Monday, August 22, 2005

Saving Money on Insurance

When considering a home purchase, buyers on a budget must consider all
possible expenses regarding the home they are considering. There is a 'new' tool
available to home buyers that may help to maintain that budget.

The CLUE (Comprehensive Loss Underwriting Exchange) is
an electronic database of all insurance claims filed against personal and real
property (cars and houses). This is important to know about because the
information contained in these reports is very empowering to a prospective
purchaser of real estate or even current owners.

It is possible to use this database to lower your homeowner's insurance cost.
For example - If you are considering a home but before you finalize the purchase
you discover that according to the CLUE report, there have been five claims for
flood damage to the property. This tells you that 1., your insurance coverage
for this property is going to be very expensive because of the high risk for
loss and, 2., This property is prone to flood damage. You now know that you
should seriously consider looking at less risky properties or at least taking
this information into consideration and perhaps re-negotiate the transaction.
Perhaps there are some repairs that can be made to the property to limit the
chances of flooding. See, You're saving money already.

This is some good stuff to know but, I just had another thought; For me
anyway, insurance is a necessary evil. I pay and pay and pay every month. Car
insurance, homeowner's policies, business E&O, and more. Luckily I've never
had to use any of these policies (and probably never will) but, I'm glad I have
them just-in-case. (I just wish they were cheaper) So here's my thought, I'm a
low insurance risk - I know that and so does my insurance broker - The next time
around when I "insurance shop", I'll take my CLUE with me and use it
to negotiate lower premiums on my policies.


For more information visit your state's insurance commission's website or ChoicePoint
(the provider of the CLUE Report). If you would like to receive a brochure
on ways to lower your homeowner's insurance costs,
e-mail me
or call 562-433-1914
and let me know where you want it sent. I
can e-mail the information also. And don't worry, I won't put you on any
lists or contact you for any reason other than to get you the brochure.

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