I have written about CLUE reports’ impact on the real estate market before (and here). Today I had a conversation with a fellow Charlottesvile-area Realtor who did not know that a house’s (and thereby the Seller’s) claims history can impact whether a buyer can affordable homeowner’s insurance.
From VAR’s website – bolding mine – Dating back to the 1980s, insurance claims databases provide subscribing insurance companies with claim history information for properties and individuals. One of the most widely used is called the CLUE (Comprehensive Loss Underwriting Exchange) database.
Everybody is harmed by ignorance, most importantly the public. It is our obligation as supposed professionals to educate ourselves; we do a disservice to our profession when we do not.
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The interest of both buyers and the sellers now suggests that the buyers should begin their search for insurance no later than the time of the contract to purchase is signed. This helps to assure a firm commitment for the issuance of a policy well in advance of the settlement of the transaction. Waiting until the last days or even weeks before the closing can limit the opportunities of the buyers and sellers to address the affordability and availability issue and, if needed, to find alternatives for difficult to insure properties. There have been many examples of transactions which have been adversely affected in some manner because of problems associated with insurance availability/affordability.claims to an insurance industry database. This is from a National Association of Realtors’ brochure (PDF).