If you’re buying a home, you should ask about its insurance claim history before you sign the dotted line. You could gain valuable information that will help you decide whether the home is a good choice for you.
Buying a Home? Find Out About Its Insurance Claim History First
A house’s history of insurance claims can affect how much you’ll pay for coverage – even if you didn’t live there when the previous owners made a claim. Here’s the deal, though: Asking this question is important because if a house has been through past damage, it’s got a higher risk of other issues in the future. For example, a home that’s been damaged in a flood may have a higher risk of mold in the future – and if you know that the previous owners made a water damage claim, you can make a more informed decision about whether to buy it.
How Do You Find Out About a Home’s Insurance Claim History?
You can ask the seller for a copy of his or her CLUE Report. A CLUE Report – that’s an acronym for comprehensive loss underwriting exchange – can tell you all the insurable incidents that have occurred related to the home within the past 7 years.
Here’s what else you need to know:
- A blank CLUE Report can indicate that the homeowner didn’t make any claims or that the homeowner’s insurer doesn’t participate in CLUE
- You need to ask for CLUE Reports from each owner over the past 7 years
- You may still have to ask the seller questions after reading a CLUE Report – because although it’ll tell you what claims were made and how much the insurer paid out, it won’t explain each
Do You Need a Disaster Remediation Expert in Washtenaw County or Jackson County?
If your home has already been damaged, we can help. Check out our services and call 734-352-9183 for your free disaster remediation quote today. We offer:
- Water damage restoration
- Mold removal and remediation
- Fire and smoke restoration
- Sewer cleanup and disinfecting
- Wind and storm damage repair