Buyers are solely responsible to investigate all issues about their insurance needs pre-contract or at a minimum during their due diligence period so the buyer does not become obligated to buy a property when their insurance costs are on the high end of their budget or expensive repairs are required (e.g. old roof, +20, old water heater, +12) or insurance availability is questionable during their ownership (e.g. CLUE report, already paid claims without repairs, number of claims, flood insurance issues).

REALTORS® can provide the SCR233 Insurance Disclosure upfront to buyers.

REALTORS® can attach SCR311 due diligence addendum to the SCR310 contract.

Buyers can ask/negotiate with sellers to obtain their CLUE report and to provide a seller disclosure or even make into contract contingencies.

"This Contract is contingent upon the Seller Delivering a complete, accurate and current insurance CLUE report and Residential Property Condition Disclosure Statement on the Property to the Buyers no later than _________________________, 2018." [RPCDS can be put into the contract via checkbox in Section 16 of SCR310.]

SCR Insurance Disclosure (aka Flood Insurance Disclosure) SCR233:

https://screaltors.org/wp-content/uploads/Forms/233.pdf

Also, note the SCR310 contract covers insurance too (along with SCR311 due diligence addendum allowing termination); see section 12’s (Survey, Title Examination, Elevation, Insurance) last sentence:

"Buyers are solely responsible to investigate pricing, availability, coverage, and requirements of insurance (e.g. flood, flood contents, hazard, liability) for the property prior to signing Contract."

Google search "insurance CLUE report" to learn more. Here is an example of online information on the CLUE report along with how to get a CLUE report:

https://www.investopedia.com/terms/c/clue-report.asp

Buyers should also look at what they are buying to see if the pro’s and con’s best fit their needs and desires. New construction has some pro’s and con’s. REO deals have pro’s and con’s. Average residential re-sale deals have pro’s and con’s. Older and younger built re-sales have pro’s and con’s. All property deals have pro’s and con’s.

Posted by: Byron King on 12/11/18 (This information is only accurate as of 12/11/18. You must contact SCR for updates and changes to this information after 12/11/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)