Why is the CLUE report important?


The Comprehensive Loss Underwriting Exchange (CLUE) report provides information to insurance companies about the claim history of prospective home insurance buyers. Insurance providers make use of CLUE reports for underwriting and risk assessment purposes. So if you are looking to buy a new home or sell your existing one, you should check your CLUE report - you may be surprised by the information it contains.

CLUE reports are crucial to the insurability of your home: compiled by CheckPoint on order of insurance companies, it contains detailed information on the prior claim history of a home and the claim record of a prospective buyer of Homeowners insurance.

CLUE is a database all insurance providers share and use to assess the risks of loss that each particular home is exposed to. It contains information about all the property insurance claims made in the past five years, including the date and type of loss, and the amounts of damages paid.

Why It Is Important to Check Your CLUE Report

Few people are aware of the problems that CLUE reports can cause. Imagine you are about to buy a home but you are not aware that the previous owner has filed a home insurance claim within the past five years. Not knowing about the claim history of a home can result in you not being able to buy affordable - or even any - protection for your prospective home.

Similarly, you may find it impossible to sell your current property if you have made even a minor home insurance claim in the past five years. All this will be recorded in your CLUE report and may result in putting off prospective buyers. CLUE reports often erroneously show home insurance claims on record, even if a home owner has only inquired about the possibility of filing a claim.

Your CLUE report is not publicly available unless you order it. Under the Fair Credit Reporting Act, you have the right to obtain one free copy of your CLUE report every year.

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