C. L. U. E. stands for Comprehensive Loss Underwriting Exchange. Why do you need to know about this? Because insurance companies are raising homeowner insurance rates, or, in some cases, refusing to insure the home at all. Mortgage lenders require the homeowner to carry fire and hazard insurance in order to protect the collateral for the loan (the house). In the past, the buyer contacted an insurance agent shortly before the closing, put in place a homeowner policy, and it became effective at the close of escrow. Here's the kicker.... While that is still occurring, the insurance companies have the right to cancel a homeowner policy FOR ANY REASON within 60 days of issuance. Some new homeowners find that after they close the transaction, and move in to their new place, the insurance company cancels the policy. They are then faced with finding new insurance coverage, often with higher premiums and/or deductibles. The insurance companies say that rates are rising due to increased property values, the high cost of home repairs, investment losses, mold claims, aging housing stock and the number of recent catastrophes. So, just what is the C. L.U. E. report? It is a database of homeowner claims created by a company named ChoicePoint Inc. located in Alpharetta, Georgia. Insurance companies are using this data to identify homes on which claims have been made, and the number of claims made by homeowners. So, even if you are "squeaky clean" the house you wish to buy may not be. If a house has too many claims against it, insurance companies may not provide homeowner insurance for it, or may charge inflated rates. For $12.95, you can order a C. L. U. E report of the history of claims for your own property online at www.choicetrust.com. You cannot, however order a report on a house you wish to buy. You'll have to ask the seller to provide one. Because it can take several weeks to receive the information, it is very important to request the C. L. U. E. report immediately after your offer is accepted. If there is going to be a problem, both you and your lender, as well as the seller will want to know before closing.