If you are involved in a residential sales transaction, the process can be complicated and stressful.  There are many obstacles that can arise to derail a home sale, which include buyer’s remorse, failure of a financing contingency, non-permitted improvements and many other potential obstacles.  Most people do not anticipate that prior homeowner's insurance claims will become a problem when selling a home.  

Because of the economic incentives of insurance companies when issuing coverage, carriers attempt to minimize their exposure.  One tool used by insurance companies to minimize their risk of loss is the Comprehensive Loss Underwriting Exchange (CLUE).  This service provides reports of claims and damage to real property.  Certain types of claims might make homeowners carriers hesitant to provide coverage.  If your home has suffered extensive water and/or mold damage, for example, this might make a homeowners insurance company hesitant to provide coverage.  Although the CLUE service was initially established to prevent fraudulent claims, the insurance industry now relies on this tool to screen applicants for coverage.

If your home has suffered damage that was the subject of an insurance claim, you might want to take a number of steps to reduce the risk that the insurance carrier for the buyer will decline to provide coverage.  Some of these precautions include:

Seek Legal Advice: If water extensively damages your home, you might want to promptly seek legal advice when evaluating how to handle the problem.  If you are considering selling your home within a few years, the water damage claim might cause insurance issues at the time of the transaction.  While the damage typically must be disclosed as part of the real estate transaction, proper measures to remediate the damage can increase the likelihood that the sales transaction is not impacted.

Obtain a CLUE Report: If you or a prior owner has submitted insurance claims related to your property, you might want to request a CLUE report before listing your home.  A review of the report will alert you regarding any potential claim related insurance issues that might impact the sale.

While there is no guarantee that an insurer will provide homeowners coverage when you attempt to sell your home, these steps can mitigate the risk of an insurer balking at the prospect of providing coverage.  

You can reach Miami Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Attorney Gonzalez-Sirgo directly at [email protected].

J.P. Gonzalez-Sirgo
J.P. Gonzalez-Sirgo, P.A.
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