Livermore Home Buyers and C.L.U.E. Reports

California home expensesOne of the expenses of home ownership that can surprise California home buyers is the cost of homeowner’s insurance. You might think that homeowner’s insurance policies in a given area would be similar in cost, but premiums from one home to another can be vastly different.

One reason is that homes with a history of prior insurance claims will have higher premiums than those with no claims. But as a Livermore home buyer, how would you know if the home you’re purchasing has an insurance claim history?

Enter the C.L.U.E. report. C.L.U.E. stands for the Comprehensive Loss Underwriting Exchange, which is a national database used by the insurance industry. It provides a record of insurance claims made against a home. Even though a house changes ownership, the C.L.U.E. report assigns a risk factor to the home itself, based on location, type of structure, prior claim history, and so on.

When you apply for insurance, the C.L.U.E. report on the home is combined with the risk that you present as an individual – your credit history and public records are all part of the picture. You can improve your own record, but you can’t erase the rap sheet that a home may have with the insurance industry.

This is important to understand, because a home with a claim history could impact your premium costs, even if the claims have been settled and all repairs made.

Fortunately, there is the C.L.U.E.® Home Seller’s Disclosure Report. This report looks back 5 years. If there have been insurance claims made during that period, the report will list the date of loss, loss type, claim status, amount paid, policy type and insurance company name.

A clean C.L.U.E. report gives you some assurance that your premiums won’t be tied to claims that pre-dated your ownership. On the other hand, if the C.L.U.E. report shows recent claims, it could indicate that the home may have a high-risk location or bear other concerns.

One catch: only the property owners, or their insurance agent, can request the C.L.U.E. report. But you can ask for the C.L.U.E.® Home Seller’s Disclosure Report as part of your purchase contingencies! This report, used in tandem with a home inspection, could help protect your wallet!

As your Livermore real estate professional, I’m here to help you with your home buying questions! Please feel welcome to contact me for the newest home listings in Livermore, Pleasanton or Dublin! Let my experience in California real estate be your advantage!

John Kurtzer
Your Livermore Real Estate Expert
RE/MAX Accord

Livermore Real Estate
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