You found your dream home. The inspection looks good. The price is right.
But when you call for a Homeowners Insurance quote, the agent gives you a shock:
"Sorry, the premium for this house is $3,500 a year." (Your neighbor pays only $1,200).
Why?
Because the previous owner filed two claims for "Water Damage" in the last 5 years.
In the eyes of insurance companies, claims stick to the house, not just the person.
To avoid this trap, you must demand a CLUE Report before you close the deal.
Disclaimer: Due to privacy laws (FCRA), only the current owner of the property can request the official CLUE report. You must ask the seller to provide it.
Buying a House? Stop! Don't Sign Until You See the CLUE Report.
1. What Is a CLUE Report?
CLUE stands for Comprehensive Loss Underwriting Exchange. (There is also a similar database called A-PLUS).
Managed by LexisNexis, it is a database that tracks insurance claims history for:
- Properties (Home)
- Drivers (Auto)
It acts like a "Credit Report" for a house. It shows every claim filed in the last 7 years, including the date, type of loss (fire, theft, water), and amount paid.
2. Why It Matters to YOU (The Buyer)
You might think, "I didn't cause the damage, so why should I pay for it?"
Insurers use predictive modeling. If a house had a water leak 3 years ago, statistics say it is likely to have another one (maybe due to old pipes or poor drainage).
The Risks:
- Higher Premiums: You inherit the "High Risk" label, which can double your rate.
- Coverage Denial: In 2026, many insurers will strictly refuse to insure a home with multiple recent claims (even small ones).
- Hidden Damage: The report might reveal a fire, mold, or sewer backup issue the seller "forgot" to mention in the disclosure.
3. How to Get It (The Strategy)
Here is the catch: You (the buyer) cannot order a CLUE report for a house you don't own yet.
Only the current owner can access it.
📝 Action Plan for Buyers
- Make it a Condition: Write into your purchase offer that the seller must provide a current CLUE Report (or "Loss History Report") within 10 days.
- The "Backdoor" Method: If the seller drags their feet, call your insurance agent immediately with the address. While they cannot give you the physical report, they can run a quote and warn you: "I see two water claims in the system."
- If They Refuse: Be suspicious. What are they hiding?
4. Watch Out for "Zero-Paid" Claims
Sometimes, the report shows a claim where the payout was $0.
This often happens when a homeowner calls to ask, "Is this covered?" and then decides not to file a claim.
The Trap: Insurers still view this as a "loss notification." Too many "inquiries" can hurt your insurability just as much as paid claims. Demand an explanation for any zero-paid entries.
5. Can You Fix the Error?
Sometimes, the report is wrong.
If you are the Seller, order your own report before listing. If you find errors (e.g., a claim from the wrong house), dispute them with LexisNexis to clean up the record.
A clean CLUE report is a powerful marketing tool that assures buyers your home is "insurable."
Don't Inherit Someone Else's Problems
Buying a home is the biggest investment of your life.
Don't let a previous owner's bad luck become your monthly financial burden.
A CLUE Report is free for the owner and invaluable for the buyer. Ask for it today.
Helpful Resources:
LexisNexis: Request Your Personal CLUE Report
Insurance.com: Understanding the CLUE Report
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