What is a CLUE Report or History Loss Statement?

What is a CLUE Report or History Loss Statement?

A CLUE report, generated by LexisNexis (a consumer reporting agency that maintains a large database of consumer claims submitted by insurance companies) details homeowners insurance claims made on a property within the past seven years. Insurance companies use these reports to help determine the cost of homeowners insurance based on the property’s claims history, among other criteria.

Why Should Homebuyers Care About CLUE Reports?

CLUE reports can reveal potential problems with a property, such as water damage, foundation issues, or mold. Knowing about these past issues can help you anticipate future maintenance needs and potential insurance costs. For instance, multiple claims for water damage might suggest recurring issues that could lead to mold, which might increase your homeowners insurance premiums.

What Information is Included in a CLUE Report?

A CLUE report includes the homeowner’s name, personal details, policy number, date of claims, types of loss, and the amounts paid by the insurance company for each claim. It may also contain general information about insurance providers and the nature of the claims.

How to Access a CLUE Report

Homeowners can obtain a copy of their property’s CLUE report for free once every 12 months, thanks to the Fair Credit Reporting Act. They can request this report from LexisNexis by calling 1-866-312-8076 or visiting www.consumer.risk.lexisnexis.com.

As a buyer, you cannot directly access a CLUE report for a property you’re interested in. However, you can ask the seller to provide it or make your offer contingent on receiving a satisfactory CLUE report. Additionally, when you apply for homeowners insurance, the insurance company will pull a CLUE report on the property so you will know about the claims history.

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