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







                 CLUE, an acronym for “Comprehensive Loss Underwriting Exchange” is another hot button
                 in  the  real  estate industry. CLUE  is  a database of  homeowner’s  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  other
                 property’s 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, but the purchaser as well depending upon the
                 number  of  claims  the  purchaser  has  made  together with the types  of claims  the  purchaser
                 has  made.

                 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  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     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

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