CLUE is an acronym for Comprehensive Loss Underwriting Exchange, which is like an insurance industry clearing house that reports on the claims histories of people and houses. Insurance statistics state that about 90% of all claims are reported by insurers to CLUEs. Insurance companies also check CLUEs when deciding wheather to issue a new policy to a home buyer. The typical report costs about $25 dollars and shows what claims have been lodged against a property in the last five years.

Weather buying or selling a home, the CLUE report can work to your advantage.

If you're buying a home, new construction or existing, consider making your offer to purchase contingent upon both a satisfactory home inspection and a CLUE report before the closing date. If the CLUE database indicates the home your buying has been involved in more than 1 or 2 claims in the past 5 years, you may have to pay much higher premiums for coverage or you may be denied coverage all together. In most cases, insurance is required before a mortgage loan is granted and if a home owners policy can't be obtained, it will be very difficult to get a loan.

If you're selling a home and an insurance claim has not been filed for several years, pay for the CLUE report so you can show copies to the prospective buyers. A clean report can increase buyer confidence, knowing that no major problems from issues like mold or clean up from flooding has occurred, which sometime create health and construction issues even after the repairs have been made. A clean report, included with the Disclosure Statement may help you sell your home faster, with more confidence and possibly for more money.