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The C.L.U.E. Report and it's Importance to Buyers and Sellers of Real Estate


Information Provided by a C.L.U.E. Report:

A C.L.U.E. (Comprehensive Loss Underwriting Exchange) Report provides dates of claims, insurance company(ies) involved, the type of policy, whether loss was related to a named catastrophe (hurricane, etc.), location of the loss (on or off property), the amount paid and cause of the loss.

Time Periods Covered by the CLUE Report:

The report goes back five years into the history of a property. It is standard industry practice to purge losses over five years old.

Who Can Order the Report and on Which Properties:

Only the owner of the property or an insurer can order the report. If you are representing a buyer or seller, the request for the report must come from the property seller/owner. Reports for a primary residence can be ordered immediately on the internet from ChoicePoint® (Buy Direct), the company that compiles them. Reports for vacation or rental properties must be requested by mail.

The Importance of the Report in a Real Estate Transaction:

The C.L.U.E. Report could provide loss information that would cause a buyer to reconsider the purchase of a home. If there had been a loss paid due to water damage and mold, the buyer might pass on the deal, as it could be expensive or very difficult to get insurance down the road.

The Cost of the Report:

A report can be ordered at a cost of $19.50 per address. I'm sure that most real estate professionals would recommend this expense to their buyer or seller clients, considering the importance of the information it provides.

Get a C.L.U.E. When Representing Your Real Estate Clients!:

For your seller clients, if they have this document showing a clean bill of insurance health for their home, it's just one more thing to give the potential buyer the confidence they need to proceed with a purchase.

For you buyer agents out there, the extra protection afforded your buyer for the small cost of the report is invaluable. And your Errors & Omissions Insurance carrier will love you for it too. The C.L.U.E. Report is now a part of LexisNexis.

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