As a homebuyer, a CLUE report can give you leverage when negotiating your purchase contract.
Today I’m joined by my friend Paul Guerrero of Allstate Insurance to explain how you as a homebuyer can use insurance as leverage when negotiating a purchase contract.
To lower your premium, you can use a CLUE report, which is a report that insurance agents have access to that tells them about any losses filed on the house you’re about to purchase within the last five years.
It’s important that you get this CLUE report up front.
How does this help you? If the people who owned the home before you filed a theft claim, for example, you would inherit those losses, which can increase your insurance costs or make you significantly less insurable.
It’s important that you get this CLUE report up front, and the easiest way to do so is to call an agent such as Paul, who will provide it to you for free as part of the quote they offer you. Ideally, they prefer to do this consultation on day one of the option period because it will give them information that may have not been disclosed in the disclosure agreement.
If you have any questions about a CLUE report or you’d like to schedule a consultation with Paul, you can give him a call at (512) 441-8597.
As always, if you have any other real estate questions for me, don’t hesitate to reach out to me. I’d love to help you.