CLUE reports let potential buyers know about water damage, mold...or any issue that might take it difficult to insure the home. It makes sense to simply ask for a CLUE report on any property that you want to purchase. Many mortgage companies are starting to order these reports as standard procedure because they could get stuck with an un-insurable property in case of homeowner default.

Much like a credit report, the homeowner must order the report. You would have to ask the seller to provide the report for you. It's advisable to make the purchase offer contingent upon receiving a copy of the CLUE report. Then, you should apply for homeowners insurance immediately upon acceptance of the contract. Insurers are looking for all the ammunition they can get to avoid losses.

We've all seen news reports about insurance companies declining to write policies in areas that are prone to hurricanes and tornadoes. Water damage is very crucial to know about, because of mold problems. So, if the claim has anything to do with water, it quickly puts up a red flag. Insurance companies feel that not only are some people accident prone...but homes can be as well!

Buyers should also check their own claim report. If you've had a lot of insurance claims, it might affect your ability to obtain more homeowners insurance coverage.

Your homeowners insurance will always be a most important part of your home purchase!

Pam Rumley is a veteran real estate broker in the Nashville, TN area. She is a true Exclusive Buyer's Agent, which means that her office never takes listings. This fact assures that there is never a conflict of interest regarding your real estate transaction. You can be assured of receiving 100% of her attention and loyalty - 100% of the time! For more information, visit her comprehensive website http://www.NashvilleRealEstateAuthority.com Be sure to check out her "Real Estate University" section, where you will find more informative articles on a variety of topics concerning homebuying.