You may not realize it, but insurance companies have a shared database that they use to determine what kind of risks that you, and your property, present to their business. This database is called the Comprehensive Loss Underwriting Exchange, also known as C.L.U.E.
Just as a credit report will follow a consumer around all their life, a CLUE report is attached to a home for the duration of its existence. As a consumer, you also have a CLUE report that tracks your insurance claim history for both home and auto coverage.
According to industry data producer Lexis Nexis, insurers utilize personal information in the CLUE report to decide your risk profile – specifically, how likely you are to file a claim against your policy. Your CLUE file contains information such as your name, date of birth, policy types, policy numbers, and claim histories. For homeowner’s coverage, the CLUE report also contains the property address. (For auto coverage, it includes specific vehicle information.)
Under the Fair Credit Reporting Act, consumers are entitled to a free copy of their CLUE report. Request your CLUE report online, or call 1-866-312-8076. Similar to credit reports, you have the right to dispute any inaccurate data in your CLUE report.
It’s a good idea to verify the accuracy of your property’s CLUE report before you sell your home. The CLUE Home Seller’s Report only shows the past 5 years of record, but it can still provide proof that there have been no reported claims against your property. If there are any claims on record for the past 5 years, the CLUE report will detail them. This enables you to provide your home buyers a factual disclosure about any recent liability claims or property damage claims.
Home buyers may ask for a property’s CLUE report as part of their purchase offer contingencies. While not all home buyers ask for a CLUE report, here’s why more should: a home with a record of prior claims will be more expensive to insure.
Need more information about homeowner’s insurance? Check out the Tips & Guides at the Illinois Department of Insurance website. You can also ask us for referral to reputable insurance agents in the Chicago area!
StartingPoint Realty – serving first-time home buyers since 2004!
StartingPoint Realty proudly serves first-time home buyers throughout Chicago and the Northwest suburbs. Get an introduction to home buying by attending our free home buying seminar! There’s no sales pressure and no obligation. Space is limited, so please register your choice of location and date to reserve your seat!
Always feel welcome to contact us for help with your Chicago home buying questions!
Ryan Gable Broker/CEO Starting Point Realty
Become a StartingPoint Realty Facebook Fan
Follow StartingPoint Realty on Twitter