What is a CLUE Report?

A CLUE report is a document that details the insurance claim history of a property. LexisNexis, a risk solutions company, maintains it.
The report typically includes a seven-year history of insurance claims related to a property.
Contents of the Report:
The report lists claims made on a property, including the type of claim (like water damage, fire, theft, etc.), the date of the claim, the amount paid by the insurance company, and the status of the claim.
It may also provide general information about the property and the policy number.

Importance in Real Estate:

For potential homebuyers, a CLUE report offers insight into the property’s history of damages and repairs. This can be a significant factor in decision-making.
It helps assess whether the property has had significant issues, which might indicate potential problems or high insurance costs in the future.

Impact on Home Insurance:

The report can affect home insurance premiums. A history of many or large claims may lead to higher insurance costs.
Conversely, a clean CLUE report can be beneficial in maintaining or achieving favorable insurance rates.

Obtaining a CLUE Report:

Homeowners can request a CLUE report for their property once a year for free.
Homebuyers, however, cannot directly request a CLUE report for a property they are interested in. They must ask the seller or the seller’s agent to provide it.
Legal and Privacy Considerations:
There are privacy laws surrounding the CLUE report. Only the property owner or someone with the owner’s permission can access it.
In some real estate transactions, sellers are encouraged to provide the CLUE report as part of the disclosure process.

Limitations:

The CLUE report only records information about claims made through an insurance company. It will only list repairs or issues that were handled involving insurance.
The accuracy of the report depends on the information reported by insurance companies. If you find inaccurate information — such as incorrect payments or even invalid claims — on your C.L.U.E. report, you can contact LexisNexis and dispute any errors.

Before Filing a Claim:

Be aware that if your insurer reports to the C.L.U.E. database, any claim you file—even those that aren’t paid out—will be recorded. This could impact how insurers evaluate you in the future, even if you don’t receive a payout for the claim.

The CLUE report is a crucial tool in real estate transactions, offering detailed insights into a property’s insurance claim history. It helps buyers understand potential past issues with the property and can influence insurance premiums as well as the decision-making process when purchasing.