Insurance. There seems to be some sort of insurance coverage for every thing we own: Home, Auto, Medical, Life, Liability, Title, Flood, Renters, Mortgage, Earthquake, not to mention appliance and technology warranties and even insurance coverage for Fido's visits to the vet!

No matter what kind of insurance you carry, most of us to seem to have a love-hate relationship with all the insurance in our lives. Whether is it optional insurance or mandatory coverage, we may dislike paying the premiums, but we sure do enjoy the coverage protection when we need it. 

Once you take out a mortgage on a home, your lender will require you to hold Home Owners insurance. But did you know there is a way to benefit from a home seller's insurance coverage before you buy their home once you are under contract?  I am talking about a C.L.U.E. Report (Comprehensive Loss Underwriting Exchange).  This is a history report citing the following facts of insurance claim(s) filed by home owner(s) in the past five (5) years on a particular property:

  • dates of any claims on the property
  • any insurance company(ies) involved
  • policy type used
  • if the loss was related to a catastrophe
  • location of the loss; and
  • amount paid out and cause of the loss.  

Think of a C.L.U.E. report as similar to Car Fax for buying used cars, but for your home.  This type of information will allow you, as the home buyer, to better understand any prior issues reported on the home. Perhaps you learn about mold or flooding issues in the home's past. Such background information may help you decide if you want to purchase the home after all.

According to money management website, TheBalance.com, "A C.L.U.E. report goes back five years into the history of a property. Only the owner of the property or an insurer can order the report. Reports for a primary residence can be ordered immediately on the internet from ChoicePoint®  the company that compiles them. The cost of a report is about $19.95." 

"For home sellers, if you have this document showing a clean bill of insurance health for your home, it's just one more thing to give the potential buyer the confidence they need to proceed with a purchase. For buyers, the extra protection afforded is worth the small cost of the report". So seek to work with the seller to get the report in your hands early in the transaction and certainly before important inspection deadlines. Doing so could reveal deal breaker information! 

If you have been following Louisville Realty Associates on social media you will know that we provide regular updates on what we think home owners and home buyers may be like to know. We also provide snapshots of market data for East Boulder County. While it is easy to get lost in the multitude of statistics available for everyone to look at online, we always keep our data sweet and simple. Check out East Boulder Town market statistics here. At Louisville Realty Associates, our wonderful agents have the experience, energy and depth of knowledge to help you list your home for the best price. You can reach us anytime at cory@louisvillerealtyassociates.com.

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