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Do NOT File a Home Insurance Claim
By Stephen Bucaro
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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