A Comprehensive Loss Underwriting Exchange Report, or a CLUE Report, is a voluntarily exchange of information between insurance companies revealing information about a customer and their trends. In short, it is a way for an insurance company to identify the risk of taking on a customer based on claims that were made in the past. Typically, within the past 10 years. As with most professions there are tools that are used to disclose your personal information. Many mortgage companies use a beacon score, car dealerships use CARFAX and insurance companies use a CLUE Report.
For instance, I have a tree in my yard that got struck by lightning. I called my insurance agent to see if I would be covered under my insurance to have the tree removed. He suggested that I call an insurance adjuster. Once I called the adjuster I had “made a claim”. Although I wasn’t even sure I wanted to collect money to cover the expense of the tree removal…I inadvertently made a claim just by leaving a message on a voicemail inquiring about my policy. This information is the kind of information that will show up on the report even though it wasn’t disclosed to me that my personal information would be dispersed into a national database.
On the otherhand there is a positive side to this report. Let’s say that there was a major flood or a fire in a home. The homeowner makes a claim, collects the money, and decides that they can do it themselves without pulling permits or getting inspections. A year later they lose their home in foreclosure and their DIY workmanship is passed on to the next buyer. A CLUE Report should state the significance of the claim and the amount of damage that was done. So when the next buyer comes into the house and smells mildew or smoke, they could obtain a CLUE Report to investigate the home a little closer. This is especially important to make sure that there is no mold, mildew, fungus and/or hazardous bacteria in the home.
So when you are buying a new home ask your insurance agent to pull a CLUE report so that you know the entire story. In South Carolina, by law, almost every seller is required to fill out a Property Disclosure Form to disclose known defects about their home so a CLUE report may not be as significant unless it is corporate owned or a foreclosed home.