What is a CLUE report for insurance – Forbes Advisor
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Auto and home insurance companies look at your past claims when they price for you. But how do they know about your insurance history? A database called CLUE serves your insurance history.
What is a CLUE report and what does yours contain?
A Comprehensive Loss Underwriting Exchange (CLUE) report provides a history of your property insurance claims for homes, rentals, and vehicles. It is offered by LexisNexis Risk Solutions and the information in the report is subject to the guidelines of the Federal Fair Credit Reporting Act (FCRA).
“Using the underwriting guidelines set out in the FCRA, a CLUE report provides up to seven years of auto and home / tenant insurance loss history associated with an individual,” a LexisNexis spokesperson said. Risk Solutions. “This includes the date of the loss, the type of loss and the amount paid, as well as general information such as the policy number, claim number and the name of the insurance company.”
This information includes claims that have been paid or denied, as well as files opened for potential claims. For example, if you call your insurance agent to ask if certain damages would be covered, but you never initiate a real claim, the agent can still create a new claim file based on your phone call. .
How does a CLUE report work?
CLUE data is compiled much like credit reporting agencies collect information from your creditors about your usage and credit history. Insurers submit information about insurance claims to the CLUE database on a daily and weekly basis. Not all insurers use the service, but most do, says a spokesperson for LexisNexis.
When you apply for a car or home insurance, you authorize insurers to check your records with consumer assessment agencies. This includes rating agencies and services like LexisNexis, which will provide your CLUE report.
Insurance companies use CLUE reports to decide what you will pay for insurance. The reports are meant to accurately reflect your insurance loss history.
Expect higher premiums and limited coverage if your CLUE report shows claims, says Stephanie Dunstan, regional vice president of Arch Insurance Group. “In fact, some insurance companies may deny consumer coverage” based on past claims, she said.
Can you get your own CLUE report, and should you?
As with credit reports, under the Federal Fair and Accurate Credit Transactions Act (FACT Act), you have the right to obtain your CLUE reports annually. You might want to get them every 12 months.
The content of the report affects insurance costs and coverage. Therefore, “consumers should frequently check their CLUE report to ensure that the loss information is accurate,” advises Dunstan.
If you find any inaccuracies, it may take time to correct your reports, but it will ensure you get the best possible coverage options, says Dunstan.
If you find inaccurate or incomplete information in your report, you have the right to dispute that information. You must notify LexisNexis of errors and, under FCRA, they must work with insurers to correct any errors. If LexisNexis cannot verify the information with the insurer within 30 days, they should remove it from your CLUE report.
It may retain any information it verifies to be correct in your CLUE report for up to seven years from the date it was reported.
LexisNexis says it encourages consumers to notify them of inaccuracies in CLUE reports so they can work with the insurance company that provided the information to reconsider the information.
How to get your CLUE report
There are several circumstances that automatically entitle you to learn the contents of your CLUE report at no cost. This includes if you receive an “adverse measure” notice from an insurer denying you coverage based on what they found in the report. The LexisNexis website list other reasons you would be entitled to a free report.
There are three ways to get your CLUE report:
Using a CLUE report to sell your home
If you haven’t made any insurance claims for your home in the past seven years, getting the CLUE report on your property can be a good selling tool.
This can give buyers the reassurance that they are not buying a home with a history of problems that could turn into a money pit. Buyers want to make sure your property hasn’t suffered from fires, water damage, electrical issues, mold, roof damage, termites, sewage backflow, or other issues. A CLUE report will tell them.
Be sure to allow time to check your property’s CLUE report and request corrections, if necessary, before you put the property on the market.
Note that only owners can request a CLUE report for the property. Potential buyers do not have access to someone else’s report.