The CLUE Why Your Home Insurance May Be Denied!
Make Sure You Do Your Home Insurance Homework Before Buying Your Home!
You Need To Have A Clue As To Whether Your Insurance Company Will Insure Your Home!
The Last Thing You Want Is A Home Insurance Claim Denied!
The following excerpt is taken from an article, by Paul Banister of Bankrate.com.
CLUE is the Comprehensive Loss Underwriting Exchange, which tracks insurance-claim histories of both people and properties, and it can be a major roadblock on the highway to homeownership.
Home buyers who have never made a claim on their own policies are finding themselves being rejected for insurance coverage on the house they've just bought, because the house itself has a poor CLUE record.
If you can't get insurance coverage, you can't get a mortgage. Worse, if you pay cash for a house and then get turned down for coverage, you can find yourself between a rock and a hard place -- either paying excessive premiums to get your property protected or "going bare" with no insurance protection against a variety of perils.
"Buyers assume that because they have a good insurance history that getting a policy on their new home will be routine," says John Dixon, a Chicago real estate lawyer.
You might find, after closing, you can't get a policy, and you're in breach of your mortgage, which requires you to keep the property -- the lender's collateral, after all -- protected.
Visit Bankrate.com for the full report.
Our further investigation and your input, may provide an answer for our Australian readers, as to whether there is a similar database here in Australia?
Another great article on the CLUE database can be found on privacyrights.org. This website explains in detail the CLUE database, how to get a report and further tips for Insurance Consumers.
CLUE is the Comprehensive Loss Underwriting Exchange, which tracks insurance-claim histories of both people and properties, and it can be a major roadblock on the highway to homeownership.
Home buyers who have never made a claim on their own policies are finding themselves being rejected for insurance coverage on the house they've just bought, because the house itself has a poor CLUE record.
If you can't get insurance coverage, you can't get a mortgage. Worse, if you pay cash for a house and then get turned down for coverage, you can find yourself between a rock and a hard place -- either paying excessive premiums to get your property protected or "going bare" with no insurance protection against a variety of perils.
"Buyers assume that because they have a good insurance history that getting a policy on their new home will be routine," says John Dixon, a Chicago real estate lawyer.
You might find, after closing, you can't get a policy, and you're in breach of your mortgage, which requires you to keep the property -- the lender's collateral, after all -- protected.
Visit Bankrate.com for the full report.
Our further investigation and your input, may provide an answer for our Australian readers, as to whether there is a similar database here in Australia?
Another great article on the CLUE database can be found on privacyrights.org. This website explains in detail the CLUE database, how to get a report and further tips for Insurance Consumers.
The CLUE Why Your Home Insurance May Be Denied!
