More Home Buyers Asking for Insurance Loss History Reports From Sellers (C.L.U.E. Reports)
An increasing trend in Colorado real estate is home buyers requiring home sellers to provide a C.L.U.E. Home Seller’s Disclosure Report as a contingency to purchase contract. C.L.U.E. Home Seller’s Disclosure Reports provide a five-year insurance loss history for a given address, without divulging personal and private information about a property owner.
FOR BUYERS: If the report for your property indicates the owner/home has sustained an insurance loss within the past five years the availability and/or pricing of buyer’s new homeowners insurance policy can be greatly impacted. You might not be able to get a policy or it may come at much higher cost than you are expecting. In addition, if a claim is shown, you can make sure to verify the repairs have been completed, request work receipts, and even have your home inspector evaluate the repairs for you. If the repairs have not been made that raises some flags and you want to share these areas with your home inspector as well.
FOR SELLERS: You can order this when you list your home (and not wait for the buyer to request it) By ordering the C.L.U.E. Home Seller’s Disclosure Report ahead of time you can be ready should this contingency arise when you receive an offer. In addition, providing this report to potential buyers will make them more comfortable when deciding to make an offer because the loss history is known. This may give your home an advantage over one where the insurance loss history is not known.
The seller’s insurance agent should be able to run this report, or the seller can order one directly online at Lexus Nexus
720-771-9401
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