Released: October 24, 2007

Insurance claims could haunt houses

Source: David Lazarus, Los Angeles Times (Free Registration)

If past history is any measure, many homeowners affected by the wildfires burning throughout Southern California will find that claims they submit to insurers will result in higher rates or even dropped policies.

What they, and you, may not know is that virtually all such claims also will end up in vast, privately run databases that are routinely accessed by the insurance industry to determine what rates they’ll charge - or if they’ll cover you at all.

In other words, a claim filed with one insurer can be used by another insurer to jack up premiums, even though your record with that other insurer may be spotless.

Moreover, the databases don’t just reflect all claims filed by individual policyholders.

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