The era of CLUE reports has finally ended. Soon NHD companies will no longer provide an option to order this report. How will it affect those agents who order them as part of their disclosure package? Not much really!
A CLUE report was a little add-on report to the Natural Hazard Disclosure (required for all California properties) that identified any insurance claims. The cost was about $25.00 and as of late required wet signatures on a request form from the seller (a real pain in the you-know-what!).
When a buyer purchases fire insurance for their new home (a requirement for all lenders), the first thing the insurance agent will do is to pull up a database that shows a history of claims for that property. They want to be sure they are not inadvertently insuring a property that has a high risk of future claims (floods, fires, etc.).
The buyer upon request should be able to obtain a copy of this report.
Additionally, on the Seller Statutory Disclosure and the Seller Property Questionnaire, the seller must disclose if they are aware any insurance claim in the last 5 years.
Finally, CLUE reports are NOT a requirement of the purchase agreement contract.
The CLUE report was an expensive duplication of efforts!