CLUE Report

What Is a CLUE Report?

The Comprehensive Loss Underwriting Exchange (CLUE) report subtleties a seven-year period of personal auto and property claims. Insurance companies use CLUE reports, created by LexisNexis, in the underwriting system and to decide premiums. The report incorporates the insured's personal data, policy number, type and date of loss, claim status, amount paid, and insured property or vehicle data.

CLUE Report Explained

Insurance companies have specific rules for deciding rates, and claims' history is one affecting factor. A few things showing up on a CLUE report can both positively or negatively influence the rating. For instance, a rooftop supplanted due to hail damage can adversely influence a rating in light of the fact that the claim fills in as an indicator of an insurer's future liability. On the positive side, another rooftop diminishes the risk associated with underwriting insurance on the home. Whether the positive benefit overrides or offsets the negative relies upon the insurer.

Homebuyers utilize a property's CLUE report to distinguish issues, which can compromise their ability to get insurance for the home or safeguard it for a reasonable cost. For instance, the CLUE report could recognize assuming the property had fire or flood damage or had been the survivor of robbery. The data from a CLUE report engages the buyer to settle on an educated conclusion about their purchase.

Getting a Copy of a CLUE Report

Just homeowners and insurers can order CLUE reports. Sellers can order a special rendition called a CLUE Home Seller's Disclosure Report, which shields the proprietor's personal data and shows a five-year loss history for the property. A report without any losses offers potential buyers peace of brain and traits credibility to the seller. Under the Fair Credit Reporting Act (FCRA), a free copy of the CLUE or CLUE Home Seller's Disclosure report can be mentioned yearly. To challenge data on the summary, consumers ought to file a dispute with LexisNexis. Mistaken data could negatively impact insurance rates.

A CLUE report contains both a home's history of claims and the individual proprietor's record of filed claims. Insurance suppliers utilize this data to set payments, decide coverage levels, or, at times, deny insurance. Whenever denied, the insurance company must make sense of the explanation. Insurers use claims history to anticipate the risk of future claims, which will in general be higher when previous claims were filed. As an incentive to the insured and to reduce risk, a few insurers offer claim-free discounts.

A mortgage holder's credit score can likewise influence homeowners insurance premiums. Many studies show that individuals with compromised credit are bound to file insurance claims than individuals with fair or great credit. Likewise, the home's location, age, and construction type will influence premiums.