Register Real Estate Advisors

Do you know about C.L.U.E. Reports?  If you are purchasing a home, you should be familiar with the term.  A C.L.U.E. Report is a Comprehensive Loss Underwriting Exchange Report that provides details on insurance claims filed in the past five years.  These details may include wind, water, or mold damage.  They are property specific, not people specific, and impact the cost of insuring the home. 

How does this impact buying a home?  If you want to purchase a home and it has had damage in the past five years, you insurance company will know about it before they insure the home.  They may choose not to insure the home for reasons listed above.  So it is possible you could find the home you want and not be able to insure it, even though you have never had an insurance claim on a property.  Not likely to happen, but it could.  Always check into an insurance policy before you purchase a home to make sure it is insurable.

1. Raise your deductible – if you can afford to pay more toward a loss that occurs, your premiums will be lower.
2. Buy your homeowners and auto policies from the same company – you’ll usually qualify for a discount. But make sure that the savings really yields the lowest price.
3. Make your home less susceptible to damage – keep roofs and drains in good repair. Retrofir your house to prtect against natural disasters common to your area.
4. Keep your home safer – install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.
5. Be sure you insure your house for the correct amount – remember, you’re covering replacement, not market value.
6. Ask about other discounts – for example, retirees who are home more than working people may qualify for a discount on theft insurance.
7. Stay with the same insurer – especially in today’s tight insurance market, your current vendor is more likely to give you a good price.
8. See if you belong to any groups – associations, alumni groups – that offer lower insurance rates.
9. Review your policy limits and the value of your home and possessions annually – some items depreciate and may not need as much coverage.
10. See if there’s a government-backed insurance plan – in some high-risk areas, such as the coasts, federal or state governments may back plans to lower rates. Ask your agent.

Reprinted from Realtor Magazine Online by permission of the National Association of Realtors, Copyright 2005, All rights reserved.