Investment & Financial Articles
Title: Do NOT File a Home Insurance Claim
Author: Stephen Bucaro
Article:
You can PAY for home insurance, but don't try to actually USE
your home insurance or you may be blacklisted by the insurance
companies. The home insurance companies only want to TAKE in
money, not PAY OUT any money. On Jan. 2, 2003 CBS Evening News
exposed a scheme by home insurance companies to blacklist
customers who file claims.
According to the CBS Evening News report, the insurance industry
uses a secret system called CLUE (Comprehensive Loss
Underwriting Exchange) to blacklist customers who actually try
to use their insurance. The system was originally set up to help
companies detect fraud, But now it's being used in a scheme to
blacklist customers who use their home insurance.
Several home insurance companies say they are blacklisting
customers who file claims because "claim losses outweigh
premiums". But consumer advocates say a look at the companies
financial records shows they are in financial trouble because of
big Enron and Worldcom stock market losses.
According to the CBS Evening News report, if you try to make a
claim on your home insurance, you could be placed on the
Insurance Industry Blacklist for five years. During that period
you will either be forced to pay outrageous premiums, or you
will be without insurance. If you try to sell your house, you
will find it is unsellable, because it is uninsurable.
Your best option is to continue to pay your home insurance
premiums, but if something happens, like a pipe breaks or a
storm damages your home, pay to fix it yourself. Do NOT make any
claims against your homeowner insurance policy or you may be
blacklisted by the insurance industry. The home insurance
companies only want to TAKE your money, not PAY OUT any money.
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