Page 7 - Veronica Flores Buyer Guide
P. 7

Definition   of   C.L.U.E.
              Definition  of  C.L.U.E.







        CLUE,  an  acronym  for  “Comprehensive  Loss  Underwriting  Exchange”  is  another  hot  button  in  the  real
        estate  industry.  CLUE  is  a  database  of  homeowners  insurance  policy  claims  information.  In  existence  for
        some  years  now,  insurance  companies  use  the  database  to  determine  both  the  issuance  as  well  as  the
        continuance  of  homeowner’s  insurance  policies.



         A  CLUE  Report  consists  of  two  parts; the  insured’s  claim    history and  the  property  claim  history.
         How  many  claims  an  insured  has  made  as  well  as  what  type  of  claims can affect their insurability.
         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. However,
         the purchasers  previous claims may also be considered in the insuring of a property.


         Home  purchasers  have  no  access  to  the  CLUE  database  information  through  their  own  insurance  carrier
         because  they  don’t  yet  own  the  property,  nor  for  that  matter  is  their  insurance  agent  able  to  supply
         them  any  information  on  the  property.  A  seller  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  Report
         from www.choicetrust.com  for  a  nominal  fee.


         As a consequence of the impact that CLUE may have not only on the insurability of a property, but
         individual purchasers as  well, Realtors and their clients should consider three things:









            1. Make disclosure of the CLUE Report one of the contingencies of the contract

            2. Submit your insurance application early


            3. 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.










                                            Pioneer Title Agency
                                            Pioneer Title Agency
                                                 COMMITMENT TO SERVICE
                                                COMMITMENT TO SERVICE




                                                                                                                   Page 5
   2   3   4   5   6   7   8   9   10   11   12