A Comprehensive Loss Underwriting Exchange history or CLUE report can help buyers avoid surprises after the deal closes by encouraging buyers to review a home's CLUE report.
Based on claims information submitted by insurers to the CLUE database, the report includes dates, types of claims, and the amount paid for each claim. If the report shows no losses, a home buyer can feel confident that no one has filed a fire, flood, windstorm or other claim against an insurer. However, if a claim has been filed, the buyer will know to take an extra-hard look at the area that was damaged. Also if the report shows that someone has filed a water-based insurance claim for mold, that might be reason enough to move on. A mold claim often makes it difficult for subsequent owners to obtain homeowners insurance. And if they can obtain insurance, it might be extremely expensive.
Only the home owner can obtain a CLUE report, so the buyer will have to ask the seller to purchase one. The report costs $19.50 and can be obtained from the ChoicePoint Web site.
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