Many clients during a home search have wondered if a property they wish to purchase had any flood, fire, or other damage unbeknownst to the current owner. Sometimes a seller would like to show prospective buyers there has not been any property damage during their ownership as a selling tool. Well, this tool is known as a C.L.U.E. Report. Short for Comprehensive Loss Underwriting Exchange, this report offers information on a specific property as to which type of policy is in force, the dates of any losses, if it was a named storm or not, and the cause and amount of loss paid out by the insurance provider. This report also goes back 5 years. Both sides of a real estate deal can see the value of the information a CLUE Report provides. However, there are a few things you should know before requesting a CLUE Report. First, only the insurance provider or the property owner may order a CLUE Report. Buyers may not, but may request one from the seller at their expense for review. A report runs approximately $20.00 and is well worth the peace of mind it provides. Another benefit of a CLUE Report over other loss history reports is that it keeps the property owners personal information such as SSN, full name, and date of birth confidential.
Obviously, there are limitations of what a CLUE Report can provide. If the current owner has lived in their home for more than 5 years without a loss, but the previous owner had multiple losses this information will not show. It simply shows a snapshot in time over a short period. The report should be used as an additional tool to provide a more comprehensive picture of a property’s condition. Quality home, HVAC, plumbing, foundation, electrical, and other property specific amenities such as pool inspections should be the primary source of information for determining if a property is in a desirable condition for purchase or not. A CLUE Report may be requested online for a primary resident online at any time. If you require a report for a secondary, rental, or vacation home the request must be made by mail.
More than anything, a CLUE Report helps provide a selling tool for a property owner or reassurance to a buyer. With anything in real estate, the more information available the better for making a well informed decision. You may request your own CLUE Report at the link listed below.
Matthew W. La Rose – Realtor, SRS, GREEN
Dorian Bennett – Sotheby’s International Realty
2340 rue Dauphine
New Orleans, LA 70117 USA
Licensed in Louisiana