Buyers are Clue-less without this report
For the sake of the story, let’s just call him John.
John decided to purchase a home and did not call his insurance agent like his real estate agent suggested. He turned in all of the information to the lender, completed his inspection and thought all was OK.
What he soon found out is that his insurance was going to cost 3X as much as he budgeted due to prior claims on the home.
Since he had successfully completed the inspection period, there was nothing that he could do.
John was stuck paying more than he should and it could have been avoided with a simple call.
The CLUE [Comprehensive Loss Underwriting Exchange] report is like a credit report for your home and details every claim reported to an insurance agency over a five year period.
This report helps your agent set the rate for your home. So, it is extremely important that you have them pull this during your inspection period.
Because the insurance information is not required on the front end, many people wait to contact their insurance agent until they are halfway through the home buying process.
This is a big mistake because you could get stuck with a huge insurance bill with no way out.
You might even find that your favorite insurance company won’t write your policy due to previous claims on the home.
Don’t wait until it’s too late. Call your agent as soon as you get a home under contract and ask them to pull the report and to give you a rate.
If you need referrals to home insurance providers, just hit reply and I will send you a list of great, local agents that we and our clients have used.
The Daily Deal in Nashville is a brick ranch that is move-in ready and located in convenient Donelson. This home is listed for less than $190,000.
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