WHY SHOULD YOU CHECK THE CLAIM HISTORY ON THE HOME BEFORE YOU MAKE AN OFFER

January 25, 2024

WHY SHOULD YOU CHECK THE CLAIM HISTORY ON THE HOME BEFORE YOU MAKE AN OFFER

Buying a home is a big decision, and there are a lot of things to consider. One important factor to consider is the home's claim history. A home's claim history can tell you a lot about the property, including its potential risks and liabilities.

To identify potential risks because a home with a history of claims may be more likely to experience future claims. This could be due to the location of the home, the age of the home, or the materials used in construction.

The cost of insurance can be higher for homes with a history of claims. Insurance companies factor in the risk of future claims when setting premiums.

You may be able to negotiate a lower price if you discover the home has a history of claims. This is because the seller may be motivated to sell the home quickly to avoid future claims.

The Comprehensive Loss Underwriting Exchange (CLUE) is a database that tracks insurance claims filed on homes. A CLUE report can be purchased for a fee, and it will show you the number and type of claims that have been filed on the property within the last seven years.  

Checking the claim history of a home is an important part of due diligence in the home-buying process. It is important to remember that the claim history is not a perfect predictor of the future. Just because a home has had claims in the past does not mean that it will have claims in the future. However, the claim history can give you valuable information that can help you make an informed decision about whether to buy the home.

If you have any questions or want to sell your property, contact me at (609) 948-4306. I look forward to hearing from you.


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