Insurers calculate a person’s risk profile partly based on their claims history. This is because insurers have data to show that once a person ever files a claim, the likelihood that they’ll do so again is higher.

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Insurers extend this same philosophy to a home’s claims history. Their simple argument is that recurrent claims of a particular kind could be an indication of a fault in construction. Then it would be wise to assume that a repeat claims on such a matter would be inevitable in the future.

Here’s an example: A home that has filed repeated claims of water damage of a very particular type must have some major fault with its plumbing And since this is so, your insurer will have no option but to protect itself from such a “problem home.” And guess how they do it? They slam you with higher rates.

So before you pay for that new home, ask for a CLUE (Comprehensive Loss Underwriting Exchange) report. You might think you’ve got a good deal only to pay hefty home insurance premiums because the previous owner made too many claims.

But won’t your rate be lowered if you discover whatever it is that led to those claims and fix them at their root? Although this may help, there’s really no guarantee — At least initially because your insurer has very limited time to evaluate your application. And don’t forget that it’s much easier for an insurance company to call up a home’s loss history than to verify that you’ve made lasting changes. But this shouldn’t discourage from discussing this option with your agent.

While taking your time to ensure you find out more about the home you buy, it’s quite smart to also do comparison shopping. Get and evaluate quotes from a good number of Insurance carriers. Will you save $100, $200m $300 or even much more? You can only find out by getting and comparing quotes.

Remember that quotes sites are free to use and you’re NOT under any obligation to buy insurance from any agent because you got a quotes from them — It’s entirely free!

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