subject: Get CLUEd Up Before Buying | History of Water Damage Can Effect Home Insurance [print this page] Get CLUEd Up Before Buying | History of Water Damage Can Effect Home Insurance
It is common knowledge that if you make a claim on your home insurance you can have an adverse effect on your insurance rates, or you could risk getting your policy completely cancelled. But it is not so commonly known that a properties claims history can equally jeopardise your insurance.
Even if you have never previously made a claim, buying a house which has a history of claims could result in having to pay an unexpected price. Insurance companies exchange information on previous claims to protect themselves with (obviously) no regard for the new homeowner, who is now knee deep in burdening the responsibility should an accident occur. History of water damage is a particular qualm for Insurance companies; if water damage repairs are not conducted thoroughly there is a risk of the water damage reoccurring which can result in a big pay up for the insurance company.
If you are considering purchasing a property, you can request a Comprehensive Loss Underwriting Exchange Personal Property (CLUE) reportwhich comprehensively details a seven-year history of all claims made on a property. A single report of water damage can be enough for an insurance company to seriously reduce, or even deny cover.
Those who are considering purchasing a property in an area at risk of flooding are particularly at risk. A CLUE report can tell you whether water damage repairs were a regular occurrence with previous homeowners. Homes at risk of flooding are also harder to sell, so if you are not too put off by the risk of recurring water damage you can use your CLUE knowledge negotiate a significantly lower price.
Before you enter into any kind of contract it is important to ensure that you can get comprehensive insurance cover. Accidents are inevitable by nature; some are more predictable than others. By getting CLUEd up and arming yourself with the same knowledge as the insurance company, you put yourself in a far less vulnerable position.
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