Summary:
Talks to the home buyer about the greater difficulties being experienced in getting insurance due to insurer risk avoidance and credit problems. Describes and recommends the C.L.U.E. Report.

Details or Sample:
With natural disasters costing insurers billions of dollars, they´re becoming more careful in taking on added risk. Then there have been the lawsuits due to mold, with their very high damage awards. Many insurers will not even cover mold in their policies. Some have excluded certain types of coverage in certain areas or states. Another method of reducing risk for insurance companies is to re-structure policies with lower limits, or to exclude multiple claims or limit the number of claims for certain damage.

Now many insurers also base coverage decisions on the credit worthiness of the buyer. Some buyers have put great effort into working with lenders to get over less-than-perfect credit issues and get a decent loan. Then they find they´re at risk of losing their dream home because they can´t find an insurer willing to issue a policy. This is common enough to cause certain states to cover it as a contingency in their purchase agreement forms. The home buyer with marginal credit might want to canvas a few insurers before the purchase just as they do mortgage brokers.

On the subject of mold or previous water damage to a home, the buyer and even their inspectors may not be aware of previous damage. The seller may not have to disclose repaired damages. Indeed some sellers may not know about damage that occurred during previous ownership. Not knowing may or may not be a problem to the new buyer if there seems to be no lasting effect. However, it can be a problem to closing the deal on the home if the insurer knows. And they frequently do know. How does a buyer find out? Unfortunately, it´s usually when they are denied insurance.

To get this out of the way in a hurry, the informed buyer will require a C.L.U.E. Report from the seller very early in the process. C.L.U.E. stands for Comprehensive Loss Underwriting Exchange.....[more]

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