Hey,
Latest MSN Money web site article cites State Farm insurance for failing to insure and turning into a national data base a home that DID NOT file a claim but reported water damage. Article states that many insurers are turning to this data base of national insurers to see if any claims or damage of been reported r/t water damage ( roof repairs, basement problems, water leaks) going back 5 years. Article states that it has derailed some owners plans to sell their home.
It seems that now there is something else to be sure of before you purchase a rehab home.
Peace,
Richard
Thanks for the heads-up Richard. Here’s the link for others.
http://moneycentral.msn.com/content/Insurance/Insureyourhome/P35345.asp
Richard,
That is why you should use an INDEPENDENT insurance broker, who will advise you properly on your claim. State Farm isn’t a bad company but they tell you to call all claims to there 1-800 number, which automatically goes on your C.L.U.E. report.
I have a client who HAD all his insurance through State Farm and said he had no claims on a 25 unit building. It turns out, 5 claims showed on the CLUE report. Nothing was ever paid out but the client was never made aware these go on the C.L.U.E. report.
When buying a house, some insurance companies care about past claims and some care about the person buying the house’s past claims.
It pays to shop around.