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Corvallis Real Estate - CLUE Reports

By
Real Estate Agent with Coldwell Banker Valley Brokers OR License 200709202

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:

www.insuranceoregon.org

 

Comments (4)

Diane Parker
Coldwell Banker Sea Coast Realty - Wilmington, NC

In NC, we have a standard Addendum, Insurance Availability and Affordability.  I don't see it used very often though. It's great for those buyers who have had claims or those that have concerns regarding the property they are trying to insure.

May 21, 2009 03:35 PM
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hi Patty,

Good info, we use-em quite often in SoCal. IMHO, it's always a good idea to determine whether or not there are "issues" in advance.

May 21, 2009 04:41 PM
Richard Dolbeare
Inactive - Wailuku, HI
Living the Hawaii Lifestyle

I first learned about a Clue report from the business manager of a wealthy client of mine.  I was grateful for him sharing the information and it's something we should all know about.  I was totally unaware before that.

May 21, 2009 07:15 PM
Patty Brown, Broker, REALTOR®, ABR®
Coldwell Banker Valley Brokers - Corvallis, OR

Thank you for the comments.  I'm learning something new every day!  In our area the CLUE reports are rarely requested but after my 2 experiences I am certainly going to utilize them when any 'flags' are raised...better safe than sorry.

May 22, 2009 11:47 PM