How long do homeowners insurance claims stay on your record?
Home insurance claims stay on your record for up to seven years. Claims history is shared by insurance companies via the Comprehensive Loss Underwriting Exchange (C.L.U.E.), but not all information on that record will necessarily affect your home insurance policy.
“According to LexisNexis C.L.U.E…collects and reports up to seven years of personal property and auto claims,” says Travis Grassel of the Iowa Department of Insurance and Financial Services.
The length of time a claim stays on that record depends on the type of claim and the amount paid out.
Can other insurance companies see your claims?
Yes, other insurance companies can see your claims. They use the C.L.U.E. database as a network to share information.
This database has your name, address, policy information and any claims you’ve personally filed. It also has property information—that is, the claims history of a given property. So, if you move into a house, the C.L.U.E. system has a history of claims for that house, and insurance companies have access to that information.
Insurance companies use claims history as a major factor when determining rates. Statistically, filing one claim predicts future claims, which indicates higher risk. Higher risk means higher premiums.
Can insurance companies see previous claims?
Yes, your previous claims are included in the information shared between insurance companies.
The claims history of individuals and of properties are recorded and shared between insurance companies.
Previous claims come into play when you buy a new insurance policy and even when you buy a new home. The claims history of your new house can factor into your own insurance costs, believe it or not.
While realtors and potential homebuyers do not have access to a C.L.U.E. report before buying a house, they can ask that a home have a “clean” C.L.U.E. report as a contingency for the sale. This is because if you buy a home with a history of many claims, you could wind up paying more for your home insurance.
How many claims are allowed on a home insurance policy?
It depends on the insurance company, but the more claims you have, the higher the risk of losing your coverage. Most insurance companies look unfavorably at filing more than one claim per year.
“An insurance company may cancel an insured if they deem them as too much risk, so don't file small claims,” Grassel says. “A higher deductible may help and it may lower your premium.”
It’s important to note that not all claims are equal. Weather-related claims will not count in the same way as a fire claim, since the weather is out of your control, while fire prevention, to a certain degree, is within your control.
Do home insurance companies share information with each other?
Yes, home insurance companies share information through the C.L.U.E. database. However, they don’t communicate directly. If an insurance company does not report a claim to LexisNexis, which runs the database, that information will not be available to other companies.
Frequently asked questions
Are home insurance claims public record?
No. Only the homeowner can access the claims history for their home. Homeowners can request a C.L.U.E. Report, which shows their property's claims history, through LexisNexis by calling 1-866-312-8076 or visiting consumer.risk.lexisnexis.com.
Will my homeowners insurance go up if I file a roof claim?
Yes, your home insurance premiums will likely go up if you file a roof claim. However, the amount of the increase depends on what caused the claim and how many claims you’ve already filed. If it’s your first claim, you won’t see as much of an increase. For multiple claims or claims due to disrepair or negligence, you’ll see higher rate hikes.
Does your home insurance go up after a claim that is not your fault?
Yes, your rates will probably increase, but not significantly. Weather damage, for example, won’t increase rates as much as a fire in your kitchen since the weather isn’t your fault. However, if severe weather claims are increasing in frequency in your area, it will impact overall insurance rates.
Helpful home insurance tools and calculators
