As buyers become more fickle and remain in the driver's seat when it comes to a real estate transaction, sellers must be aware of potential pitfalls when they receive and accept an offer to purchase. An issue that can affect a transaction is any previous insurance losses a seller may have incurred with regard to the property being sold.
To prepare for an inquiry about loss history on the home you are selling you should obtain a loss history report from your insurance agent or a Comprehensive Loss Underwriting Exchange report (CLUE). The Comprehensive Loss Underwriting Exchange is a national insurance industry database which details many million property claims. A CLUE report examines all claims reported to an insurance company for a given property over a five-year period. The report is a guide for the buyer to help verify the seller's property disclosure statement, as well as well as help a home inspector ensure reported damage has been properly repaired.
The Arizona Association of Realtors Residential Purchase Contract requires that the seller provide the buyer with a written five-year insurance claims history regarding Premises (or a claims history for the length of time Seller has owned the Premise if less than five years) from Seller's insurance company or an insurance support organization or consumer reporting agency or if unavailable from these sources, from Seller, within five (5) days after Contract acceptance.
If you have owned a property for five or more years and had the same insurance company ask your agent to provide you with a loss history report. If you have changed insurance companies within the last five years you can obtain a CLUE report, on line at www.choicetrust.com, the cost is $19.95 per address. Be sure to order the home sellers disclosure report as it does not divulge any of your personal information.
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