When buying a new home have you been shocked at the cost of home insurance and wondered why the premium is so costly?  If you’ve never owned a home before, you only assume that it has nothing to do with your past, but here comes the surprise, it can have everything to do with the claim experience of the prior seller!

New homeowners need to get a C.L.U.E., and no, we’re not using 90’s slang here.  C.L.U.E. stands for Comprehensive Loss Underwriting Exchange.  C.L.U.E. is a database used by insurance companies to evaluate risks and determine rates.

Information provided by a C.L.U.E. report can include:

Dates of claims, insurance company(ies) involved, the type of policy, whether a loss was related to a named catastrophe (hurricane, etc.), the location of the loss (on or off property), the amount paid and cause of the loss.

Time periods covered by the C.L.U.E. report:

The C.L.U.E. Report goes back five years into the history of a property.

The C.L.U.E. Report is important during a real estate transaction because it could provide information that would cause a buyer to reconsider the purchase of a home.

If there had been a loss paid due to issues like mold, asbestos, and others, the buyer might pass on the deal, or it could be difficult for the homeowner to obtain insurance in the future.

Who can request the report?:

Only insurance companies, homeowners, and lenders are allowed access to these reports. You can, however, as part of the negotiations for the purchase of your home ask the sellers to obtain their free C.L.U.E. report from the LexisNexis website or by calling 1-866-312-8076.

As a homeowner, it is a good idea to request a copy of the report to verify there are no errors on the report, similarly to the way you would check your credit report.

When making a purchase of this size, having as much information as possible to assist in making the wisest decision is best.  It certainly is not intended to replace a home inspection; however, having multiple ways to determine the condition of the property you’re interested in buying is always in your best interest.

The Certo Team
55 N. Arizona Place Suite #103
Chandler, AZ 85225
602-429-6789