Accidents happen. We all pay for homeowner’s insurance to mitigate disasters caused by a host of things like storms, fires, and water. Florida homes are expensive to insure compared to most places around the country. We tend to favor higher deductibles to offset high annual premiums. In Florida, the insurers split the deductibles for the type of peril: One deductible for hurricanes and the other deductible for “all other perils,” or AOP. The hurricane deductible tends to be 2% of the dwelling amount and AOP a flat $2500. Keep in mind that you can adjust these deductibles in either direction - it is logical that lowering deductibles will cost more.
If you encounter a small peril, you might be inclined to call your insurer to determine if you are covered and whether you should file a claim. A new claim is opened with the insurer upon your call. You may later decide to pay the damage outside of insurance, especially if the cost to repair ends up being less than the deductible. The insurer will still notify the Comprehensive Loss Underwriting Exchange (CLUE) of your claim. Once a CLUE incident is open, it remains on your personal report for 5-7 years. Most insurers will not sell you a policy with a CLUE incident. Therefore, your insurer mandated having your SSN on your application at the time your policy was bound. Most insurers, will, however, accept a new policy after a CLUE incident seasons for at least three years.
I invite you to call me personally before you call your insurer. Let us discuss options and possibilities prior to opening a CLUE event on your record. If you have a major peril, then by all means, make the claim – it is why you pay expensive annual premiums! The bottom line is to make a claim count and not simply create a CLUE incident that will likely eliminate the freedom of moving to any insurer for at least three years. Do not forget, I re-bid your home with all Florida A-Rated insurers each year so that you are always guaranteed the best coverage for the least amount.
