What kinds of events/records can affect the ability to obtain insurance on a property being purchased?
A. A number of factors can affect the availability and cost of homeowner insurance on a property being purchased. For example, they include:a. past claims filed on the property (up to previous five years)b. poor insurance credit score of the prospective purchaser c. past claims filed by the property purchaser on other propertiesd. physical characteristics of property (e.g., leaky roof)e. characteristics of the property’s location (e.g., proximity to fire station, regional weather conditions) Q. How does the insurance company know what claims have been filed in connection with the property? A. Approximately 90% of all insurance companies contribute information regarding claims to an insurance industry database. When underwriting a new policy the insurance company may obtain a report from this system from one of a couple different sources to determine the property’s claims history. This report is most often identified as a comprehensive loss underwriting experience report or a “C.L.U.E.
