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Arizona Purchase Contract | Insurance Claims History

The Arizona Purchase Contract states that a seller shall provide a five year insurance claims history, or for the time period that the seller has owned the home, if less than five years. This can be obtained from the insurance company and is commonly referred to as a CLUE.

The buyer must provide notice to the seller of any items disapproved within the inspection period or within five days of receipt, whichever is later.

When purchasing a foreclosure property, a buyer will generally not receive this type of disclosure and will typically be asked to waive the CLUE.

I commonly advise purchasers to obtain a homeowners insurance quote from their preferred insurance company within their inspection period. If a property has had many claims, their rates will typically be higher and may affect their purchasing decision. The inspection period is a buyer’s opportunity to research the property and any items that could materially affect their decision or ability to purchase the property.

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