CLUE Report Explained: Insurance Impact, Real Estate Use, and How to Get One

Absolutely. If the report reveals a history of significant fire damage or multiple roof claims that the seller didn’t disclose, you can use that information to ask for a price reduction or a “seller credit” to cover higher future insurance premiums.

Yes. Even if you called your agent to inquire about damage but decided not to file a formal claim, it might still show up as an “inquiry” or a “$0 claim.” Some insurers view these inquiries as a sign of potential future risk.

Both. A clue report tracks claims made by an individual across different properties and claims made on a specific property by different owners. Lenders and insurers look at both to determine if you are a “risky” borrower or if the house itself is a “risky” asset.

Under the Fair Credit Reporting Act, you are entitled to one free copy of your property’s report every 12 months. You can request it directly from the LexisNexis Personal Reports website.

If you find a claim that isn’t yours or an incorrect payout amount, you have the right to dispute it. You can contact LexisNexis directly to provide documentation—such as a letter from your insurer—to have the record corrected.

Most insurance companies report data to the comprehensive loss underwriting exchange within 30 to 60 days of a claim being opened or closed.

The biggest caveat is that the report only shows claims filed through insurance companies that participate in the exchange. If a previous owner paid for a major repair “out of pocket” to avoid an insurance hike, that damage will not appear on the clue report real estate history.

The report lists the name of the insurance company, the policy number, and the claim number. It details the “peril” (the cause of the damage), whether the claim was denied or paid, and the total cost of the repairs. It does not include information on the physical condition of the home that didn’t result in a claim.

A home inspection is a physical examination of the home’s current state. An insurance clue report is a historical record of past financial claims. You need both to get the full picture; an inspection might find a leak, but the CLUE report will tell you if that leak has caused $50,000 in damage twice in the last five years.

As a buyer, you want to know if the home has a history of recurring issues, like a basement that floods every few years. Since only the homeowner can request the report, you should ask the seller to provide a copy of the clue report as part of your due diligence.