Buying Your Katy-Cinco Ranch-Richmond Area Home For The Best Price!
Katy-Cinco Ranch-Richmond Area Home
For The Best
Chapter 19 So You Don’t Have a Clue?
Start your insurance buying process long before closing!! Get several estimates or quotes if possible.
Insurance companies are tracking houses in a system called the Comprehensive Loss Underwriting System (CLUE). Unknown to most of us claims filed (not necessarily claims paid) for houses have been entered into this system for many years. The system tracks 27 or more causes of loss. Different companies are using these reports differently, but three claims in five years marks a house as uninsurable to many companies. CLUE reports can be accessed by an insurance agent.
The CLUE will also tell you if a claim has been made and paid by a the insurance company. One scenario is that a roof claim was made and paid for, but no new roof was put on the home. In that scenario if you buy the house and have a roof claim, the claim will be denied because a new roof was already paid for in a previous time.
Insurers are also tracking people. We think most companies are using an evaluation system similar to the FICO rating. Some companies will not insure you if your credit score is too low.
Home purchases have fallen through this past year due to these factors. You can not assume the house you want is insurable or that you are insurable, or that the house or you may be “rated up”!!
Shop insurance. But you must take time to see what is covered and what isn’t covered. Most lenders require you to have insurance, but unlike car insurance, the terms and company are mostly left up to you.
Some lenders will require flood insurance. This is a separate policy from the Homeowner’s insurance and is purchased separately. The cost varies with the position of the home on the FEMA floodplain map.
Fred Miller, Realtor serving Katy, Cinco Ranch, Pecan Grove, Richmond, Westpark Tollway, Fulshear. FredMiller9@gmailcom , www.RichmondKatyHomes.com, Office receptionist: 281/342-2288 Cell 281/924-2531