**Title: Understanding CLUE Reports: A Key Tool for Real Estate Buyers and Sellers**
**What Is a CLUE Report in Real Estate?**
A Comprehensive Loss Underwriting Exchange (CLUE) report provides home buyers with a detailed overview of any homeowners insurance claims that have been filed on a house. Sometimes referred to as a loss history report, a CLUE report can be a handy tool when researching a property youre considering buying. The report helps surface any potential red flags that may cause insurance providers to decline coverage or increase their insurance rates.
In effect, a CLUE report provides a snapshot of a propertys insurance history and any potential issues that you should be aware of before moving in. Read on to learn how a CLUE report can help protect your real estate investments.
**What Is a CLUE Report?**
A CLUE report is a helpful real estate shopping tool that provides the potential home buyer with a detailed overview of any homeowners insurance claims made on the property within the last seven years. This report is useful to buyers as it enables them to get a closer look at the claims history of the property.
Obtaining a CLUE report can help give you a better sense of any concerns youll want to be aware of before buying a new home. You can expect the CLUE report to contain details such as the date of loss, type of loss, and amount of funds paid out. Itll also contain general information about various insurance providers and claim details.
**How Do CLUE Reports Affect Homeowners Insurance?**
A CLUE report can be an important factor in determining homeowners insurance premiums and eligibility for coverage. Insurance providers use the report to assess the risk associated with insuring a property based on its past claims history.
For example, if the CLUE report reveals a previous insurance payout due to foundation issues, a sagging roof, or water damage, it may raise concerns for the buyer and insurance provider. These issues might make it harder or more expensive to upkeep the home and/or procure insurance on the property as needed. Properties with frequent or severe claims may be seen as a higher risk to insurance companies. On the other hand, a clean claims history can result in lower premiums and better insurance policy terms.
A CLUE report is significant in that it can provide claims information that causes a buyer to pause, reevaluate, and reconsider whether it makes sense to purchase a home.
**What Insurance Information Is Included in a CLUE Report?**
A CLUE report contains several detailed insights into personal property claims filed, as well as a number of general pieces of information about insurance providers and loss recovery attempts. These details often include:
– Insurance policy number
– Claim number
– Date of loss
– Type of loss
– Amount paid on the claim
– Insurance company name
**How to Get a CLUE Report**
A CLUE report can be obtained through the consumer reporting agency LexisNexis every 12 months. Only a property owner or insurer can obtain one, but free reports can be ordered via mail, phone, or the internet.
To get one, youll need to provide personal information, like your full name and date of birth, in addition to other personal documents. Youll also need to answer various property ownership questions. As a general rule, the majority of real estate professionals would tend to recommend obtaining a copy of your CLUE report, given the helpful information it provides. If youre buying a house, you can ask the seller to request one so you can review it before making an offer.
**How Much Does a CLUE Report Cost?**
Under the Fair Credit Reporting Act, you can obtain a free CLUE report from LexisNexis once a year. If youre interested in getting more than one in the same year, it will cost $19.95 per report.
**What to Use a CLUE Report For**
Home buyers and sellers can gain many insights from obtaining a CLUE report. For starters, the claims information it contains can help provide you with greater peace of mind as a buyer and alert you to any glaring concerns related to a house outside of a home inspection.
The CLUE report can also help you verify that the home is a good investment property. For example, if you look at your report and see that few insurance claims have been filed, its a good sign that the property remains in good condition.
Conversely, a CLUE report that comes with past claims attached may have undergone significant rehabilitation or repair. If many claims have been filed, it may also indicate issues with construction or buildout, or it could mean that the property is starting to age or fall into disrepair.
**Benefits of a CLUE Report for Buyers and Sellers**
**As a Buyer**
Buyers can use a CLUE report to get a sense of any property claims that are worth being aware of before making an offer on a house. Your insurance agent or provider may also want to see the CLUE report because it offers them a better look at whats going on behind the scenes on any given piece of property.
**As a Seller**
Sellers can use a CLUE report to help give prospective buyers greater confidence in a transaction. It essentially helps provide a home with a clean bill of health at least, from an insurance perspective. Not only is this helpful for the potential buyer but it also makes you a more reliable and trustworthy seller.
**The Bottom Line: A CLUE Report Can Provide Useful Information**
A CLUE report is a helpful financial tool that provides a recap of any home insurance claims filed on a particular piece of property within the last seven years. Using it, buyers can get a better idea of the health of a home, sellers can provide prospective purchasers with greater peace of mind, and insurance companies can get a better sense of how risky it will be to insure the property.
If your CLUE report comes back clear and youre ready to take the next step towards homeownership, start the mortgage process today with O1ne Mortgage Inc. Visit [O1ne Mortgage Inc.](https://o1nemortgage.com) to request a mortgage quote, apply for a loan, or speak with a mortgage expert. You can also call us at 888-372-8820.
**Keywords:** CLUE report, real estate, homeowners insurance, property claims, insurance history, home buying, home selling, mortgage process, O1ne Mortgage Inc.
