All the problems that the insurance industry has experienced recently are now adversely affecting home owners. And I don't just mean in the way of higher insurance premiums. Because insurance companies have been hammered with claims they are now forced to look extra hard at which properties they will insure and they are denying coverage on more and more homes sometimes AFTER the homeowner has closed on the purchase of the home. When a soon to be new home owner applies for hazard insurance many companies are reviewing the home's history to learn what claims if any had been filed or paid in the past. These companies then base their decision as to whether or not they will insure that home on that history.

If you are in the market to buy a home, here is a quick list of things you should do to protect your interests:

1. Require the Seller to provide you with a written five-year premises claims history from their insurance company OR a Comprehensive Loss Underwriting Exchange (CLUE) report (with any reference to date of birth or social security number obscured) as a condition to your purchasing the home. Require that this be provided during the home inspection period which is USUALLY the first ten days following acceptance of the sales contract between Buyer and Seller. Share the report with your insurance provider and discuss any findings.

2. Submit your insurance application as soon as possible, ask questions and obtain written confirmation of the availability and cost of homeowner's insurance for the premises.

3. Laws in some states allows an insurer to CANCEL a new insurance policy based upon the condition of the property after an inspection of that property. For this reason, confirm that the insurer conducts any inspections BEFORE the expiration of the home inspection period mentioned above. If you discover EARLY in the home purchase process that the insurer found conditions which warrant unusually high premiums or denial of coverage altogether then your Realtor will still have time to either get you out of the deal or negotiate that the Seller correct the conditions at his or her expense vs. yours.

4. Make sure that your Realtor negotiates that you may cancel the contract without penalty in the event that the claims history contains any adverse information that would prevent you from obtaining insurance.

By now you probably recognize that insurance issues alone can truly complicate a real estate transaction and potentially hurt you financially. Do yourself a favor and hire a seasoned and experienced Realtor.