L.U.E report insurance companies keep on your home, you have the information to protect yourself better. Just knowing such a report exist will help make you a more informed homeowner and help you keep your rates down.You’ll also have a way to protect yourself from insurance company surprises. In addition, if a surprise should happen such as a drastic rate increase or unexpected cancellation, you have the tools to fight back.I’ll continue to keep you informed of major changes quietly taking place in the home insurance industry. With changes happening so fast I’ll give you new ways to save money and frustration – your friendly agent won’t tell you. Be sure to share this with other homeowners you know.Protect Yourself and Your Rights.
Insurance Companies New Secret Weapon