Insurance Inspections

Some insurance companies are now requiring minimal inspection before allowing coverage. These inspections are based solely on the following requirements.  As you can see the items covered are very few and items such as the HVAC and Plumbing is NOT tested for functionality. These inspections should not be consider a substitute for a normal TREC or Building code based inspection. They are not associated with any governmental regulations or "VIP" requirements.

Items covered on insurance inspections:

Occupancy Status,  Year Built,  Construction Style,  Square Footage,  Number of stories                                                                           

Basement Present?, Foundation Type,    

Garage Type, Exterior Finish, Outbuildings & condition, Brush too close to building, Number of Feet to Fire hydrant

Roof Type, Roof Condition,              

Chimney Chase, Kitchen Grade, # Full Baths  and Type,           

Primary Heating Type, :  Heating Control Type 

Electrical System: AMP Capacity of Main Panel, Fuses or Breakers, Type of Wiring

Plumbing System: Plumbing System renovated, Condition of Pipes, Supply Lines (washing machine, Dishwasher etc) Fixtures (faucets, shower heads & spouts), 

Signs of Existing Water Damage or Leaks, , Unusual Hazards:

CLUE report reveals insurability concerns



Christopher Combs
Special for The Republic
Aug. 9, 2003 12:00 AM


QUESTION: When we closed on the purchase of our home in Peoria, we had a binder from an insurance company for a homeowner's insurance policy. Six weeks after we closed, the insurance company canceled our policy. The reason was that a "clue" report showed flooding in our home twice in the past three years.

We have contacted other insurance companies, but the cost of a new policy is outrageous. Our mortgage lender says that unless we get a new policy, it will purchase a new policy for us, but we will have to pay the premium, which will be more than five times the premium for our old policy.

What is a "clue" report? How can an insurance company cancel a homeowner's policy six weeks after close of escrow?

ANSWER: First, a "clue" report is a report issued by the Comprehensive Loss Underwriting Exchange, or CLUE. It is a clearinghouse of information relating to underwriting factors for issuing insurance policies on homes or other real property.

By law, an insurance company has up to 60 days after issuance of a homeowner's insurance policy to cancel this policy, based on a CLUE-type report, a credit report or a consumer report.

Due to complaints from consumers because of cancellation of homeowner's insurance policies, a new law, effective Jan. 1, 2004, was passed by the Arizona Legislature this year. It prohibits cancellation of a homeowner's insurance policy more than 30 days after the application by the homeowner, as opposed to 60 days under the current law, if such cancellation is based on a CLUE-type report, credit report or consumer report.

Q: I have owned a time share in Ruidoso, N.M., for eight years. I do not use this time share. I have not been able to sell, or give, the time share to someone else.

The time-share company refuses to accept the return of the time share. My annual bill for maintenance and assessments is almost $500. If we cannot find someone who wants this time share, will we have to pay maintenance and assessments on it forever?

A: Probably. Most time-share contracts provide that an owner of a time share has the obligation to pay maintenance and assessments until the ownership is terminated. This is similar to the obligation of owners of condominiums and owners of homes in planned communities to pay maintenance and assessment.

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