Obtaining home owner’s insurance is a must for any home owner as a large amount of damage or a total loss of an un-insured home or condo can financially ruin a home owner. Additionally, having a home owner’s insurance is a requirement for financing the purchase.
Insurance companies have to assess the risk they are taking by insuring a home or condo buyer and they do this by taking a look at the buyer’s claim history and the past claims on the home that he/she is buying. Insurance companies access CLUE (Comprehensive Loss Underwriting Exchange) and A-PLUS (Automated Property Loss Underwriting System) in order to investigate a buyer or property’s past claim history. CLUE is more popular.
The database contains home buyer’s name, date of birth, social security number, policy number and other claim information such as the amount of claim, date of claim and a description of the property covered. Obviously the more claims you have made or claims on the home or condo that you want to buy, the higher the risk and insurance premium.
Home owners have to be very careful when contacting their home insurance company. An inquiry about a problem at home that a home owner doesn’t end up submitting as a claim to the insurance could be recorded in the CLUE data base and used against the owner.
The CLUE report stays in the database for five years and can only be obtained by the insurance companies or the owner. This is the reason that I always ask for them as a contingency for due diligence in my offers, and as I explained in my last article, caught the cheating Las Vegas home seller. CLUE report can be also obtaind for commercial real estate.
Under the federal Fair Credit Reporting Act you can request a copy of your CLUE report from ChoicePoint Consumer Disclosure, their toll free number is 1-866-527-2600. You can find more info about CLUE report on his Wisconsin Government page.
Relevant web-site pages Las Vegas Economic News, Las Vegas, Nevada Residential Real Estate News, Las Vegas, Nevada Commercial Real Estate News.
Las Vegas Realtor, Masoud
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