How to Check a Home's Insurance History
If you are in the market for real estate, an important issue to check on a home is its insurance history. It is essential to have an insurance policy in place before a bank will issue a mortgage. Also, potential sellers should check on their own home insurance history. The contents of a home insurance history can determine whether a potential buyer or a particular property will be accepted or rejected for home insurance coverage.
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Things You'll Need
- Comprehensive Loss Underwriting Exchange (CLUE) report
- A-PLUS report from Insurance Services Office (ISO)
Instructions
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Directions
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Obtain a copy of the Comprehensive Loss Underwriting Exchange (CLUE) and A-PLUS reports for the home from the homeowner for any house you are considering making an offer to buy. If you are working with a Realtor or real estate broker, he or she can make the request on your behalf.
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Contact the appropriate agency to obtain a copy of your own home insurance claim history. Contact Choice Point for your CLUE report and Insurance Services Offices for your A-Plus report. Check each report carefully for any errors and correct any inaccurate statements.
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Contact the owner about any items on the report that raise questions. Mentions of water damage are especially important to follow up on. Clarify whether the items represent full claims or only inquiries. In the case of full claims, determine whether the claim was fully resolved and obtain documentation.
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Tips & Warnings
Buyers should begin the process of checking a home's insurance history as soon as possible and clarify any questions before making a final buying decision. Sellers should obtain a copy of their own CLUE reports before listing their homes on the market. They should check for errors and correct any inaccurate information.
Insurers in many states may cancel a home insurance policy within 60 days for any reason, including problems discovered on a CLUE report. Only a homeowner or a business with a legally permitted purpose can obtain CLUE reports. If a homeowner is hesitant to supply one, it should be considered a red flag.
