Another Insurance Question-Umbrella Policy

[Bonny]

I was recently contacted by my main insurance company regarding a "survey" from the Umbrella Policy. This is State Farm and they cover 4 of the 5 properties, the cars and the umbrella. They wanted to know the claims history associated with the condo that is covered by USAA. The timing of this question can't be co-incidental therefore my first question to you insurance folks is there a central data base where in all insurance companies report property damage claims? Is this part of the CLUE system?

The second question is whether the two claims for the condo will affect our umbrella policy coverage? I asked my agent's rep but she states that the underwriter won't say. I take that to mean "yes" but what is a likely scenario? The first claim pay-out was only $1800. This claim is currently at $6400. The agency should pay something for the folks downstairs, probably in the 2k-3k range for a total of about $10k. Other than repair for a hit and run to my husband's car about six months ago we haven't filed anything but some windshield claims in over 20 years.

Thoughts? Advice?

[justme]

Yes, there is a central place for property claims. It's the same place as the CLUE report but it's a separate report from the car one.

ETA: Apparently they are both called CLUE - just one is Property Claims and the other is Auto Claims. personalreports.lexisnexis.com/signin.jsp you get one free a year. I called my insurance about a question on the auto claim and they gave me another for free.

[Bonny]

justme,

That was really helpful and enlightening. It appears that USAA paid my downstairs neighbor $2500 for their bogus claim they filed last year.

I recently received a letter from USAA stating that they "settled" with them. I called trying to find out why but my call hasn't been returned. The date of the letter is the same as the new claim date. This can't be a coincidence.

[moneymaven]

Yes, same as CLUE for property claims. Most umbrella policies contemplate the underlying liability premium as part of the pricing for the umbrella. Therefore, a claim that causes your liability policy to increase may increase your umbrella premium.

Good news is that umbrella premiums are very low considering the coverage it gives, so it shouldn't be a significant increase. Hope that helps.