Many years ago, when the computer data base age came into being, Insurance companies developed a tracking system called CLUE. The Comprehensive Loss Underwriting Exchange database tracks Homeowners Insurance claims, and it can provide valuable information for Buyers, Sellers, and Insurance Companies. For example I knew of a buyer that we gave a quote to for a new homeowners insurance policy, and in doing the quote I noticed there had been a large hail claim for the previous owner which paid for a new roof. In this case the seller had taken the $35,000 for the roof and decided to postpone the replacement. Now even though a Home Inspection would hopefully find this, that is not always the case. Sometimes the insurance Company will pay a claim even though the small dents from hail are barely noticeable and hard to find. It is rare that a hail storm would cause immediate leaks in the roof, unless it broke skylights. Usually it just takes a few years off the life expectancy. Also the roof is hard to do a thorough inspection on, unless weather conditions are good.
Needless to say, in my clients case he and his Real estate Agent went back to the seller and were able to renegotiate the deal based on this new information. So, when buying Real Estate make sure your Insurance Agent does a Clue Report (ALSO USING THE NEW HOME ADDRESS) as this will also show the claim history on the new home they are about to purchase.
You can also order a CLUE on your own for about $20 The Clue system is operated by Georgia based Choicepoint Asset Co. You can visit their website at choicetrust.com or by writing to C.L.U.E. at Consumer disclosure center P.O. Box 105295 Atlanta Ga. 30348-5295.
Please feel free to visit my website at Barringtoninsurance.net for more information about Homeowners Insurance.
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