Homeowners' Insurance Claims and Consumer Rights
An insurance claim from a homeowner can mean a canceled policy, higher insurance premiums and a raised score on your C.L.U.E., or Comprehensive Loss Underwriting Exchange record, which determines how future insurers will evaluate your claim risk. Even if you report a problem to your insurer but do not file a claim, your C.L.U.E. score can rise. Fortunately, there are homeowners insurance laws to protect your claim rights.
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Getting a C.L.U.E.
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The amount of money you spend on homeowners insurance premiums is based on many personal factors, such as the value of your home, your credit score and the type of policy you choose. What most consumers do not realize is that insurers also look at your auto and home insurance claim history, which is determined by your nationally accessible C.L.U.E. report. Your report may also have erroneous information, so it's important to familiarize yourself with your report before choosing an insurer.
The FACT Act
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Like credit reports, a free copy of your C.L.U.E. report is available annually, thanks to an amendment in the FACT, or the Fair and Accurate Credit Transactions Act of 2003. Under the FACT Act, insurers must also warn you if they adversely update your C.L.U.E. report after a claim. You can also request another free copy if your insurer cancels a policy, denies coverage or raises your premium. For a link to the Lexis Nexis Personal Reports website, which provides your free annual C.L.U.E. report, see the Resource section.
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Filing Complaints
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If you feel that your insurer has denied your right to file a claim, you can file a consumer complaint with your state's insurance commissioner. In the U.S., insurance law is enforced at the state level, but your C.L.U.E. report is federally regulated. To file a complaint about any issues with your report, you can go to the Federal Trade Commission (FTC). For a link to the National Association of Insurance Commissioners, which provides a link to each state's insurance commission website, as well as a link to the FTC website, see the Resource section.
Private Insurance Adjusters
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According to "Consumer Reports," consumers have the right to hire a third-party claims adjuster if they feel that their insurance claims adjuster is not up to snuff. Keep in mind that private adjusters come with a fee, which usually amounts to about 10 percent of the payout. Private adjusters can be found on the National Association of Public Insurance Adjusters website (see Resource section).
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References
Resources
- National Association of Public Insurance Adjusters
- Lexis Nexis Personal Reports: Order Your Free C.L.U.E. Report
- Federal Trade Commission
- National Association of Insurance Commissioners: MAP of NAIC States and Jurisdictions
- National Association of Insurance Commissioners: A Consumer's Guide to Home Insurance
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