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November 6th, 2017
When making a large purchase, such as buying a car or home, options like Carfax and credit reports are readily available. Another resource for homeowners is the Comprehensive Loss Underwriting Exchange (CLUE), but many do not realize it’s available, or how much underwriters rely on this information.
CLUE reports provide information that underwriters use to rate and determine eligibility for homeowner policies. CLUE reports are not tied to credit scores or a secret database. CLUE reports list claims that have been reported to an insurance carrier inside and outside of the home.
As a potential homebuyer, requesting a CLUE for a new property is a smart step. Your inspector uses this information to verify proper repairs have been made.
Claims often indicate physical issues with a home that may affect premiums. For example, a home that has several water losses and has not been re-piped may have to secure insurance coverage from a non-admitted carrier. But a CLUE report may also have a positive impact if the damage was repaired properly. If a roof was damaged due to the wind and the homeowner replaced the entire roof, the home, with its new roof, would be more desirable to an underwriter.
The majority of personal line carriers subscribe to a consumer reporting agency product provided by LexisNexis Risk Solutions. LexisNexis provides dates of claims, loss amounts, total amounts paid for losses, and if a claim was denied. These go back seven years.
Common losses listed on the report include water, fire, and CAT (catastrophic losses from an earthquake or hurricane). This service does not provide details, so it is up to the homeowner to fill in the details or verify any mistakes.
Important to note, a CLUE report does not replace a home inspection. It is an additional tool underwriters use to evaluate a risk and rate for proper premium.
Now that you have a CLUE, you can use this tool when selling your home, buying a new home, or simply having a better understanding of what affects your homeowner’s premium.