What is a CLUE report?
CLUE (Comprehensive Loss Underwriting Exchange) is a history of claims associated with an individual and his/her personal property (home or auto). A CLUE report includes:
- Date of a Loss
- Type of Claim (water damage, fire, wind, vandalism, theft, etc.)
- Amount Paid Out and Reserved by the Insurance Company
Loss history remains in the database for up to 7 years.
How do insurance companies use CLUE reports?
Insurance companies use information from the CLUE report, in addition to your insurance score, to help determine if an individual qualifies for insurance and what premium they charge for homeowners or auto insurance.
Using a CLUE report when purchasing a new home
When an insurance company runs a CLUE report, each report provides a list of past claims made by their policyholder (the home buyer) and at the risk address (the home being purchased). If losses are indicated at the residence being purchased, it could inspire the insurance company to ask further questions about the facts of each loss and whether the property owners have done anything to rectify the reason for the loss.
Can I order a CLUE report on property I want to purchase?
No. Under the Federal Fair Credit Reporting Act, these reports can only be accessed by the owner, insurer or lender of the property. However, you can request a CLUE report from the current owner of the property which is typically obtained from their insurance company.
Who is charged for a claim in the home-buying process?
If the insurance company adds additional premium charges for claim history, it would only be for past claims made by the buyer of the house (their policyholder), not for claims made at the new home they are buying.