Hazard Claim Resolution - What is it? - CLUE report explained

Hazard Claim Resolution - What is it? - CLUE report explained

I recently came across a bank owned property on the MLS that had "Hazard Claim Resolution" listed in the agent remarks section. My brother wanted to buy the home, but he was worried that there was some sort of hazardous removal needed or other issues with the property.

Here is what I told him what this phrase means: The hazard claim resolution is basically like obtaining free and clear title, so you can get title insurance, but in this case it is free and clear insurance claims, so you can get new fire and hazard insurance when you buy.

Nobody insuring this property will do it with unresolved insurance claims on it. It has to have basically a clean bill of health before your next fire and hazard insurance company will insure this property. Your next lender will require fire and hazard insurance on the property too, so it will be required for more than one reason.

Here is a short synopsis of how insurance companies track claims. All insurance agencies report to one central reporting agency for all claims on all properties they insure. No matter if it is fire damage or hurricane damage, if it is a claim that is filed and they have to reimburse the insured then it must be reported here. There is a report that can be pulled from this databse, it is called a CLUE Report.

Here is the definition of a CLUE REPORT:
A C.L.U.E. (Comprehensive Loss Underwriting Exchange) Report provides dates of claims, insurance company(ies) involved, the type of policy, whether loss was related to a named catastrophe (hurricane, etc.), location of the loss (on or off property), the amount paid and cause of the loss.

Only the owner of the property or an insurer can order the report. Reports for a primary residence can be ordered immediately on the internet from ChoicePoint® (Buy Direct), the company that compiles them. A report can be ordered at a cost of $19.50 per address.

Long story long.....the phrase "Hazard Claim Resolution" simply means that they are going to provide you with a document stating that there are not any outstanding insurance claims at this time. You basically have a free and clear property as far as insurance claims are concerned!!!

Happy Hunting!!!


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