Buying a Home: Do You Have a C.L.U.E.?

You have just found your dream home, and being a smart homebuyer, you want to make sure there are no costly repairs or problems before you buy.  The most common method of finding issues with a home is the home inspection.
What you may not know, are home inspectors are limited to a specific scope of work and liability since they are not required to be general contractors or tradespeople. If an inspector misses a problem with your home, in many states, they are only liable up to the cost of the inspection.  In addition, inspectors can not tell you the history of a house, nor can they give you an overview of what may have been repaired or altered behind the walls.

These details are only available if you have a C.L.U.E. report!

What’s a C.L.U.E. report?

C.L.U.E stands for (Comprehensive Loss Underwriting Exchange) and it provides; the reason an insurance claim was paid, dates of claims, whether the loss was related to a named catastrophe (hurricane, etc.),  location of the loss, and the amount paid and cause of the loss.
In short, a C.L.U.E report tells you about insurance claims against the home for the last 5-7 years.  This is important, since sellers often do not accurately disclose Mold, fire, water, and electrical damage. Using the C.L.U.E report, in conjunction with your home inspection report will provide a more accurate profile of the home you are buying.
If you have never heard of a CLUE report, you are not alone. A survey commissioned by insuranceQuotes.com, found that 82 percent of Americans have never heard of the report which includes Real Estate agents and Realtors.

Where can I get a C.L.U.E. report?

As a homebuyer, you have two (2) options:

1) A free C.L.U.E report can be obtained once a year from LexisNexis. Requests can be made online or by calling (866) 312-8076. LexisNexis requires the CURRENT homeowner  request the C.L.U.E report. If you are buying a home, I would suggest you require the current owner obtain a C.L.U.E report as part of your agreement to purchase the home.

2) If  you are obtaining homeowners insurance for the house, ask your insurance agent to give you a summary of the CLUE report. Most insurance agents will provide the report for no charge if you are insuring the house through them.

When buying a home, always obtain as much information as possible on the house you have selected.  A few minutes of planning and discernment, could save you $1000s of dollars in the long run.

Happy House Hunting, you now have a C.L.U.E.!!

James Smith

James Smith

Realtor / Broker at Executive Sellers Realty
Mr. Smith is an award winning Realtor in Charlotte, North Carolina, winning both the 2016 and 2015 5-Star award by Charlotte Magazine.Mr. Smithalso holds the highest Real Estate Designations in the industry including the GRI and CRS as well as degrees in Finance and Engineering. Mr. Smith may be reached at james@executivesellers.comor704-491-2870
James Smith

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