A critical item that must be in place before closing on a home is homeowners hazard insurance.  Without it, the lender won?t fund the loan. 

Now the trick question:

Can an insurance carrier turn you down for homeowners insurance even if you have never filed a claim? 

Answer: Yes !!

Unfortunately, the homeowners' insurance claims history STAYS WITH THE PROPERTY, generally, for 5 years.  Therefore it is not the claims you have made, but the claims that have been made on the home you are purchasing that effect insurability.

As an example, a home with a history of claim(s) related to water damage may influence the insurance company not to insure the home for mold liability.

How do you discover whether or not the home you are considering to purchase has a poor claims history that may affect your ability to insure? The clues are in the C.L.U.E. report.  C.L.U.E. stands for the Comprehensive Loss Underwriting Exchange report.  It is the right of the potential Buyer to request a copy of this report from the Seller when making an offer to purchase a property.

Whether you are buying or selling a home, ask your real estate consultant help you find a C.L.U.E. ? report, that is.