For many years, insurance companies have been working with Comprehensive Loss Underwriting Exchange reports also known as a CLUE report. This report shows the insurance claim history of a home over a specific period of time. Insurance companies have always used these reports when setting the premiums to be charged to insure a property. Prospective buyers would be smart to request a CLUE so they will know of any past problems and areas that may have had previous damage. If the home had past water damage or a history of mold, it is possible that the insurance premiums will reflect this even if you were not the one to have filed the claim. If the home has been sold several times, it’s quite possible that the seller you are working with is not even aware of this history.

As a prospective purchaser, you do not have the right to obtain a CLUE on a specific piece of property. You will need to ask the buyer to do this for you. A homeowner can visit the site ChoiceTrust.com and click on C.L.U.E. Reports. If the property owner were giving the report to a potential buyer, he would be better off purchasing a Home Seller’s Disclosure Report. This would list five years worth of claims on the property but would not show any of the seller’s personal information.

Consider requesting a CLUE when you are seriously interested in purchasing a home. The cost is minimal and you could offer to reimburse the homeowner for this expense. It could be money very well spent if the history of the home shows negative information that might prevent you from making a poor decision.