What Is The CLUE Insurance Report? (& Why It’s Important)

Today we are going to discuss what is the CLUE Insurance report and why it’s important for home sellers and buyers.

We’ve all heard horrible stories about deals falling through because home buyers found out previous claims made about a properties condition with insurance companies that are revealed throughout the transaction process.

Providing insight into a property’s history not only helps the sellers, but also provides buyers with information about the property.

Also, when purchasing a new home, buyers often shop around for the best rate for a homeowners insurance policy.

Part of that rate is determined based on the home’s claim history. Sellers who make too many property insurance claims could harm the rate for future buyers. The actions taken by a home’s previous owners may be considered when an insurance company sets a premium under their new policy.

What Is The CLUE Insurance Report?

Many insurers use a C.L.U.E. Report – an acronym for Comprehensive Loss Underwriting Exchange – to report and check the claims history of homes.

Underwriters use the information in a CLUE report to rate insurance policies.

The CLUE report maintains data up to seven years for a given address, without divulging personal and private information about a property owner.

The report lists the dates of any claims, the loss types and amounts paid for losses, and it will tell if a claim was denied.

Weather-related losses, fires, theft, vandalism and water damage are some of the types of claims listed but the report doesn’t indicate what part of the property or home was affected as that information would need to be disclosed by the sellers.

Only the owner of a property can request a CLUE report. Home buyers, therefore, need to ask sellers to obtain a copy on their own behalf.

Why Is Getting A CLUE Insurance Report Important?

By ordering the C.L.U.E. Home Seller’s Disclosure Report at the time of listing, the seller will be ready for the first potential buyer who is inquiring about this information.

Providing information to a potential buyer that makes the home you are selling more attractive is to your advantage.

More home buyers are requiring home sellers to provide a C.L.U.E. Home Seller’s Disclosure Report as a contingency to a purchase offer.

Also, a buyer can feel comfortable that the insurance loss history of the property should not impact the availability or pricing of homeowners insurance.

This may give your home an advantage over one where the insurance loss history is not known.

Homeowners can get a CLUE Insurance Report free once every 12 months and can also call (866) 312-8076 to obtain one. It can only be requested by the owner of the home.

While a home inspection and the seller’s own report on the condition of a home are important, a C.L.U.E. report is an additional source for you to rely on to make sure you’re purchasing a home free of chronic problems. It certainly is not intended to replace a home inspection, but rather to provide even more information about the property.

Getting A CLUE Insurance Report (In conclusion)

In conclusion, the CLUE Insurance Report, or the Comprehensive Loss Underwriting Exchange report, plays a crucial role in the real estate and insurance industries. This report serves as a valuable tool for both sellers and buyers of homes. It offers a comprehensive history of insurance claims for a specific property, helping potential buyers make informed decisions about their future investment.

For sellers, obtaining a CLUE report at the time of listing is a smart move. It not only demonstrates transparency but also enhances the attractiveness of the property to potential buyers. In an era where transparency is highly valued, providing a CLUE report can set your home apart from others on the market.

Buyers, on the other hand, should actively request a CLUE report when considering a property. It allows them to gain insights into the property’s insurance loss history, helping them assess potential risks and understand how it might affect their homeowners’ insurance coverage and premiums. This knowledge can provide peace of mind and even give their offer an edge in competitive real estate markets.

It’s important to note that a CLUE report should not replace a thorough home inspection, as it serves a different purpose. Instead, it complements the inspection by offering additional information about the property’s history. Homeowners can obtain a free CLUE Insurance Report once every 12 months, ensuring that they have access to valuable data when making one of the most significant financial decisions of their lives.

In the end, the CLUE Insurance Report empowers both sellers and buyers to make well-informed choices, fostering transparency and confidence in the real estate market. So, whether you’re selling your home or looking for the perfect property, don’t overlook the benefits of the CLUE report in ensuring a smooth and informed transaction.