All the steps that go into buying (and selling) a home today why complicate the process by adding another step? Well in some cases adding an extra step at the beginning of the process might help eliminate problems down the road.
The “CLUE” is a comprehensive report of claims on (and off) the property for the last 7 years. It gives buyers an “inside look” of things occurred but aren’t mentioned on the property disclosure forms. It only records claims that are filed (and in some states calls to insurance companies about filing are also recorded) but the report doesn’t include any damage and/or repairs the sellers handled by themselves. So a broken sump which resulted in a wet basement which the seller took care of won’t appear on the CLUE report.
Why would a buyer want the CLUE? If insurance claims for fire, water damage or mold have been recorded potential buyers may want to move on to the net property. In many cases the Property Disclosure lists all the issues and the CLUE is not a deal breaker. However only the property owner can request a CLUE report. So potential home buyers need to ask sellers to obtain a copy and share the report in a timely manner.
Bottom line -the seller who has filed too many insurance claims can end up costing the buyer more money to insure the property. Buyers who want to know more details than the what’s available on property disclosure and home inspection reports should consider asking the seller to provide the CLUE report too.