| In most state's, you purchase title insurance to | | | | Also, they may not know the history of the homes |
| ensure you are not also buying the responsibility for | | | | for sale before they purchased it. Unfortunately, only |
| earlier liens against the property. In a finite few | | | | a homeowner may order a report from CLUE, called |
| states, you pay to have an abstract search to do | | | | the Home Seller's Disclosure Report. An insurer will |
| the same. The one thing most buyers of homes for | | | | not order information from CLUE until you sign an |
| sale never think of or do is to check the insurance | | | | insurance contract and it goes into underwriting, |
| claims history of potential homes for sale. This could | | | | which you cannot do until you have signed a |
| be a crucial mistake. | | | | purchase contract for the homes for sale. You can, |
| Insurance companies share information with each | | | | however, have your realtor put a contingency clause |
| other. They use the Comprehensive Loss | | | | in any homes for sale offer you make that stipulates |
| Underwriting Exchange (CLUE), which is a huge | | | | the sale may be cancelled if a negative CLUE report |
| database of information. CLUE holds the dates, type | | | | is received. |
| of loss, and amount paid on claims to previous | | | | If you are a seller of a homes for sale, getting a |
| owners of your potential homes for sale for the past | | | | CLUE report before putting the property on the |
| five years. Information contained in CLUE could very | | | | market is a good idea. As in any report, errors can |
| well mean higher homeowners insurance premiums or | | | | be made (just think about all of the errors people |
| no coverage at all for particular homes for sale. | | | | find in their credit reports). Ordering a report early |
| For example, previous homes for sale water damage | | | | means you can catch any errors and get them |
| claims are red lights for insurers, because such | | | | corrected. A CLUE report can be ordered from |
| problems eventually may lead to expensive claims of | | | | ChoiceTrust.com, which also tells you how to correct |
| toxic mold. In California, alone, there have been | | | | report errors. Also, locate all of the receipts for |
| substantial toxic mold claims over the past ten years. | | | | repairs from all insurance claims you made, proving to |
| Some fairly new homes had to be completely | | | | the buyer's insurer that the problems no longer exist. |
| demolished very costly to those insurers. Historically, | | | | For previous claims such as water damage, you may |
| insurance companies have found that toxic mold | | | | even pay for a pre-inspection to ensure the problem |
| damage is generally caused by previous water | | | | was adequately repaired and no future claim will |
| damage that was not adequately repaired. Therefore, | | | | result. |
| when insurers see a previous water damage claim, | | | | Finally, buyers should begin shopping for homeowners |
| they are apt to not decline coverage or cancel your | | | | insurance immediately after signing the purchase |
| policy within the first 60 days grace period for the | | | | contract. Not only is it required to be in place at |
| insurer even though the claims happened before you | | | | closing by homes for sale lenders, but also there |
| owned the homes for sale. | | | | always is the chance you may be rejected by the |
| Water damage is only one of many damage claims | | | | first chosen insurer and will need time to find another |
| insurers look for when underwriting your potential | | | | insurer. |
| homes for sale. They will evaluate all of the homes | | | | So, discuss with your realtor a contingency clause in |
| for sale claims history to determine if the potential | | | | any offer you make for a homes for sale before he |
| homes for sale is a disaster just waiting to happen. | | | | she begins showing you homes, and plan to begin |
| Since current homeowners have a motive to present | | | | looking for an insurer immediately after signing the |
| their homes for sale as perfect, it will not do much | | | | purchase contract. |
| good to directly ask them about previous claims. | | | | |