Get a C.L.U.E.!

Many homeowners file trival claims for every little issue that occurs with their home with no thought of the ramifications of their actions on the ability for the next homeowner to secure a policy on the property once the home is sold. Unfortunately, many home sellers and buyers learn the hard way. Stay tuned!

So, what are the facts about a C.L.U.E. Report? Below are a few key facts about the Privacy Rights Clearinghouse. Take note, it should motivate you to learn about C.L.U.E reports:

As a homeowners, after a claim has been filed, it's possible your homeowner's policy may not be renewed. In addition, you may not be able to find another company to insure you. (And, you may not be told about this by your insurance company!)

Here are some key facts about the CLUE Report:

• Claims filed by homeowners remain on a CLUE report for five years.
• Inaccurate and erronious information can be included in the report including information about someone else or another property.
• A report may use information other than claims data to rate you as a risk.
• Your phone calls to inquire abut a possible claim may be reported and lower your score.
• Even when repairs are made and the property is restored to the original condition, the CLUE report can include information about the claim.
• The report can affect the premium you pay as well as whether you are insured at all.
• Your history as a long-time customer with your prior company is NOT a factor of the CLUE report.
• Annual privacy notices from financial institutions and insurance companies do not have to explain that the company shares your information with the CLUE database.
• The insurer assigns you a score based largely upon your credit history

You are entitled to get a copy of your CLUE report and your insurance score and dispute errors in the CLUE report.

The ability for buyers to obtain homeowners insurance is so important that it should be a priority once an offer has been accepted. Prior water damage or moisture related issues as simple as broken plumbing that has since been repaired may make obtaining insurance on that property either very expensive or impossible.

So, how does your client go about getting a CLUE report? ChoiceTrust will provide a C.L.U.E. Personal Property Report with a 5-year history of losses associated with an individual and he/her personal property as well as a Home Seller's Disclosure Report which provides loss information about a given address which can be given to potential buyers. These reports can be ordered on their website.

Buyer-Protect Yourself

Buyers should always thoroughly research the home they are purchasing. Insure the purchase contract clearly stipulates your wishes and is written properly. As yor buyer's agent, I will make sure your attorney adds a verbiage in the contract giving you the right to receive and review the CLUE report prior closing the sale.

It is important your real estate agent partner and lawyer find out what has previously happened to the property.

When inspecting the home, make sure the home inspector thoroughly checks for the following areas for problems:

• Water damage
• Mold
• Radon
• Asbestos
• Flooding basements

It is recommended you include an addendum to your purchase offer requiring the seller to disclose all insurance claims made on the property in the past five years. In addition, it is recommened the contract contain some verbiage to require that the homeowner provide a CLUE report well ahead of closing.

As your Wilmington professional buyer’s agent, it is my job to help make you feel at ease through every step of the home buying transaction. For more information on the C.L.U.E Report, contact me, Barb Glienke, your Wilmington home buying expert.