Page 7 - Harlan Stork Buyer Guide

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

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