GET A CLUE!

When you are preparing to either purchase or sell a home, the Daytona Beach Area Association of REALTORS suggests you consider obtaining a C.L.U.E Report. Why? Because some consumers are discovering that this report can slow down or even destroy a real estate transaction when a buyers finds out they either cannot obtain homeowner's insurance or the premiums are extremely high.

What's a C.L.U.E. report? CLUE stands for Comprehensive Loss Underwriting Exchange, and represents a nationwide computer database that contains a variety of consumer transactions ranging from simple questions about policies to major claims. Participants at all levels of the insurance industry input these details into the database, which is then used to make a decision about the insurability of both the individual and the property. The system was developed by, and is currently operated by LexisNexis.

The usual C.L.U.E. report contains general information about either an individual or about a property. Of most importance is the claims history of the individual or the property, which includes a list of all claims made in the last 7 years. Details in the claims section include the policy and claim number, the date of the claim, the insurance company, the property address, cause of loss and amounts paid out, if any, and the claim status. Similar to a credit report, the C.L.U.E report also identifies who has received a copy of the report over the past two years.

For consumers, the most important thing is the claims history section of the C.L.U.E. report because it details nearly every transaction between the consumer and the insurance companies. It might be shocking to discover that your history may include a phone call made to your insurance representative regarding a loss, whether or not you ever actually filed a claim.

Some experts warn consumers to think seriously about the implications of making a claim before calling an insurance representative. Multiple claims made by an individual can follow that individual from home to home and cause difficulties in getting homeowner's insurance or raise the premiums. Likewise, multiple claims made on a particular property may cause that property to be either uninsurable or carry extremely high premiums.

You can obtain a C.L.U.E. report on-line for a fee. And be sure to discuss the results of your report with your REALTOR before you buy or sell.