Repipe – Your Home’s Claim History – Get A C.L.U.E.

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Repipe – Your Home’s Claim History – Get A C.L.U.E.

Why did I write “Repipe – Your Home’s Claim History – Get A C.L.U.E.”  Very simple.  From time-to-time, we have customers in Mission Viejo, Lake Forest, Irvine, Portola Hills, Laguna Niguel, Laguna Hills, Foothill Ranch, San Clemente and other South Orange County California communities who experience damage to their homes (usually water damage) and they ask me “should I make a claim to my insurance company?”  Here’s what I can tell you.  With each claim, your insurance company enters it into the Comprehensive Loss Underwriting Exchange (C.L.U.E.®).  What’s this?  It’s a National database that all insurance companies use in determining your insurance premium.

Insurers share information on homeowner’s claims for up to seven years through the C.L.U.E.®.  When you apply for insurance, the company looks at the claim’s history for your home, even for the time before you lived there.  If the house has a history of water-damage claims, for example, it may be more likely to have future problems—and insurers will boost your rate. 

Repipe - Your Home's Claim History – Get A C.L.U.E.

How can I receive a C.L.U.E. Report on my home?

A free C.L.U.E.® report can be obtained once a year from database giant LexisNexis.  You can request a copy by calling (866) 312-8076.  You can also request and receive reports from LexisNexis Risk Solutions electronically at After your request is submitted, you will receive a letter via U.S. Mail with details explaining how to access your report electronically.  Only the owner of a property may access its C.L.U.E.® .

C.L.U.E.® reports illustrate all claims and include the type of claim (water, fire, theft, etc.), amount paid on the claim, status of the claim, dates of the claim, and the insurance company who paid the claim along with the policy number(s).  It also has your name, address, date of birth, age, social security number, phone number, and gender.  Interestingly, your home is listed as a Risk Address.  It also lists any former addresses for you.  They know it all!

Repipe - Your Home's Claim History – Get A C.L.U.E.

How do Insurance Companies use C.L.U.E. Reports?

Now, think about this.  If your home insurance is $1,500 per year on average over 20 years, you’ve paid total premiums of about $30,000.  Of that, only about 20% or $6,000 is profit to your insurance company – or $300 per year.

You have a slab leak or other water pipe leak causing $10,000 – $15,000 in damage.  This amount must be paid now.  That’s way more than the $300 yearly profit your insurance company is getting from you!  In the eyes of the insurance industry, you’re a huge disaster and a monumental risk!!!  They also know that you will have future pipe leaks from your old and worn out copper water pipes.

The insurance company must recoup this $10,000 – $15,000 loss.  They also make sure all this information goes into the C.L.U.E.®, so they’re subsidiary insurance companies and other insurance companies can reassess your premium and charge you accordingly.  You’re not going to be able to change carriers to hide the loss and get your future premiums lowered . . . you’re going to pay through the teeth for years!

Since you are now considered a big disaster, you’re cancelled, and your insurance premium goes through the roof!  If you’re lucky, you’re not cancelled but your premiums still go through the roof.

Repipe - Your Home's Claim History – Get A C.L.U.E.

Insurance Companies use C.L.U.E. Reports to increase premiums

So, while you’re busy celebrating your new $10,000 – $15,000 replacement wood floor, carpet, painted interior, and baseboards, you can gasp at your new $4,500 per year insurance bill!  Over 7 years, you’ll pay at least $37,800 in premiums with yearly increases for that $10,000 -$15,000 worth of work!!!  Why would anyone do this?  You’re upside down by at least $22,800 – $27,800.  Just pay for the work yourself and forget the insurance company.  You’ll likely be $20,000 to $30,000 ahead – at a minimum!!!

According to my insurance agent, the insurance industry looks at fire insurance as the only “real” insurance for your home.  Everything else is to make buckets of money – have you ever seen the buildings insurance companies occupy?  Nice, aren’t they!  You pay for all that splendor.  How do you think the insurance agents sponsor all those Little League teams, “free” seminars, “free” dinners, and other “free” and sponsored activities?  They’re not using their own money – they’re using yours!

Do yourself and your family a huge favor.  Before you have that water leak, call a reputable Contractor like DAD’s Construction and get your house re-piped and laugh all the way to the bank!  If you don’t need that extra $20,000 – $30,000, send it to me.  I have 4 kids and they would love the extra money!

So, as you consider fixing the water pipes in your home after the flood, don’t forget to think about “Repipe – Your Home’s Claim History – Get A C.L.U.E.”  Giving serious consideration to this article could save you tens of thousands of dollars on your insurance over the years (or more!).

Always Hire a Reliable and Dependable Contractor to Remodel your Home

Design Build Bathroom Remodel | Best Local Contractor DAD's ConstructionAlways work with a trustworthy contractor like DAD’s Construction.  We are experts in bathroom, kitchen, and interior remodeling.  We remodel and manage projects in an efficient manner.  DAD’s Construction will do everything to minimize the possibility of change orders.  Our team will make sure we have all the necessary information to prepare a proposal that meets your requirements.  Rest assured that we will provide you with a detailed, by line-item contract.  We will make sure that the contents of this agreement are properly and clearly communicated to you.  If you have questions or need updates regarding your project, we will always answer your inquiries.

How Can I Receive More Information on Remodeling my Home?

If you would like more information on enjoying the best bathroom, kitchen, and interior remodeling experience in Orange County, call Dan at (949) 380-0177 or at for a free in home consultation.  DAD’s serves all of South Orange County California.  This includes Lake Forest, Mission Viejo, Foothill Ranch, Portola Hills, Ladera Ranch, Irvine, San Clemente, Dana Point, San Juan Capistrano, Rancho Santa Margarita, Coto de Caza, Dove Canyon, Laguna Niguel, Laguna Hills, Newport Beach, and Aliso Viejo.

Repipe - Your Home's Claim History – Get A C.L.U.E.

“Taking Care of Your Home . . . The Way We Would Our Own”

Daniel A. Derkum is the owner of DAD’s Construction, a leading South Orange County, California design-and-build remodeling and renovation contractor,  © DAD’s Home Services & Construction, Inc.  All Rights Reserved.