insurance claims

If you are buying a new home in New Orleans, one of the last things you may do is find out the cost of home insurance.

But getting home insurance quotes on the front end is something you should consider before you fall in love with a new property.

Two things happen before you buy a homeowners insurance policy.

  • Soft Hit Credit Inquiry is run to firm up the premium (most companies use credit scoring)
  • Comprehensive Loss Underwriting Exchange or C.L.U.E. report is obtained

The report contains a history of losses on the property

It will include

  • date of loss
  • type of claim made
  • amount paid on the claim

 

So how does a CLUE report benefit you the new home buyer?

 

Its a free report run by the insurance company on a potential home insurance policy.

You can use this report to determine if the house you want to buy has had any prior losses such as, but not limited to

  • Electrical fire
  • Roof damaged
  • Water damage from busted pipes?

 

So WIIFM?  (What’s in it for me?)

 

If the seller has listed the house for $200,000 and you see on the CLUE report that the seller was paid $17,000 a year ago for a new roof replacement but the roof inspection shows a roof that is 10 years old, you can go back to the seller and ask…

“How come you didn’t replace the roof with the 17,000 check?”

or “Can I get a $17,000 credit on the list price because you didn’t replace the roof?

If you don’t bring this up and buy the house,  your new home insurance company will see the CLUE report and following their inspection,  will ask you to replace the roof since an insurance company paid $17,000 for a roof replacement.

It can affect your future insurability (difficult to obtain insurance without roof replacement)

or an insurance can deny future damage to your roof since the roof was supposed to be replaced with the $17,000 check and insurance companies don’t pay twice for the same damage.

 

What’s this all about?

You now have a bargaining tool for your new home purchase if the CLUE report shows past claims.

My name is Tim D’Angelo and I would like the opportunity to talk about your new home purchase.

Give me a call at 504.348.3131 or complete our quick form below