The CLUE Report: The Insurance History You Did Not Know Existed

Most buyers have never heard of the CLUE report until an insurance agent mentions it, and by then the deal is usually far enough along that it's too late to do anything useful with the information. That's a shame, because a CLUE report is one of the best ways to find out whether a house is hiding an expensive insurance history, the kind that can make it hard or impossible to get affordable coverage after you buy.

What CLUE Is

CLUE stands for Comprehensive Loss Underwriting Exchange. It's a database, maintained by LexisNexis, that tracks insurance claims on properties and individuals in the United States. Most major insurance carriers report claims to CLUE. When you apply for a new homeowners policy, the insurer pulls a CLUE report and uses it to assess risk and set your rate.

The report typically covers the last five to seven years of claim activity. It shows the date of each claim, the type of loss (water, fire, wind, theft, liability), the amount paid out, and whether the claim is still open.

Why It Matters When You're Buying