What is a C.L.U.E. Report?
When selling or buying a home, a C.L.U.E Report may be of value. A C.L.U.E. report is a report generated by LexisNexis®, a consumer reporting agency. C.L.U.E. stands for Comprehensive Loss Underwriting Exchange. A C.L.U.E. report contains information from insurance companies regarding claims filed and/or paid against a personal property for the past five to seven years, without divulging personal information about the property owner. When a new buyer requests a quote for homeowner’s insurance, the insurance company could request a C.L.U.E. report prior to providing an estimate.
What’s In a C.L.U.E Report?
The information included in a C.L.U.E. report is the homeowners name and birth date, insurance policy number, dates of losses, types of losses, payments made by the insurance company, a description of the covered property, and the property address. Insurance companies do not report inquires, but they do report cases in which they set up a file for potential claim, formally deny a claim, or pay out on a claim that was made.
When claims are filed against a property, property insurance costs may increase, or coverage could be denied or difficult to obtain. Not only may the cost of insurance increase, but a report with claims filed could also indicate problems with the property, warding off potential buyers. Savvy sellers will obtain a copy of their C.L.U.E. report at the time the property is listed to provide assurance to potential buyers. Potential buyers would be wise to request a copy of the C.L.U.E. report as a contingency with an offer. A C.L.U.E. report is beneficial to the buyer and the seller in a real estate transaction.
When a property has experienced an accumulation of claims, insurance companies could opt out of providing insurance, or may charge higher rates. This consequence affects the buyer of the property, whose over-all monthly housing expenses could be increased, or who may have trouble obtaining homeowners insurance.
Homeowners, prior to listing their property for sale, can obtain a free copy of their C.L.U.E. report as mandated by the Fair Credit Reporting Act. By securing a copy of your C.L.U.E. report before selling your house, you have an opportunity to modify any incorrect information, and can also add a note or brief explanation to a specific item or items that will show in future reports. To obtain a copy of your C.L.U.E. report, contact the consumer center at LexisNexis® at 888-312-8076. You can request corrections to your report or to note an explanation by calling 888-497-0011. You can also visit LexisNexis® online at http://www.LexisNexis.com.
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