Avoid Potential Problems- Order a CLUE Report

Real Estate Agent with Prudential Homesale Services Group

The standard "Seller's Property Disclosure" form does not yet require the inclusion of Comprehensive Loss Underwriting Exchange  (CLUE) reports.  Nevertheless, REALTORS®  should alert buyers  to the possibility of having difficulty insuring certain properties deemed  at greater risk because of a history of previous claims.

In some rare cases, a homeowner's policy may be rescinded because of claims made by previous home owners. One way to prevent unwanted surprises, according to the Pennsylvania Association of REALTORS®, is to ask the seller to provide a copy of the CLUE report ahead of time. A CLUE report on property claims is obtained from a national data base.  As with credit reports, only the current home owner can request a CLUE report. 

When representing buyers, REALTORS®, should encourage their clients to apply for homeowners insurance immediately after the execution of the contract.  The insurance contingency creates a 15-day window for buyers to apply for and obtain home insurance on the property they are planning to purchase. Within this timeframe, if a property is not insurable or carries a higher than expected premium due to information gleaned from the CLUE report, buyers may terminate the contract and receive a refund of all earnest money. 

The insurance premium on a home is also influenced by a buyer's credit scores, i.e..  buyers with lower credit scores will payer higher insurance premiums.  To that end, buyers shopping around for home owner's insurance may benefit from obtaining policy quotes from several insurance companies by consulting wth an insurance broker.

This is just one more way that REALTORS® create value for their clients!

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Michael Sahlman
www.HomesForVIPs.com - Keller Williams Realty - Miami Beach, FL
e-PRO - Miami Beach Florida Luxury Homes

Or this blog could be titled...Hey Get a Clue Why Don't Ya! Sorry couldn't resist. Thanks for the post and info...it's importnat to remember the details.

Jun 19, 2008 02:55 PM #1
Jean Powers
Kane & Associates call 510.908.9002 - Alameda, CA
CRS,e-PRO,HAFA,SFR Broker, Northern California

Roseann, thank you for your great post, it is a great reminder

Jun 19, 2008 02:56 PM #2
Carrie Perez
Elk Rapids, MI
Thank you for the info. I did not know this!
Jun 19, 2008 03:01 PM #3
Roseann Annis
Prudential Homesale Services Group - Camp Hill, PA

Thanks, Michael and Jean.  Far too many buyers wait until the last minute to apply for home insurance, despite our urging to do so.  Even if there is no problem insuring the home, buyers should shop around to get the best coverage at the best price. 

I look forward to reading your blogs!  Roseann


Jun 19, 2008 03:02 PM #4
JoEllen Stranger-Thorsen
Eustis, FL
Lake County, FL

Thanks for giving us a CLUE (sorry, couldn't resist either.) Insurance in Florida can be tough. I tell my buyers to find it as soon as we have contract in order to make sure they get the coverage they need at the best price.

Jun 19, 2008 03:52 PM #5
Pam Winterbauer
Pam Winterbauer Real Estate - San Ramon, CA
"Providing Blue Ribbon Service"

This a great reminder for all of us......thanks for sharing the post.

Jun 19, 2008 04:21 PM #6
Roseann Annis
Prudential Homesale Services Group - Camp Hill, PA

JoEllen and Pam, I appreciate your comments.  Now we're all CLUED in! :)

Jun 19, 2008 05:13 PM #7
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