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Don’t Have A CLUE About The

CLUE Report?

A CLUE Report consists of two parts; one addresses the insured’s claim history, the other the property’s claim history.
How many claims an insured has made as well as what type of claims can affect their insurability. The type and number
of claims made on the property affect the insurability of the residence. In determining whether or not to issue or termi-
nate new policies, some insurers consider both the claims history of the proposed insured (home purchaser) as well as
the claims history of the property itself; still others consider the claims history of the proposed insured alone. In other
words, there is no standard for making the insurability determination within the industry. Nonetheless, a CLUE Report
may affect not only a property which interests the purchaser. The CLUE Report also affects the number of claims along
with the type of claims the purchaser has made in the past.

Home purchasers have no access to the CLUE database information through their own insurance carrier because they
don’t yet own the property. The insurance agent isn’t able to supply the property information either. A purchaser is
permitted to see only that part of the report that pertains to his or her own individual claims history. The property seller
alone may provide a copy of the report to a prospective purchaser and the seller may obtain a copy of the CLUE Re-
port from www.choicetrust.com for a nominal fee.

As a consequence of the impact that CLUE may have on the insurability of a property, but individual purchasers as
well. Realtors and their clients should consider three things:
• Make disclosure of the CLUE Report one of the contingencies of the contract.
• Submit your insurance application early.
• Should your current carrier determine a property uninsurable, consider a company that makes its determination
solely on the purchaser’s claim history, not that of the property as well.

More home buyers, concerned about possible previous insurance losses experienced at a property they are consider-
ing, are requiring home sellers to provide a CLUE report as a contingency to a purchase offer. A CLUE Home Seller’s
Disclosure Report is an independent source of information about insurance losses at your home address within the past
five years.

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