CLUE Reports And How They Effect You

One of the biggest issues for buyers and sellers today seems to be overall rise in homeowners insurance, especially in the aftermath of recent natural disasters, like Hurricane Katrina. People are looking for ways to reduce these costs, and we’re getting a number of questions about CLUE Reports, and how they are being used by insurance companies.

What are CLUE reports? It is a report from the Comprehensive Loss Underwriting Exchange, which used by the insurance industry. Underwriters look at a property’s clue report because it lists all of the insurance claims that have been filed against that property over the past 3 to 5 years. Depending on the number of claims filed on the report, an underwriter may determine that a home is more or less risky to insure. Some people have seen their premiums go up significantly after the CLUE report was evaluated by the underwriter.

This is really something buyers and sellers need to be aware of – it’s a national issue and everyone is affected one way or another. Hear more about CLUE reports on our February Podcast.