So What's a CLUE Report

By
Real Estate Broker/Owner with RE/MAX Action Real Estate

If you are a homeowner you might want to be aware that filing an insurance claim for damage to your home could one day impact your ability to sell your property. 

Insurance claims on homes now may be submitted to a 10-year old database called the Comprehensive Loss Underwriting Exchange Property Database (CLUE).  Information on past claims is available for insurers who are looking to write policy on homes. Information on a CLUE Report might give an insurer reason to not issue a policy on a home or to insure it at a higher rate.

Imagine your home suffers water damage from a broken pipe and you file an insurance claim and have your home repaired.  You may not have to disclose repaired damage to a future homebuyer but it more than likely will show up when that buyer's insurance company runs a CLUE Report.

Even if the insurance company is fine with information from the report, you may have an issue with a homebuyer who suddenly is nervous that the home they are buying had previous damage.

Claims that raise red flags to insurance companies are those from water damage due to issues relating to mold.

Reporting a claim is voluntary for insurance companies but if you are selling a home and have made a claim within the past five years it might be a good idea to find out what is on your CLUE Report.  Homeowners can access a free CLUE Report on their home by going to www.choicetrust.com. 

If you are a buyer it also might be a good idea to ask the home seller for a CLUE Report on the home.  For Realtors, buyers and sellers looking at CLUE Reports up front will only save a lot of time and aggravation.

Buyers also need to be concerned about CLUE Reports because they show claims that an individual has made on previous homes.  If you have made several claims and those show up on a CLUE Report you may not be able to obtain insurance or it may cost you more.

Homeowners might want to think twice before they make future claims for "trivial" items.  Maybe the cost of fixing the damage yourself might be cheaper than calling your insurance company.

Comments (5)

Terry Osburn
BHHS|Drysdale Properties - Pleasant Hill, CA
Broker Associate

Insurance both homeowners and health insurance both needs an overhaul. I can certainly understand why in some instances there are those who abuse the system that would make the insurance industry balk but if they have a good claims and fraud dept to really investigate what happened they could eliminate some of their losses.

Really, what is the point anymore? You receive a policy and it tells you it covers such and such and then you submit a claim and your cancelled.

Frankly they need to issue policies and state for catastrophic disasters only don't bother us if a busted water pipe causes you thousands of dollars.....

Don't me get me started on healthcare insurance. I worked for 30+ yrs in the medical field.

 

 

Oct 10, 2007 03:37 AM
Keith Stoller
Keith Stoller Tax & Business Solutions - Bakersfield, CA
Great info for reference.  I purchased a home several years ago that had two water claims but I went through the same local agent and it worked out.  After one year they dropped my rates.  Relationship actually can help if you go with an independent.  Still, one gets a little frustrated....
Oct 10, 2007 03:39 AM
Chris and Berna Sloan
Group 1 Real Estate - Tooele, UT
Tooele UT

Gary... Good info, I actually learned the hard way.  Bought a home that had more than a few previous claims.

I could not believe that that could affect my raytes, but it can.

Oct 10, 2007 03:53 AM
The All Pro Team
EXIT Realty Leaders - Crystal River, FL
Gary, I bought a home and found out a few  things after closing.  1) the home had flooded 16 inches in 93 and 2) after a year of living in it we found out there was a sinkhole that someone had already tried to fill in.  I was not in Real Estate when I bought the house but when I got into the business I pulled a clue report, nothing showed up on it!  I think we need to be careful!!
Oct 10, 2007 06:19 AM
Gary Duda
RE/MAX Action Real Estate - Richmond, VA

Reporting to CLUE is still voluntary and events from 1993 would not have made it.  These days the CLUE reports are surprisingly accurate for recent claims.

Sorry that happen to you.  Did you have the house inspected?

Oct 10, 2007 06:23 AM