Did You Know Your Insurance Claims Aren’t Secret?
Have you ever wondered whether your insurance claims remain private? The short answer is: no, they don't. Learn what information is available to insurers through a CLUE report, how to get one, and how it impacts your insurance.
What Is a CLUE Report?
A Comprehensive Loss Underwriting Exchange (CLUE) report records insurance losses. Home and auto insurers report claims history data to the CLUE database. Reports from this database cover the past five years and include all claims filed. Additionally, your CLUE report covers your personal history of insurance claims, the amount paid out for each claim, and whether an insurer denied any claims.1
You can request a copy of your CLUE report or the report of a home you wish to purchase to better understand your premiums and what you can expect to pay moving forward.2
What Information Does a CLUE Report Include?
Insurance companies provide the following details when you file a claim:
- Insurance company
- Date of losses and claims filing
- Loss types, such as wind damage or fire
- Outcome of paid or denied claim
- Amount paid, if applicable
- Insurance policy number
- Claim number
No other data (e.g., regarding civil lawsuits, credit reports, or legal judgments) go into the CLUE. Also, you may have a blank CLUE report if you haven't filed any claims within the past seven years or if your insurance company doesn't report to CLUE.1
How to Get and Fix Your CLUE
According to the Fair Credit Reporting Act, every consumer can request one free CLUE report for their property per year. Request your CLUE report online from LexisNexis, an information reporting company. Only the homeowner can request a CLUE report, so you'll need to ask the homeowner to provide the report if you are a prospective buyer. Sellers often request a CLUE report and make it available to prospective buyers as a matter of good faith.
If you plan on buying home insurance, this is good information to have because the report can influence your premium. Obtaining your CLUE report also allows you to fix inaccurate data.
How Does a CLUE Report Influence Your Premium?
Most insurance companies report to LexisNexis. You can call your insurer or ask your insurance professional whether your policy does this. The CLUE report tells insurers about the risks associated with insuring your home based on your claims record. Previous claims due to weather or other covered events and disasters tell the insurer a lot about what may occur in the future.1,2
For example, if you previously made a claim for a windstorm or hurricane, there's a good chance you will have similar claims in the future. Unfortunately, though it's beyond your control, this may increase your premiums. Obtaining your CLUE report can help you understand how even small claims can impact your insurance.
Every insurer has its own underwriting procedures and methods for coming up with premiums. Your agent can help you understand the impact of CLUE on your specific policy.
A CLUE report reveals your claims history to insurers. This can impact the rate you pay for your premium and influence potential buyers if you plan to sell your home. There's good news, too. If you have a blank CLUE report, indicating no insurance claims in the past few years, this can positively influence your premium obligation.
A blank or favorable CLUE report signals that your home has no known vulnerabilities that pose a high risk to insurers. Consider obtaining, reviewing, and fixing any discrepancies in your own report to positively influence your premium.
1. NACHI.org, 2022
2. III.org, 2022