Chris Hackett, senior director of personal lines policy at the Property Casualty Insurers Association of America, says that there is a major correlation between claims that have been made and the likelihood of future claims. It is no surprise, therefore, that insurance providers will keep an eye on your claims history for determining your home insurance rates.
A negative history of filed claims does impact your home insurance rates. Nonetheless just because you have an unfavorable claims history, it does not mean you are doomed to higher prices or a null agreement. You can shop around to find out the cheapest companies ranked state wise for customers who have filed claims in recent history.
CSAA offers the cheapest premium at $1,126 in the state of Montana. In Texas, it is the American Strategic Insurance Corporation, at $1,233. At $1,390, Gulfstream P&C Insurance Company offers the cheapest premium in the state of Louisiana. The tables below compare the 10 cheapest providers in each of these three states for applicants with a negative history of files claimed.
Montana
| State | Company | Premium |
|---|---|---|
| Montana | CSAA Fire & Casualty Ins. Co. | $1,126 |
| Montana | USAA Casualty Insurance Company | $1,251 |
| Montana | United Services Auto Association | $1,286 |
| Montana | Safeco insurance company | $1,393 |
| Montana | allstate vehicle and property insurance company | $1,401 |
| Montana | USAA General Indemnity Company, | $1,404 |
| Montana | garrison property and casualty insurance company | $1,446 |
| Montana | Travelers Home & Marine Ins. Co. | $1,461 |
| Montana | Depositors Insurance Co.(Nationwide) | $1,500 |
| Montana | Mountain West Farm Bureau Ins. Co. | $1,796 |
Texas
| State | Company | Premium |
|---|---|---|
| Texas | American Strategic Insurance Corporation | $1,233 |
| Texas | Allied Property and Casualty Insurance Company | $1,352 |
| Texas | Trumbull Insurance Company | $1,394 |
| Texas | Twin City Fire Insurance Company | $1,463 |
| Texas | Texas Farm Bureau Insurance Company | $1,507 |
| Texas | Consolidated Lloyds | $1,640 |
| Texas | Texas Windstorm Insurance Association | $1,642 |
| Texas | United Property & Casualty Insurance Company | $1,665 |
| Texas | National Specialty Insurance Company | $1,671 |
| Texas | Nationwide General Insurance Company | $1,679 |
Louisiana
| State | Company | Premium |
|---|---|---|
| Louisiana | Gulfstream P&C Insurance Company | $1,390 |
| Louisiana | Pharmacists Mutual Insurance Company | $1,408 |
| Louisiana | Anchor Specialty Insurance Company | $1,604 |
| Louisiana | Maison Insurance Company | $1,618 |
| Louisiana | Family Security Insurance Company | $1,726 |
| Louisiana | Armed Forces Insurance | $1,726 |
| Louisiana | Americas Insurance Company | $1,818 |
| Louisiana | Coastal Select Insurance Company | $1,863 |
| Louisiana | Lighthouse property ins. Corp. (beacon) | $1,887 |
| Louisiana | Bankers Specialty Insurance co. | $2,043 |
There are two types of claims history that providers look into – claims made on the property, and the consumer’s personal history of filed claims. This means that if you are moving into a new home, the claims made by the previous homeowner also has an impact on the insurance price of the property, as that would be a part of the claims that have been made on the property.
At times, some providers may take advantage of a loophole in the existing laws. Even if a consumer consults with his/her provider regarding a potential claim and later pays out of their own pocket, without having obtained money from their provider, some providers still consider that to be a claim filed. Only with the exception of a few states like – Oregon and Texas, in all other states, there is no law prohibiting insurers from going ahead with this practice.
One solution to tackle a problem like this is to ask for a CLUE report. CLUE stands for Comprehensive Loss Underwriting Exchange and is owned by Lexis Nexis. It records claims filed by the homeowner in the last 7 years, including for the damages that were closed later on, with the owner having not obtained compensation from the provider. The Fair Credit Reporting Act grants you the right to ask for a CLUE report if you are denied insurance by your provider. In any case, it is a good idea to ask for CLUE report when you are buying a property.
The only catch is that only the homeowner reserves the right to demand a CLUE report. However, if you are not the owner, and you are looking to purchase the property, you can always ask the previous owner to provide you with a copy of the report.
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