Obtain an Insurance CLUE Report
Have you heard the term, Get a Clue? If you are in the market for a home, it is a good idea. In this case a CLUE is an acronym for Comprehensive Loss Underwriting Exchange. Insurers use a CLUE report as one piece to evaluate the risk of a property.
As a prospective buyer of a home, you can request that the seller provide this report as part of your inspection process. A CLUE report will reveal prior claims filed during the previous five years and help you understand potential risks. In addition, knowledge of previous loss can help you evaluate the extent and quality of any repairs or upgrades to the home.
Sellers with a history of multiple property claims can adversely effect the new buyer’s home owner insurance premiums. Insurance underwriters evaluate a property using multiple criteria. Previous claims filed against a property is among the criteria. To an underwriter, the property is a higher risk if it experiences multiple claims.
When a potential buyer makes an offer on a property, there is the right to conduct any inspection the buyer deems necessary. A CLUE report can be considered an essential part of the inspection process. It is the buyers right to get a clue. However, only an owner of a property can order the report. The buyer must request that the seller contact their insurer to obtain the report.
The CLUE report will include information on any listed loss such as the date of the loss, type, amount paid by the insurer, the status of the claim (whether closed or still pending), the name of the insurance company and the type of policy. The report will not include personal information about the sellers, so that will not be a concern.
When should I get a clue
As a buyer of real estate, you have the right to know the condition of the home. A CLUE report is one important element you can use to evaluate a property. So ask your agent to help you get a clue when you make an offer for a property.
Click the link for additional information about a Comprehensive Loss Underwriting Exchange report.