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Feb 04
Research Q&A: CLUE Reports

Question: A realtor that I work with closely asked if it was possible for us to run CLUE reports for their buyers but to provide information on prior claims for the home being purchased, not just what is on the owner's record. I know some carriers do not want to write insurance on a home if it's had numerous claim issues, even if the buyer's experience is clean. You would think this is information that can be provided, but I also do not want to violate any privacy concerns.  I'm thinking if the seller signed a release, that would suffice. Just wondering if it's permissible as part of the underwriting process?

Answer: There is a good article on Big I Virtual University about this (you must log in with your IIAC user ID and password.) Here is an excerpt particularly relevant to your source's question:

Fact Act regulations limit accessibility of CLUE reports to insurance carriers (and some agents if authority is given by their carrier), mortgagees and the homeowner – and only for their period of ownership. No one else can order a CLUE. However, nothing in the regulation prevents a buyer or potential buyer from requiring the seller/owner, as a condition of the offer, request and provide a copy of the CLUE. It's the homeowner's information, and what they do with it is up to them. Obviously, though, the seller can refuse or even redact information from the report deemed personal or irrelevant.

Therefore, it probably makes the most sense for the buyer to condition a purchase offer on the seller providing a copy of the CLUE report.​

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