You don’t have to rely solely on a seller’s transparency to learn about all of a home’s insurance claims. Insurance claim records are available from insurance providers who use the Comprehensive Loss Underwriting Exchange (CLUE) database. Insurance carriers can use this database to retrieve information about claims filed within the past seven years.
It’s a good idea to check for home insurance claims before purchasing a home. A CLUE report is an effective way to check for claims. This report is vital because it can:
Overall, this report helps you make a more informed decision before you purchase. You can walk away if the price is too high, invest in more detailed inspections or budget for potential future repairs or insurance costs.
Once you have the claims report, you need an expert who knows what to do with it. We specialize in finding the right coverage for any home.
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The report provides a home insurance claims history, including the date, type of loss and the amount the insurance company paid the policyholder.
A CLUE report might show the following causes of loss:
At the beginning of the sale, you can ask the seller to request a CLUE report, as only the current owner can. If a seller is willing to provide you with a CLUE report, this is a sign they aren’t trying to hide anything from you. You’ll feel more comfortable moving forward with the purchase, and the seller will demonstrate that they’re prepared and trustworthy.
For added confidence and protection, make the CLUE report a contingency of your offer or purchase agreement. If you do so, you may be able to withdraw your offer and get your money back if you aren’t satisfied with the report’s findings.
Knowing the history is half the battle. The other half is securing a rock-solid insurance policy. We’re here to help with that.
Get My Free Homeowners QuoteOnce you receive the report, you should check for the following patterns of property claims history, which could be red flags:
If you’re checking for past insurance claims with a CLUE report, you may wonder how these claims impact your insurance. At David Pope Insurance Services, LLC, we can help you estimate insurance costs for the property with a quote.
