What is a CLUE Report for Homeowners Insurance

When determining your home insurance premium, insurance companies consider your history of claims. But how do they know about your previous insurance policies? Your insurance history can be found in a database called C.L.U.E.

Are You Aware of the Contents of Your C.L.U.E. Reports?

Your house, rental, and auto insurance claim history can be found in a C.L.U.E. (Comprehensive Loss Underwriting Exchange) report. LexisNexis Risk Solutions provides this service following the Fair Credit Reporting Act (F.C.R.A.).

LexisNexis Risk Solutions says a C.L.U.E. report gives a seven-year history of automotive and homeowners/renters insurance losses connected with an individual, using underwriting guidelines given out in the F.C.R.A. There is also information such as a policy number, a claim number, and the insurance company's name included."

In addition to the claims paid or denied, there are also files started for possible claims. Even if you never actually submit a claim, your insurance agent may still open up a new claim file based on your phone contact to inquire about a certain type of damage.

In What Ways Does the Clue Report Function?

C.L.U.E. data is compiled in the same way credit reporting companies collect information from your creditors about your credit use and history. The C.L.U.E. database receives daily and weekly claims information from insurance companies. According to a LexisNexis spokeswoman, the service is used by most insurers, but not all of them.

Whenever you apply for a vehicle or home insurance, you're permitting the insurance companies to examine your records with consumer report bureaus. For example, LexisNexis, the company that will generate your C.L.U.E. report, is a reporting agency.

Insurers utilize CLUE data to determine how much they will charge you for insurance. The information in the reports is intended to be as accurate as possible in terms of your history of insurance claims.

Arch Insurance Group regional vice president Stephanie Dunstan adds that you may expect to pay more in premiums and have less coverage if you have a C.L.U.E. record that includes claims. "In reality, some insurance firms may deny the client for coverage" because of prior claims, she notes.

Is it possible to obtain a copy of your own C.L.U.E. report?

As with credit reports, you are entitled to receive your C.L.U.E. reports yearly under the Fair and Accurate Credit Transactions Act (FACT Act). These are items that you may want to purchase on an annual basis.

According to Dunstan, "consumers should verify their C.L.U.E. report periodically to ensure that loss information is accurate" because of the impact it has on insurance pricing and coverage.

Corrections to your reports may take some time, but Dunstan believes doing so guarantees that you have the most acceptable possible coverage options.

Your right to contest any incorrect or incomplete information in your report is unassailable. LexisNexis must cooperate with insurers to remedy any inaccuracies they make, and you should alert them of any issues. LexisNexis must remove the information from your C.L.U.E. report if it cannot verify it with the insurer within 30 days.

It can keep your C.L.U.E. report information that it certifies as accurate for up to seven years after the time it was first reported.

If you see any errors in your C.L.U.E. report, LexisNexis recommends that you contact them and work with the insurance company that gave it to reinvestigate it.

Instructions on How to Get a CLU Report

There are several scenarios in which you are entitled to a free copy of your C.L.U.E. report, including the following: It also applies if your insurance company sends you an "adverse action" notice because of what they found in your report. On the LexisNexis website, there are various reasons why a free report is available.

The C.L.U.E. report can be obtained in three ways:

• You can place an order online and have it delivered to your door for convenience.
• Download the form and follow the instructions to mail it in.
• Alternatively, you can call 866-312-8076 to order the report.

Selling Your House with a C.L.U.E. Report

Getting a C.L.U.E. report on your house can be a helpful selling tool if you haven't filed an insurance claim on it in the last seven years.

There is a sense of security that the house will not develop into a money pit if it has a history of issues. If you're selling your home, prospective buyers will want assurances that it hasn't been damaged by fires, floods, electrical difficulties, termites, sewage backup, or other problems. They can learn more by reading a C.L.U.E. report on the matter.

Before putting your home on the market, check the C.L.U.E. report and seek corrections if necessary.

The C.L.U.E. report can only be requested by the property's owner(s). Prospective purchasers can see no one else's report.