You found your client’s dream home and were able to negotiate a good deal with the seller. Now all you have to do is tie up some lose ends and coast to the closing. You contact your insurance agent to get the required coverage, and they hit you with a high quote or you are told that they can’t insure the property at all.
While there could be several reasons for this kind of feedback, one of the main reasons is that the insurance company may have found something in the C.L.U.E. report about a previous insurance claim for the home from as far back as 5 years that they felt was too high a risk to insure at a low cost or insure at all.
C.L.U.E. stands for Comprehensive Loss Underwriting Exchange, which is a database featuring loss information submitted by 9 out of every 10 insurance companies. A C.L.U.E. report provides a history of about 30 different kinds of losses from wind damage to dog bites that have been filed against insurance policies covering a given property. The report provides information including the dates and types of losses and the amounts paid for each claim.
The C.L.U.E. report is just one of many resources that insurance companies use when they are underwriting or rating an insurance policy to price it or to even insure the property.
So how does the buyer or agent get a copy of this report to see what is negatively affecting the insurance on property? Because of the federal Fair Credit Reporting Act, your insurance agent cannot provide this report to the buyer. The buyer must get a copy from the seller. The seller can order the report at www.choicetrust.com for a small fee and have it in short order.
For a great resource on insurance issues and specifics on ordering the C.L.U.E. report, check out TAR Form 2508 on Zip Forms or at the TAR website.
Two other great resources on the internet about insurance are:
Home Inventory Software
Free software available the makes creating a home inventory fun and easy. Once you have completed your inventory, it is easy to keep your information up to date.
Glossary of Insurance Terms
A great list of insurance terms can be found at http://www.iii.org/media/glossary/
For more information about insurance for you home, investments, vehicles, or business, contact Judge Fite Insurance Agency at insurance@judgefite.com or 214-446-2572.
