Do Property Insurance Companies Track Claim History?

As a property owner, you know how important it is to have adequate insurance coverage. Whether it’s your home, rental property, or business, having a property insurance policy in place can provide peace of mind and financial protection in the event of a covered loss. But have you ever wondered if property insurance companies keep track of your claim history? In this blog post, we’ll explore this question and provide you with valuable information on how insurance companies deal with claims.

Firstly, it’s important to note that insurance companies do track claim history. When you submit a claim, it becomes a permanent record in the insurer's database, and future claims adjusters will have access to that information. This information allows insurers to assess risk and price their policies accordingly. If you consistently file claims, you may be deemed a higher risk, and your insurance premiums may increase as a result.

Secondly, many insurance companies use a claims database to track claims history. One of the most common databases is the Comprehensive Loss Underwriting Exchange (CLUE), which is operated by LexisNexis. The database contains information on claims submitted by policyholders, whether the claim was paid or denied, and the amount paid out. Insurance companies use this information to identify policyholders who have submitted frequent claims, which could result in higher premiums or even policy cancellations.

Thirdly, it’s important to note that not all claims are created equal. While insurance companies track all types of claims, they may only use certain types of claims to assess your risk. For example, if you frequently submit claims for water damage, it may indicate a problem with your plumbing system or a leaky roof. This type of claim could result in a higher risk assessment and higher premiums. On the other hand, if you have multiple claims for incidents that were not your fault, such as storm-related damage, it may not impact your risk assessment.

Fourthly, it’s important to note that insurance companies are required to follow certain regulations when using claims history to make decisions about policy premiums and coverage. The Fair Credit Reporting Act (FCRA) and state insurance regulations limit the use of claims history in underwriting decisions. Insurers may not discriminate against policyholders based on their claims history, and they must provide notice and an explanation if they choose to cancel or non-renew your policy due to your claims history.

Finally, it's worth noting that working with a public adjuster can help you navigate the claims process and potentially minimize the impact of claims on your insurance premiums. Public adjusters work on behalf of policyholders to manage claims and obtain the most favorable settlement possible. By working with a public adjuster, you can ensure that your claim is handled properly and that any potential increase in premiums is minimized.

Conclusion

In conclusion, insurance companies do keep track of claims history, and they use this information to assess risk and price policies accordingly. While having multiple claims may impact your risk assessment, insurance companies must follow certain regulations when using claims history to make decisions about policy premiums and coverage. If you're concerned about the impact of claims on your premiums, working with a public adjuster can help you navigate the claims process and ensure that you receive the most favorable settlement possible. Contact Ultra Property Damage today for a free consultation and help with your property damage claims.