Watch insurance blackball???

[A.Sharp]

Hi guys,

Know I have posted about insurance before, and have finally jumped on the band wagon myself, however at a cocktail party the other evening I was alerted to some disturbing news (if it is correct)...

Is it true that if I have to file a claim, I will go in to a database that will make it difficult/more expensive/ impossible to get insurance in the future?

I used nationwide. And truth be known insured a date just. I'm starting to have second thoughts...

All thought with the new price increases its hard to say oh it's jut a date just, no biggie.

Anybody have a clue to the validity of what I was told?

[A.Sharp]

... And I was told any insurance, not just for jewlery.

[77T]

Funny you'd say, "Anybody have a clue..."

I wouldn't say "blackball" - but a poor claims history can raise your rates or get declined for coverage.

The CLUE database enables homeowner and automobile insurers to exchange information - without notice to you unless your state requires notice - about claims for loss of property. Here's a simple example of how the exchange system works:

1) Insurance companies feed information about property loss claims, perhaps even inquiries about coverage, into a central database.

2) If you file a claim for loss against your homeowner, auto or other policy, the insurance company adds this information to the national database.

3) The CLUE database is maintained by an information vendor, not another insurance company.

4) If you apply for insurance with another company - say, you move to another part of the country - the new insurance company can access the CLUE database and learn of your past claims.

So know your CLUE score is the best suggestion. Repeated claims in excess of premiums over a period of years would tag you with a low score for sure.

[CDNWatchNut]

As best I know, making a claim on insurance of any type will generally drive an increase in future premiums. Not sure if it would be cause for declining insurance when it comes to home insurance/possessions

[toph]

yes you claim your premium goes up.
It is the only thing you pay for that you never want to use.

[77T]

Originally Posted by CDNWatchNut

As best I know, making a claim on insurance of any type will generally drive an increase in future premiums. Not sure if it would be cause for declining insurance when it comes to home insurance/possessions

It's not automatic - depends on policy and your status with the company*.

Here's a link to the info I posted and more on how this works: http://www.privacyrights.org/fs/fs26-CLUE.htm

* Since the OP is US based, I'm limiting my remarks to our underwriters - things in ROW could differ.

[John in MA]

I have Allstate. Had to file two act of god claims for wind and hail damage as residuals form tornadoes and hurricanes. One in 2009 and one in 2010. My premium didn't go up and this is with a $500 deductible.

Just had to file a claim for my lost 16800. My agent told me that my premium might go up but my insurance shouldn't be dropped. He said he'd go to bat for me with either as the first two were beyond my control and not something I would have filed if not necessary.

A lot depends on the relationship you have with your agent for assistance, how long you have had their insurance, what type (i have had my auto, house, life, and allstate financial services for 12 years with allstate) if the underwriters try to screw you over.

[MoBe]

The insurance biz is just like Vegas,the house always wins!

[patek97]

Rates will go up,its on a rider and was told that form my insurance company,
watches over $3000 coverage come with my policy but over you need a rider.
went with a special In-depend insurer

[azguy]

make a claim, expect to pay more.....

[Mr. K]

Originally Posted by MoBe

The insurance biz is just like Vegas,the house always wins!

Funny/Ironic as gambling is to increase your risk of loss, insurance is to try to reduce your risk of financial loss.

Some do think of Insurance like Vegas, but in the same way as Vegas ( I suppose) if your house burns down and you get an all new house and belongings, I guess it is in a way like hitting a jackpot.

[Watch Professor]

This is why I removed my jewelry/watch insurance from my homeowner's policy. I now use Jeweler"s Mutual so that if I have a claim it won't affect my homeowner's policy.

[azguy]

Originally Posted by Watch Professor

This is why I removed my jewelry/watch insurance from my homeowner's policy. I now use Jeweler"s Mutual so that if I have a claim it won't affect my homeowner's policy.

good thinking

[HL65]

I have had several claims unrelated to watches costing tens of thousands and my premiums did not go up so I guess it all depends.

[A.Sharp]

Originally Posted by 77T

Funny you'd say, "Anybody have a clue..."

I wouldn't say "blackball" - but a poor claims history can raise your rates or get declined for coverage.

The CLUE database enables homeowner and automobile insurers to exchange information - without notice to you unless your state requires notice - about claims for loss of property. Here's a simple example of how the exchange system works:

1) Insurance companies feed information about property loss claims, perhaps even inquiries about coverage, into a central database.

2) If you file a claim for loss against your homeowner, auto or other policy, the insurance company adds this information to the national database.

3) The CLUE database is maintained by an information vendor, not another insurance company.

4) If you apply for insurance with another company - say, you move to another part of the country - the new insurance company can access the CLUE database and learn of your past claims.

So know your CLUE score is the best suggestion. Repeated claims in excess of premiums over a period of years would tag you with a low score for sure.

Thanks, this is pretty darn informative. I understood that making a claim on your auto or home could raise the premium, but i never really understood just how linked together all of this insurance info is...

[mannyv11]

I have had a few claims over my lifetime, and non of my premiums have gone up. I received a check from an insurance company for over 20k and still did not see a raise in my premiums. Since that has happened I still have no problem getting insurance on anything that I decide to put insurance on. Hope that helps

[steebee2]

I made a claim last year. I use State Farm. No increases in rates, and still carry the same insurance at the same rate. The watch was stolen In Aug 2011 and the Ins company procured a brand new watch sent to my front door directly by Rolex.

[mfserge]

Having an insurance claim does NOT always equate to an increase in premium. There are a lot of factors involved, how large is the claim, what is your claim history, how long have you been with the insurance company. There are a lot of factors that go into determining premium, making a claim may or may NOT increase your premium...but it sure won't result in a premium savings.

If you experience a loss and you decide to shop for a new carrier, the new carrier may ask you for your previous loss experience, in which they will see that you have had a claim and they may adjust your quote accordingly.

[handsfull]

Originally Posted by MoBe

The insurance biz is just like Vegas,the house always wins!

AKA: you lose.

Gotta love insurance.

[A.Sharp]

Originally Posted by mannyv11

I have had a few claims over my lifetime, and non of my premiums have gone up. I received a check from an insurance company for over 20k and still did not see a raise in my premiums. Since that has happened I still have no problem getting insurance on anything that I decide to put insurance on. Hope that helps

Sounds like good fortune.

[A.Sharp]

[QUOTE=steebee2;3356519]I made a claim last year. I use State Farm. No increases in rates, and still carry the same insurance at the same rate. The watch was stolen In Aug 2011 and the Ins company procured a brand new watch sent to my front door directly by Rolex.[/

Was it insured for the replacement value? Did you need to keep brining in a new appraisal each time there was a price increase, and if so, how did you get an appraisal for msrp and not market?

[Hairdude1]

Originally Posted by Watch Professor

This is why I removed my jewelry/watch insurance from my homeowner's policy. I now use Jeweler"s Mutual so that if I have a claim it won't affect my homeowner's policy.

True