Previous Home Insurance Claim Shared with Prospective Buyer

last year

My wife and I are currently selling our home in FL. The home buyer had a number of inspections done with the home over the course of a day with no issues at all. After the inspections, the buyer asked about a home insurance claim and named a specific amount that was paid for the claim. It was later found that he had a copy of the claim report. From what I have read, insurance claims can be and will be shared between companies. However, outside of that, I would have to authorize that the claim is released to anyone else outside of my insurance company. Is this not correct?

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HU-72499350
Original Author

last year

last modified: last year

His quote was with the same company I recently got a quote with and was very reasonable. I did read that insurance companies share information. However, I also read that outside of insurance companies, I must permit the release of insurance claims. So how did this prospective buyer get this information without my consent? I do not believe a buyer can get this information. I mean I can just go say "I wanna buy house X I need a quote and the claims report".

A C.L.U.E. report can only be requested by the owner of a property or an insurer, so if you are planning to buy a home and want to review a C.L.U.E. report, you will have to ask the owner to request it.

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Comments (11)

rrah
last year
No, that is not correct. Home Insurance companies share information just like creditors share information. Google CLUE report or take a quick look at this article. Although it's focused on Washington, it's true nationwide.

I've never heard of a buyer requesting a CLUE report on a house, but it's possible that when the buyers asked for an insurance quote they were given information in the report by the insurance agent. If you filled a claim, their insurance rate maybe higher. For example if you filed a claim for your roof because of a storm, that will effect their rate.

Many people don't realize that claims stay with a house and not necessarily with the insured person.
aziline
last year
Quick Google says it is legal. It's called CLUE. Comprehensive Loss Underwriting Exchange. It'll show them all claims within the last 7 years but not your personal info.
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aziline
last year
last modified: last year
I stand corrected and get yet another lesson on why i should read to the bottom of the page :) The site I was on talked about how it is sooo helpful to buyers so i assumed they could obtain one. It wasn't until the very bottom it said that only owners can request one every 12 months.

I gotta say I am surprised this isn't an "just how it's done" thing in real estate sales. It seems to fit right in with the home inspection clause.
HU-72499350
Original Author
last year
Well our home went through hours of inspection from multiple parties. If you like a house.. its inspected and everything is good then why not buy it? The claim was all cosmetic anyways. Upon receiving it they should have been happy and moved forward. Always drama... greed kills so many deals.
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Jeffrey R. Grenz, General Contractor
last year
Regardless of prior settle & presumed repaired claims, current inspection reports & potential repair costs.... its all still a negotiation that can be reopened after receipt of these disclosures.
3onthetree
last year
You are saying the buyer backed out because of a past insurance claim? So the offer was contingent on review of any insurance claims?
HU-72499350
Original Author
last year
He never paid EMD.. contract expired. I just have no idea how he legally obtained a copy of the insurance claim.
PRO
Jeffrey R. Grenz, General Contractor
last year
EMDs are usu due in 3-5 days & collected before any inspections.
Jane
7 months ago
his home inspector subscribes to a database that taps into insurance databases works just like carfax
Rohan Standum
7 days ago
I've never been in that exact situation, but I know insurance companies can share claim information when you're buying or selling a home. It's part of the process to assess risk for the new owner. As for authorizing the release of the claim, it might depend on your policy and state laws. It's worth checking with your insurer to get clarity.

Previous Home Insurance Claim Shared with Prospective Buyer

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rrah

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