It’s important to know a home’s insurance history before purchasing it. A house with a high number of claims may be a sign of ongoing difficulties like roof leaks, water damage, or structural issues.
As a new homeowner, past home insurance claims can result in higher insurance premiums and more expensive repairs. This is simply because a home with insurance claims typically has a repetitive problem.
How Can Previous Home Insurance Claims Affect You?
Previous home insurance claims can affect your new home’s insurance in a variety of ways. Some of the most common ways you may see your home insurance impacted are:
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Higher Insurance Premiums For Your New Home: Insurers frequently use a home’s past claims history to determine its risk rating. Premiums may be higher for a home with several claims since it may be viewed as riskier.
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Undisclosed Issues With The Home: Some damages haven’t been completely handled or will eventually come up again. Understanding the claims history helps identify possible issues that the seller might not mention.
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Eligibility for Coverage: It may be more difficult to locate an insurance company that will insure the house if you have a claim involving certain types, such as mold or flood damage.
What is a Home’s CLUE Report?
A CLUE report is a resource for learning about a property’s insurance claim history. CLUE stands for Comprehensive Loss Underwriting Exchange report. It offers information on claim categories, repair costs, and dates for up to seven years of claims.
What Are The Limitations of a CLUE Report?
The CLUE report is excellent, but it is important to know that the information it provides is limited. It excludes occurrences that happened more than seven years ago and damages that were never reported to the insurance carrier. For this reason, it makes sense to combine a CLUE report with a professional house inspection.
How Can You Get a CLUE Report?
You will need to ask the seller for a copy of the CLUE report because only the current homeowner can request one. After obtaining it, carefully go over it to make sure previous problems were sufficiently resolved. A professional home inspection can provide extra peace of mind if anything seems uncertain.
Steps to Protect Yourself When Buying a Home
It is important to protect yourself, your finances, and your family when buying a home. Make sure you aren’t purchasing a lemon for your new home. Make sure you have the following:
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Work with an experienced real estate agent: An informed agent can assist in spotting warning signs and negotiating with the seller to resolve any outstanding concerns.
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Request a home inspection before purchase: A home inspection could uncover damages or problems that were not reported or have not been resolved.
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Ask your insurance agent about the history of claims on the home: Agents at Strickler Insurance can assist you in assessing the risk and calculating the potential impact of the home’s history on your rates.
Check Your Future Home’s Claims with Strickler Insurance
Buying a new house is already expensive enough; checking for home insurance claims before buying a home is a proactive step toward protecting your investment, so you aren’t spending more money than you need to. At Strickler Insurance, we’re here to guide you through the process and help you find the best coverage for your new home. Get in touch with us today to find out more about how we can help you check for home insurance claims before buying a new home.
