The CLUE Report.

The CLUE report helps insurance companies to assess the risk they assume when they issue a homeowners insurance policy. CLUE is the acronym for Comprehensive Loss Undertaking Exchange. It is a consumer report kept by an independent consumer database operator called Choicepoint. They compile and sell consumer data. Insurance companies contribute to the database and use the database to verify the claim history of the insured. The ISO or “insurance service office” also has a property loss database that is used by insurance companies for assessing their risk.  They can access and study your claim history by using the report.

Contents Of The CLUE Report.

The CLUE database contains details of the date of loss, the type of loss, the amount paid, property damage information, the property address, the policy number and details of the catastrophe, which resulted in a claim like hurricane damage. Insurance Companies contribute to the database and withdraw information from the CLUE database. The information stays in the CLUE report for five years. It is standard industry practice to remove all data from the CLUE database after five years. 

The Significance Of The CLUE Report For Insurance On The Home.

The job of insurance companies is to assume risk and then try to pay less in property claims by insuring those whom they consider as lesser risks. If the insured does not make a claim, the insurance company profits. To make sure that no claim is made, the insurance company will assess how much risk it is taking by selling homeowners insurance coverage. If the CLUE report shows a high claim history, then the insurance company will refuse to issue a policy or refuse to renew the policy.  

 Obtaining A Copy Of The CLUE Report.

You can get a copy of the CLUE report. The cost of the CLUE report is $19.50 per address. The insurance company must inform you if they are refusing a policy or refusing to renew a policy based on the details of the CLUE report. You can dispute any inaccurate or incomplete information in the CLUE report and apply again if your application was rejected based on a faulty report. You have the right to get a free CLUE report every twelve months.  

Importance Of The CLUE Report.

The clue report not only helps you get a good deal on your insurance policy but also helps you learn about the insurance claims made by previous homeowners. This will give you an indication whether the house is worth purchasing if you are planning to buy a house and to insure it.  Those who are experts in the insurance industry suggest that you obtain at least three insurance quotes that are free via the Internet. For more information on home insurance click: influences on premiums.