Have you heard about CLUE? It is a database used by insurance agents to help calculate the risks when a customer is applying for a home insurance policy. However, is this insurance database public record? Find out more in the article below.
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Who can have access to a homeowners insurance record?
As a rule, only the parties involved are given access to the complete and updated homeowners insurance record. The policy owner and the insurance company are considered to be the parties involved in this case. Both parties are protected by the law in terms of their right to access the insurance record through the F.A.C.T. Act. If interested parties wish to have access to the record, the interested party can ask the policyholder to request a copy of the policy. Insurance companies don’t have the right to disclose any information to unrelated parties, except when mandated by the law.
Each policy owner has the right to request a free copy of their insurance policy every year according to the Fair and Accurate Credit Transactions Act. Also known as the FACT Act, this act manages and regulates who can acquire any information pertaining to insurance policies.
The Comprehensive Loss Underwriting Exchange or CLUE is a database that keeps a list of previous claims made by insurance customers. This helps insurance companies to keep track of the losses filed by each client to help in the investigation of one’s claims history. With the information on this database, insurers are able to determine the risk involved when dealing with a specific client.
In general, CLUE will retain the information on their database for 5 years. The information found in the CLUE database would include the client’s social security number, property address, and any additional data regarding the insurance claims made by the homeowner.
Since the CLUE database contains details that may increase one’s insurance premium, the federal law mandates that the policy owner may contest the information found here. This means that the insured should also be given access to the CLUE database when necessary. The information on the CLUE database will affect the insurability of a policy owner. Due to this fact, the insurance owner can contest any misleading or wrong information found on the CLUE database.
In this manner, the insurance policy may be treated as a public document. This is because this may be released to potential homebuyers if they request for it. However, the copy of the CLUE can only be released to the realtor or buyer through the insurance policyholder and not through the insurance company. Only the insured will be given consent to release this information.
The Importance of CLUE for Different Parties
Insurance Companies – The CLUE database can help insurance companies determine the risks involved when insuring a homeowner. Since the database includes data on the claims filed by the insured, it can help the insurance company decide if the policy will be too big of a risk for them to approve.
Potential Homebuyers – When you put your property on sale, the potential homebuyer would want to know the damages that have occurred to the property. Since insurance claims are subject to the approval of the insurance company, it will show if the homeowner is diligent when it comes to the maintenance of the property. This will also allow them to get a closer look at the actual state of the home that they plan on buying.