CLUE Reports (Comprehensive Loss Underwriting Exchange) contain detailed information regarding claims on a particular property within the past seven years. These claims reports are generated by a consumer reporting agency called LexisNexis. This agency maintains a comprehensive database of consumer claims information submitted by insurance companies that help insurers when they're underwriting a policy.
CLUE Reports include the homeowner's name, personal details, and policy number, and, if a claim was made, the date, type of loss, and the amount the insurance company paid the policyholder for a claim.
Homeowners can access a copy of their property's CLUE report for free. The Fair Credit Reporting Act allows homeowners to request a copy of their CLUE report from LexisNexis by calling 1-866-312-8076 or by visiting consumer.risk.lexisnexis.com. Homeowners can request a free CLUE report once every 12 months.
A homeowner looking to sell their home might be wise to look at their CLUE report to understand how past claims may affect the sale of their home. Some buyers may perceive a property more favorably if it has a “clean” report. Discussing claims in a report also gives sellers a chance to be forthcoming about any improvements they’ve made to the home, such as replacing drain pipes or roof repairs. Sellers also have the opportunity to dispute any incorrect information in their report before putting their house on the market. Correcting CLUE report errors in advance may help facilitate a smoother sales process later.
A buyer looking to purchase a home may find it useful to request a copy of the CLUE report from the seller. A homebuyer may be encouraged if the homeowner can confirm that they’ve made few or no claims on their home insurance. Conversely, a report with multiple claims could help prepare a buyer for any potential issues that may come up during a home inspection.
Bottom line: Don’t be clueless! It is always important to know what are on reports, whether it is your credit report or a CLUE Report.
