This suddenly has become a major concern because of recent changes in the way the insurance industry prices its products and provides coverage. Some insurance companies, having been stung by large claims for mold-related issues, have adopted policies of simply not insuring properties that have had "non-weather-related water damage claims" in the last several years. This has left some homes virtually "blacklisted" and almost uninsurable.

The best approach for dealing with the problem seems to be to have both buyers and sellers obtain either a Comprehensive Loss Underwriting Exchange report or an alternative personal insurance history from their insurers as early as possible in the process. The CLUE report is the way that approximately 90 percent of the insurance industry tracks the claim history on a specific property, as well as their experience with their individual clients.

As you might expect, the seller's report would be likely to reveal any significant problems with the subject property and the buyer's version might indicate whether he or she has a tendency to make frequent or frivolous claims. Needless to say, a negative disclosure on either of these reports could affect the price and terms, or even the willingness of an insurer to extend coverage.

The CLUE report is a centralized database used by most insurance carriers, much like major credit bureaus file a person's credit history. We had a buyer who was denied homeowner's insurance just prior to closing on a home, because the seller had filed three minor claims within the past year, two of which were at a common entry at the roof vent and one from a sewer drain damaged by tree roots. Many carriers have adopted policies to potentially drop customers, even long-term customers, if more than one water claim is filed in a given year. It has been said that even an "inquiry" to your insurer about whether something is covered may be given the same weight as though it were an actual claim. In other words, think carefully before you call your carrier. Our customer actually had paid approximately $2,000 out-of-pocket for the three incidents, but friends convinced her she should call and seek payment by her carrier. She did and it cost her. Her carrier of 18 years dropped her.

Should you find yourself in the situation of not being able to get your insurance, especially if you're about to close on the sale or purchase of a home, Lloyds of London provides a possible solution -- albeit more expensive in its premium. In our customer's case, we were able to help her get this coverage from Lloyds, and when the next buyers came along, she helped them by giving them a credit for the difference in their first year's coverage between a normal premium and what Lloyds of London charged (then about a $900 difference). After a year, the new owners could then file for regular coverage.

In general, insurers will provide reports to their own clients free of charge, but they also can be obtained online from a company called ChoicePoint at www.choicetrust.com.

To avoid a last-minute problem, it is far better for the buyer to check into insurance availability for a desired property "sooner rather than later." For more information on this subject, or to learn more about the author, see www.TeamAlters.com.

As a team, Realtors Frank and Sharon Alters, who have earned the e-PRO and GRI designations, have 18 years of successful combined real estate experience. Members of the company's Gold Pinnacle Club for sales exceeding $10 million, they specialize in resale and new homes, upscale homes and corporate relocation throughout North Florida and Orlando, as well.

The Alters work at Watson Realty Corp.'s Orange Park/Fleming Island office, and may be reached by calling (904) 673-2307 or through their Web site at www.TeamAlters.com.