I read this discussion posted by Michael DellaCamera, Technology Director at GLVAR when one of my Seller’s asked me this same question “What is CLUE?”, so I thought it would be a helpful read for Buyers, Sellers and Real Estate Agents.  Happy Blogging  – Jackie

What is CLUE?

Defined by GLVAR Staff Attorney Deanne Rymarowicz

The most common question this week has been the inclusion of a new request under “Inspections and Related Expenses” and that is the request for the Seller to provide a CLUE Report. CLUE stands for Comprehensive Loss Underwriting Exchange. (Tip: it’s a defined term in Section 23, “Definitions.”)

CLUE is a national database where insurance companies report loss payouts on a homeowner’s insurance policy. For example, if the insurer paid a claim to replace drywall in a master bathroom due to mold, that would be reported.

A CLUE report is an independent source of information about insurance losses at a home address within the past five years. The buyer’s insurance agent will typically pull a CLUE report as part of the underwriting process. Or, the homeowner may go online to http://www.choicetrust.com and for less than $20 order a “Home Seller’s Disclosure Report” which contains the same insurance information about the house, but without the seller’s private information. (Hint: on an REO, the asset manager probably will not provide the CLUE report, but the buyer may still obtain the information, but not a physical copy of the report, from his/her insurance agent.)

According to the CLUE website, “If the report for the property indicates that insurance losses have not occurred within the past five years, the buyer can feel comfortable that insurance loss history of the property should not impact the availability or pricing of Homeowners insurance.” The CLUE site also has an informative page on how to read a CLUE report.