Filing a Small Home Insurance Claim? Here are Some Things to Consider.

When people pay their home insurance bills, they usually get the feeling that they are covered. However, what people don't know is that when filing even a small claim on your home, the insurance company could show the cold shoulder in a time of need.

Frankly, the insurance companies are tracking you in a database (like a credit report). There is a way how to tap into that database and save more money on your insurance payment. The Six News Investigators can tell you how.

There was an incident with a typical home-owner by the name of Frank Sullivan. His house was robbed twice during the past few years. Robbers didn't steal much - just his tools, however, he had to replace them.

This family was desperate and filed insurance claims. However, nobody told them that this could jeopardize their home insurance. The insurance claims totaled about $1,100. After years of payments, their home insurance sent them a letter saying they had cancelled their insurance. Only after this unfortunate event, their agents told them that they shouldn't have filed the insurance claims. After this, the Sullivans began questioning the concept of home insurance in general, and believed that there was no point in having it.

Insurance Commissioner Jim Long said that this is happening more often. "We're seeing 10 or 15 complaints a day where they're not going to renew or cancel,' says Long. Consumer advocate, Bob Hunter, says that insurance companies are dropping ratepayers, even over little claims. He also stated that it isn't the size of the claim that causes you to lose your insurance - it's the number of claims.

Apparently, your insurance company is keeping track of your claims in a database named C.L.U.E. This database tracks claims that happen to you and the house, just like a credit report, with possible errors. Hunter suggests that there should be "C.L.U.E. reports', just like credit reports, and that they should be free and available for consumers to review.