CLUE reports are based on two major property claim databases: The Comprehensive Loss Underwriting Exchange and the A-Plus, or Automated Property Loss Underwriting System. Basically, it is a loss history report utilized by insurance companies to verify the insurability risk of a particular property.
Oregon state insurance laws allow insurers a 60 days binder review period after a policy is issued to thoroughly review the underwriting information, including the CLUE report, and can cancel a policy after the fact, based on information in the report. Most homeowners wait to purchase their homeowner's insurance until the last minute, thus not allowing underwriting to do a thorough review by the time closing takes place. There is a risk that the buyer, all happily moved into his/her new home, gets a surprise in the mail - his insurance company has canceled his policy and their new home isn't insurable. This was my concern as the leak referenced in my previous posting happened one week prior to closing and I needed to confirm the seller wasn't going to make an insurance claim that might show up with in the 60 review window. Now granted, early research by the NAR Insurance Task Force indicates that even though transactions are sometimes being delayed and associated costs are increased due to the inability to secure insurance, few deals are actually falling through.
To learn more about CLUE reports please visit:
www.oregonrealtors.org/.docs/pg/400/rid/10127/f/crrp.pdf
Homeowners can obtain a copy of the report for their property online at www.choicetrust.com
Additional Oregon homeowner's insurance information can be found at:
Comments (4)Subscribe to CommentsComment