Before closing on a property it is a good idea to call your insurance person, have them do a check on the property your are purchasing, there are circumstances that would prevent a policy being issued or at a greater expense because of previous claims
Insurers now use insurance scores and claims databases to underwrite insurance applications.
An insurance score is a credit-based statistical analysis of a consumer's likelihood of filing an insurance claim within a given period of time in the future. According to the insurance industry, studies have shown a correlation between a consumer's financial history and his/her future insurance loss potential. Thus, insurance companies believe the use of credit helps to underwrite an applicant at a cost that reflects their specific risk.
Actuarial studies conducted by insurance companies have shown a correlation between a consumer's prior claims history and his/her future insurance loss potential. Claims databases, like the Comprehensive Loss Underwriting Exchange (C.L.U.E.), database, have existed since the 1980s. The databases provide insurance companies claim history information Only those insurance companies that contribute claims can access data on new business applicants. Claims databases contain information including 1) Identifying Information - Name, Current and Previous Addresses, Social Security Number, Telephone Number, Date of Birth, 2) Claim Information - Date of Loss, Name of Insurance Company, Policy Number, Claim Number, Address, Cause of Loss, Amount(s) Paid, Claim Status, Insured, Claimant and 3) Inquiries - Identifies insurance companies that have received a copy of the consumer's claim history report, typically during the past 2 years.
ChoicePoint is one major provider of insurance scores and claims databases. They have recently made their databases available to consumers who would like to check any information about themselves included in the CLUE database or obtain a copy of their insurance score.
Five Star Mountain Realty 102 West Blue Ridge Street "PO BOX 637" Stuart, VA 24171