There is a little known insurance database called Comprehensive Loss Underwriting Exchange (CLUE) used by member companies to determine the risk for a specific home. In plain english this means the home you are about to buy could be considered a bad insurance risk.
When a new property owner applies for homeowners insurance, a CLUE report is requested. If that home has had a claim in the past 7 years, it could cost the new homeowner a lot of money.
A more expensive homeowners policy isn't the only problem to consider if previous claims are discovered. What if the damage wasn't fixed properly? What if it wasn't fixed at all?
Currently, the SC Residential Property Condition Disclosure Statement (Property Disclosure) does not ask if the current owner has ever put in an insurance claim. As the potential new owner (the Buyer), if you have any concerns you should check the insurance history of the home before the end of the Inspection Phase - usually 10-12 days after the contract was signed by all parties.
Under the federal Fair Credit Reporting Act you can request a copy of the CLUE report from LexisNexis® toll free at 1-866-312-8076 or by visiting https://personalreports.lexisnexis.com.
If this is news to you, don't feel left out. Most real estate agents don't have a CLUE either.