Bradenton – The rate on a homeowners insurance policy is most likely based on the home’s claim history.
Sellers who make too many property insurance claims could harm future buyers, yet most buyers and Realtors are unaware that actions take by a home’s previous owners may be considered when an insurance company sets a premium under their new policy. Many insurers use CLUE – an acronym for Comprehensive Loss Underwriting Exchange – to report and check the claims history of homes.
“Consumers and even Realtors are almost entirely unaware of how the CLUE database affects their insurance rates,” says Axel Weiss, Real Estate Broker with Sea to Sky Realty. In some states, an inquiry about property damage can be added to your CLUE report and used against you, even if you never file a claim.”
Only the owner of a property can request a CLUE report. Homebuyers, need to ask sellers to obtain a copy on their own behalf.
The CLUE report, which maintains data up to seven years, is a valuable tool for homebuyers because it reveals prior claims and potential risks, Weiss says. “It also helps home sellers provide full disclosure about their property’s condition.”
Tip: Homeowners can request a CLUE report free once every 12 months
Sea to Sky Realty
The Florida Real Estate Company with the GERMAN Twist!
Axel and Bea Weiss
Bradenton, Florida 34205
(941) 866 1666