What are CLUE reports in insurance?
Key takeaways
- A CLUE report contains details about home or vehicle insurance claims made in the past.
- Reported information includes the policyholder’s name and date of birth, policy number, type of claim filed, claim status (open or resolved) and payout amount (if applicable).
- A CLUE report does not include information about evictions, credit or criminal or civil records.
A Comprehensive Loss Underwriting Exchange report — commonly called a CLUE report — details personal property and auto insurance claims dating back up to seven years. When you’re shopping for a new insurance policy, insurers will likely request a CLUE report to view your claims history. But in some cases, you may want to request one for yourself.
What is a CLUE report and how does it work?
CLUE reports, generated by consumer reporting agency LexisNexis, detail the insurance history of a location or vehicle. The report contains details about any reported insurance claims made in the past, no matter how small. There are two types of CLUE reports: one for home insurance claims and one for auto insurance claims.
Requesting a CLUE report before buying a home or car will help you know what to expect when applying for insurance coverage. While the claims of prior owners should not affect your premium, knowing what claims were previously filed on the home or automobile can help you, as a potential buyer, determine if there might be hidden damage that needs to be addressed before closing on the purchase.
For example, homes with a history of large claim payouts or repeated claims could be a red flag for prospective buyers, indicating that the property is prone to damage. Similarly, a car that’s been involved in multiple accidents may be an issue for some drivers. However, CLUE reports can also provide positive news. If a claim payout funded a roof replacement after a natural disaster or a new bumper after a fender bender, the prospective buyer may be reassured that those areas of the home or car are in good condition for years to come.
How is a CLUE report generated?
Most home and car insurance companies regularly submit claims information to the CLUE database, which is maintained by LexisNexis. For instance, when a homeowner files an insurance claim for an incident like fire damage or criminal activity, most insurance reports are entered into the CLUE database. The same applies to cars — if someone files a claim, it’s bound to show up in a CLUE report.
What’s in an insurance CLUE report?
Whether it is pulled by an insurer as part of the underwriting process or you request your own CLUE report, it should include the following for all home and auto claims that have been filed:
- Name of the insurance company
- Date of any losses and claims
- The type of loss — fire, wind damage, etc.
- Whether or not the claim was denied
- If the claim was not denied, the amount that the insurer paid out
- Insurance policy number and claim number
The report will not include specifics, such as what part of the house was damaged. But if you are buying a house, it should give you enough information to ask the homeowner to explain the details. CLUE reports also typically include the property address and information pertaining to the policyholder like their name and policy number.
What if a CLUE report is blank?
CLUE reports typically provide home and auto buyers with useful information regarding a property’s or vehicle’s claims history. However, you may find that a CLUE report is blank. Though a blank report can cause confusion or concern, it actually indicates one of two things:
- The owner did not make any insurance claims in the past seven years.
- The home or vehicle was covered by an insurance company that does not report claims to LexisNexis.
Claims listed on CLUE reports cover any past events. Occasionally, you will find that no claims have been made. However, a blank CLUE report does not necessarily mean that no damage occurred but simply that no insurance claim was filed. The owner may have taken care of the damage out of pocket rather than filing a claim.
How to get your own CLUE report
Thanks to the Federal Fair and Accurate Credit Transactions Act (FACT Act), you can get one free CLUE report for your home or vehicle once a year from LexisNexis. To gain access to a CLUE report, you can:
- Request a CLUE report online
- Contact LexisNexis by calling 866-312-8076
- Request a report by emailing consumer.documents@lexisnexisrisk.com
- Request a copy from a homeowner (if you are a potential homebuyer)
- Request a copy from a car owner (if you are shopping for a new-to-you vehicle)
Why should you request a CLUE report?
Requesting an insurance CLUE report can potentially help you save money on your policy or avoid buying problematic property. Here are a few situations when reviewing a CLUE report might come in handy:
- Shopping for insurance: It can be helpful to check your CLUE report before shopping for insurance. Occasionally, a CLUE report may include inaccurate information, especially for people with common names. For instance, you may find a claim on your report that, in reality, should be listed on someone else’s report. Incorrectly listed claims can drastically impact your insurance rates, and ordering a CLUE ahead of time will allow you to dispute inaccuracies with LexisNexis before shopping.
- Assessing your own home: Showing a blank CLUE report to a potential buyer can be a powerful tool for making a sale. After all, a buyer may be more confident in the quality of your property if it is claims-free. If you are the one buying a home, you could use the CLUE report to decide if you should purchase additional coverage if a substantial claim for a covered loss was made in the past.
- Shopping for a home or vehicle: Repeat claims on a CLUE report could indicate future risk for similar claims or potential defects. A house with repeated claims due to pipes bursting in the walls may be a concern, for example. Or a vehicle with several claims may have unaddressed underlying damage.
- Insurance policy renewals: If you’re hit with a steep rate raise for your home or auto insurance policy, you may want to review your CLUE report for inaccuracies. If there’s something up with your report, you can file a CLUE report dispute.
How do CLUE reports affect your homeowners insurance?
A CLUE report may have a positive or negative impact on your home insurance premium. Because most insurance companies report to LexisNexis, you can be fairly certain that the report is a good indicator of the “health” of your home.
Each insurer will have its own methodology for determining rates, so it can help to know how different CLUE report outcomes can affect your premium. Additionally, some insurers may look at the entire claims history, while others may only consider the last three years. If you have made a claim for damage from a hurricane or windstorm, for example, insurers may assume there is a better-than-average chance that you will do so again. To account for that likelihood, they may increase your premium. Theft and vandalism claims that show up on your report can also negatively impact your rate.
How a CLUE report can help sell your house
With a CLUE report, home disasters or mishaps in the past could come to light, but the report should not be the only way you assess risk or damage. Potential buyers may be able to discuss a property’s CLUE report findings with the home inspector so that the inspector can make sure the work was done correctly.
It is worth noting that a CLUE report does not take the place of a home inspection, as it lacks the details that allow you to pinpoint exactly where problems might arise. A home inspection is considerably more thorough and provides additional information beyond what a CLUE report offers.
A CLUE report does not give a score or offer recommendations. It simply tells what insurance claims have been filed in recent years. It does not take the place of disclosures from the seller, either.
Frequently asked questions
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Claims on a CLUE report typically date back up to seven years.
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A CLUE report does not include credit reports, civil records, criminal records or eviction notices.
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You can submit your application for a CLUE report electronically, but to view the report online, you need to wait for the letter from LexisNexis that provides access information.
