In the past, I have written about the big three credit bureaus… Trans Union, Experian and Equifax. While there are several others, I would like to introduce you to a fourth; ChoicePoint.
ChoicePoint is the company that produces the CLUE reports (Comprehensive Loss Underwriting Exchange) that the insurance companies use to determine your risk, and therefore your rates, for your homeowners and auto insurance.
Much like the credit reporting bureaus, ChoicePoint gets it’s information from the insurance companies. If you file an auto or homeowner’s claim, the nature of the claim and the amount paid is reported to and stored by ChoicePoint. It is then sold to other insurance companies who use the information to determine your rates (and whether or not they will insure you).
If you have filed a claim in the recent past, you will probably have a CLUE report with ChoicePoint. If you have not, chances are you do not have a report. Also, much like the FACT Act that allows you to get a FREE copy of your credit report at least once a year, you can also get a copy of your CLUE report for both home and auto every 12 months. Those are available at ChoiceTrust. Make sure you get a copy of both reports!
Getting ready to purchase a home? Wouldn’t it be nice to get an insurance report on your potential new residence to see what types of claims have been filed on it? No problem. Go to ChoiceTrust and get a copy of the Home Seller’s Disclosure Report for just $19.50. A small price to pay for a little reassurance…
I hope this has opened your eyes a little, as most clients I speak with know nothing about ChoicePoint or that they are able to see (much less get a copy of) their insurance report. Much like your credit reports, they could contain errors that can cost you in the way of higher rates and even denials of insurance.
If you have topics you would like me to address, please send an email to scott@nwiloanguy.com and I will do my best to post as time allows.
Scott
Your best source for Indiana FHA loans, Indiana USDA Rural Development loans and Indiana 203(k) Streamline loans.
