If you're planning to switch insurance providers, or if you're in the market for a new insurance policy, whether it be for a vehicle or a property, you may wonder how insurance companies determine what coverage you'll receive and for how much. For many, how insurance companies function can feel like a mystery. But by taking a closer look at your CLUE report, you might gain a better understanding of what your insurance company is using to evaluate your coverage and if it's even fair. Here's what you need to understand to make use of CLUE reports properly.
What is a CLUE report?
CLUE stands for “Comprehensive Loss Underwriting Exchange.” Therefore, your CLUE report is a report that compiles approximately seven years of your claim history on any homes, rentals, land, and/or vehicles you own. A CLUE report is created by LexisNexis, a consumer reporting agency that uses data and advanced analytics to help its customers make informed decisions and better manage risk. Most insurers submit claim information to the CLUE database on a daily and weekly basis.
What exactly is in a CLUE report?
One helpful way to think of a CLUE report is similar to a credit report. Just like creditors use your credit history to determine your ability to take out a loan, insurance providers use your insurance history to determine what coverage they'll offer you. A CLUE report is like the insurance version of your credit report.
A CLUE report typically includes:
- your name,
- date of birth,
- policy number,
- and key claim information, including:
- the type and date of loss,
- the claim status,
- the amount paid
- and a description of the property covered
For homeowners’ coverage, a CLUE report also includes the property address.
For auto coverage, it includes specific information about your vehicle.
A CLUE report also includes information on claims that were paid, or denied, as well as any open files for potential claims. It does not include credit reports, criminal records, legal judgments, civil lawsuits and only keeps up to seven years of your home and auto claims history.
Who can request my CLUE report?
If your insurance company subscribes to CLUE, they can request access. Don’t worry though — in order for someone to gain access to your information they must first get permission from the company they work for. Any insurance agent can’t just look up your information whenever they want.
Insurance companies use this information when trying to figure out if they want to insure you, and if they do, how much your rate will be.
You can also request a CLUE report if you want the information or if you plan to sell your property and the buyer requests a history of the property. This report would be the “CLUE Home Seller's Disclosure report” which keeps your personal information private and only includes a five-year history.
Why would I need to see a CLUE report before I buy a property?
It’s always good to ask to see a CLUE report before making a home purchase so that you can have a better idea of what your insurance is going to look like once you’ve made that purchase. It can also help you find any potential problems.
For example: if you want to buy a beautiful lakefront house, but you’re not sure if it floods when the rain comes, you could be left mopping up water. The CLUE report could tell you if the property you’re looking to buy had flood damage, and you can use this information to make a more informed decision.
How Do I Get My CLUE Report?
There are a few ways to obtain your CLUE report. The Fair Credit Reporting Act was amended in 2003 by the Fair and Accurate Credit Transactions Act, which allows any insurance holder to request a free CLUE report for their home and auto claims every twelve months. You can also get a free copy of your report if your insurance company sends you an adverse action letter. As well as if your policy is canceled or your rates are raised by your insurance company.
Here are the three most direct ways to obtain your CLUE report.
1. Applying online at LexisNexis’ official website
2. Calling 800-456-6004 or 866-897-8126 (both are the numbers for the LexisNexis Consumer Center)
3. Mailing a request form to LexisNexis Risk Solutions Consumer Center, P.O. Box 105108, Atlanta, GA, 30348-5108
Still have questions about your CLUE report? Or, have you recently requested a copy of your CLUE report, only to find inaccuracies? The attorneys at The Lane Law Firm may be able to help. Give us a call at 713-595-8200, or contact us online today to talk to one of our trusted insurance claim dispute attorneys.
