What is a CLUE (Comprehensive Loss Underwriting Exchange) Report? Here’s What You Need to Know

Key takeaways:

• A CLUE report is a record of a property’s insurance claims history.
• Both buyers and sellers can benefit from understanding a CLUE report.
• Reviewing a CLUE report can help avoid potential issues and surprises during a real estate transaction.

Whether you’re looking to list your home for sale in Omaha, or you’d like more information on the home you’re planning to buy in Nashville, understanding a CLUE report is crucial for both home buyers and sellers. 

This report, while only immediately accessible by sellers, provides a detailed history of insurance claims associated with a property, offering insights into potential issues or risks. In this Redfin article, we’ll explore what a CLUE report is, how buyers can request it, and other useful information for a more transparent and informed real estate transaction.

What is a CLUE report?

A Comprehensive Loss Underwriting Exchange (CLUE) report is a document that contains information about insurance claims made on a property within the past seven years. This report is used by insurance companies during the underwriting process to assess risk and determine insurance premiums. It includes details about the date of the claim, type of loss, and amount paid by the insurer.

What do CLUE reports include?

• Date of the claim.
• Type of loss (e.g., water damage, theft, fire).
• Amount paid by the insurance company.
• Policy number associated with the claim.
• Property address.
• Name of the insured at the time of the claim.

Explore a sample CLUE report here.

When should you ask for a report?

Both buyers and sellers should consider reviewing a CLUE report. Sellers can proactively provide it to potential buyers to build trust and transparency. Buyers should request a CLUE report during the due diligence period before finalizing a home purchase. It can be obtained from LexisNexis, the company that maintains the CLUE database.

How to interpret a CLUE report as a seller vs buyer?

As a seller, reviewing your property’s CLUE report allows you to identify any past issues that may need addressing before listing. Disclosing any prior claims upfront can streamline the selling process.

As a buyer, a CLUE report provides insight into potential problems with the property. It helps you assess risks and negotiate accordingly. For example, multiple water damage claims might suggest recurring plumbing issues that warrant further inspection.

Your Redfin agent can help you navigate analyzing the report:

Navigating the complexities of a CLUE report can be daunting, whether you’re buying or selling a home. A Redfin real estate agent brings local expertise and a deep understanding of real estate transactions to the table. They can help you interpret CLUE reports, address any concerns that arise, and guide you through the process to ensure a smooth and confident transaction. 

Frequently asked questions:

Q: What if there are inaccuracies in the CLUE report?

A: If you find inaccuracies, you can dispute them with LexisNexis. Provide supporting documentation to correct the errors.

Q: How far back do CLUE reports go?

A: CLUE reports typically include insurance claims from the past seven years.

Q: Can a CLUE report affect my insurance premiums?

A: Yes, the claims history in a CLUE report can influence insurance premiums. Properties with a history of frequent or significant claims may result in higher premiums.

Q: Is it mandatory to provide a CLUE report during a real estate transaction?

A: It’s not always mandatory, but it’s beneficial for both parties to be informed. Providing or requesting a CLUE report enhances transparency and trust.

Q: Where can I get a CLUE report?

A: You can request a CLUE report from LexisNexis Consumer Center.

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