C.L.U.E. Reports Provide Insights for Houston Home Buyers
Houston home buyers are accustomed to relying on seller’s disclosures and home inspections to determine the condition of a property. Yet there is an additional way to search for potential condition issues or prior damage – the C.L.U.E. report!
C.L.U.E. stands for the Comprehensive Loss Underwriting Exchange. It’s an insurance industry database containing the history of claims against a property. C.L.U.E. reports stay with a property for the entire length of its existence, even throughout changes of ownership.
Insurance companies use C.L.U.E. data as part of their risk analysis. For example, prior to issuing homeowner’s coverage, the insurance company looks at the reported loss history of the home, as well as the credit history and insurance claim record of the person applying for coverage. This helps the insurance company decide what risk factors and premium costs would be involved in the new policy.
C.L.U.E. reports could be useful to Houston home buyers who are looking at homes in risk-prone areas. A C.L.U.E. report could also tell you if the home had an insurance claim filed in recent years for any reason, including liability claims. There’s just one problem: a home’s entire claim history is not available to the public.
However, there is a form of C.L.U.E. report that a home buyer can request from the seller. It’s called the C.L.U.E.® Home Seller’s Disclosure Report. As the name implies, it can only be requested by the current homeowner, or by his or her authorized insurance agent. Also, this type of report will only go back 5 years.
If there is any loss history during that period, the report will list the date of loss, loss type, claim status, amount paid, policy type and insurance company name. Please keep in mind that a claim-free report doesn’t mean the home is risk-free.
However, if the C.L.U.E. report shows any claims in the past 5 years, it’s very likely you will pay higher insurance premiums for that home because of its claim history.
Since your homeowner’s insurance premiums are affected by the home’s claim history, consider requesting a C.L.U.E.® Home Seller’s Disclosure Report as part of the inspection contingencies in your offer.
Ready to find your new Houston home? Obtaining the expert advice of the KW Energy Corridor Team is the first step in a successful home purchase! Contact us today for your personal real estate consultation!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079