CLUE Report

DEFINITION of 'CLUE Report'

A report from the Comprehensive Loss Underwriting Exchange (CLUE) that lists a home’s insurance claims history, if any, for the last seven years. Insurance companies use CLUE reports in determining the premiums to charge for homeowners insurance on a particular property. The report list claim dates, loss types, which insurance company the claim was filed with, whether the claim was denied or approved and, if approved, how much was paid. Some insurance companies don’t report to CLUE, so any claims filed with those companies won’t appear on a report. Homeowners can order one free CLUE report each year.

BREAKING DOWN 'CLUE Report'

Each insurance company has its own rules for determining premiums, subject to state regulations, but a property’s claims history will definitely influence those premiums. Some items that might appear on a CLUE report can actually be positive, such as a recently replaced roof due to hail damage.

Homebuyers can use a property’s CLUE report to get a sense of whether a property they’re considering might have hidden problems that could be expensive to repair (which a home inspector may be able to evaluate further) or whether it might be difficult or expensive to insure the home. A potential buyer could learn whether the property has prior fire or flood damage or whether it has been burglarized more than once—a possible reason to walk away and look for a safer home.

Only homeowners and insurers can order a property’s CLUE report from LexisNexis. Home sellers can order a special version of the report called a CLUE Home Seller’s Disclosure Report that shows a five-year loss history for the property but safeguards the property owner’s personal information. This report, if it shows no losses, can give potential buyers peace of mind and make it easier to sell the home.

A CLUE report contains both the home’s history of claims and the owner’s personal record of claims. Insurers use both to set premiums and determine coverage levels or in some cases to deny insurance. If you are denied, the insurer must tell you why. Insurers use a claims history to predict the risk of future claims, which is shown to be higher when claims have been filed before. Some insurers offer claim-free discounts.

A homeowner’s credit score will also affect homeowners insurance premiums, because people with poorer credit are more likely to file a claim. The home’s location, age and construction type also affect premiums. If your report contains any errors, getting them corrected could save you money in the long-run.