Your claims history is a vital factor that insurance companies use to determine the amount of money you’ll pay for home and auto insurance. A comprehensive loss underwriting exchange (CLUE) report provides information about the policyholder’s past claims, such as those related to fire or storm damage or if the car was in an accident.
What’s a CLUE report, and how does it work?
A CLUE report is a vital factor that insurance companies use to determine how much you’ll pay for home and auto insurance. It compiles information about a person’s past claims from the past 5-7 years, regardless of how small they are. The two types of CLUE reports are for home and auto insurance claims.
Before you buy a home, it’s important that you get a CLUE report to help you understand what to expect when it comes to homeowners insurance.
Buyers can benefit from a CLUE report, as it can help them identify potential hidden problems or issues that need to be fixed before they purchase a home. However, repeated claims or large payouts could be a red flag for potential buyers, as these can suggest that the property is prone to costly repairs. On the other hand, a positive report can provide insight into the positive aspects of the home, as it can help reassure the prospective buyer that the areas are in good condition.
How is it generated?
Although it’s only allowed for insurance providers and homeowners to request a copy of a CLUE report, you can also request a copy from a home seller to learn about the property’s history. Most insurance companies provide information about their past claims to the database maintained by LexisNexis, which is a research firm. For instance, when a homeowner files a claim for fire damage or water damage, most of the reports that the insurance company provides are in the database.
Insurance companies can use the information collected from the report to set the premium that they’ll charge for your home insurance. While past claims from the prior owners of the home shouldn’t affect the amount of money that you’ll pay for your policy, past claims you’ve made might. This is because if you’ve made claims in the past, you’ll be likely to do so in the future.
How do I get a copy of my CLUE report?
The Fair Credit Reporting Act allows people to get a free copy of a report from LexisNexis once a year. To access it, you can request a copy of a report online, by calling the company, or by sending an email to LexisNexis.
Suppose you’re planning on selling your home. In that case, you should have a copy of a report that contains a comprehensive analysis of your insurance coverage, especially if it’s blank due to not filing any previous claims. Even if you’re not actively marketing your property, you should still get a report to check for inaccuracies, as that can impact your insurance rate as well.