Consumer Advice

What You Need to Know About C.L.U.E. when Buying Homeowners’ Insurance

When buying a home, the lender checks your credit report and credit score to see how you’ve paid your bills in the past.

But did you know that when you buy homeowner’s insurance, insurance companies also run their own credit report (on you)? And in addition, there is a shared database among insurance companies called C.L.U.E. – or Comprehensive Loss Underwriting Exchange – which keeps a 5-year history of every insurance home.

What it is supposed to do is report the history of the property itself for past claims – claims paid to the seller of the property or claims paid to you if you’ve owned the home.

Here’s the thing. Claims tend to be driven by issues such as structural defects. The age of the home. The location. Weather related claims. Age of roof. Crime areas.

If you are buying a home, consider checking the insurance rates and getting a CLUE report. While you can’t ask the insurance company to pull the report for you, you can request that the seller of the home provide the report. Even if you were not responsible for the claims, the premium may be higher based on the “claim history” of the property.

If you want to change insurance companies, remember that OTHER insurance companies have access to your claim history too. The usual reason to seek a new company is because the insurance premiums have increased substantially. Or they have increased because of a claim that they paid you.

You may be surprised that the other insurance premium may even be higher! Since it’s your home, ask for a CLUE report and find out how each claim affected the premium you are paying for insurance.

If you are looking for an insurance agent, please email me. I’d be happy to recommend a few that I have worked with in the past.

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