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Getting Your Home

whether from leaky roofs, broken pipes, runoff or whatever—and the insurance company feels it may happen again or the property may have had mold. The interesting thing is that the homeowner may not have even filed a claim. They may simply have called to see if a situation were covered and if they should file a claim. But, overall, companies feel that properties that have experienced past claims are more likely to experience future claims. The property now becomes, for all practical purposes, uninsurable. 2. The buyer may have had claims on a prior residence that makes the buyer, in the eyes of insurance underwriters, uninsurable. It could be because of similar problems noted above. It could be because a company had to pay a claim because the buyer’s previous home was poorly maintained. Companies feel that buyers who have filed past claims are more likely to file future claims. Whatever the reason, the buyer becomes uninsurable. 3. The buyer may have low credit scores. What do low credit scores have to do with homeowners’ insurance? Insurance companies have started to underwrite based on their assessment of a buyer’s ability to properly maintain their home. In their estimation, people with low credit scores usually are unable to afford routine maintenance, leading the home to fall into disrepair and hence leading to claims-related damage. Insurance companies are claiming a number of reasons for the current crisis. They point to the $40+ billion in losses in the World Trade Center terrorist attack and to 111

Profile for Linda DeVlieg Real Estate

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

Profile for lindadev