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Don’t Have A CLUE About The

CLUE Report?

A CLUE Report consists of two parts; one addresses the insured’s claim history, the other the property’s claim
history. How many claims an insured has made as well as what type of claims can affect their insurability. The
type and number of claims made on the property affect the insurability of the residence. In determining whether
or not to issue or terminate new policies, some insurers consider both the claims history of the proposed insured
(home purchaser) as well as the claims history of the property itself; still others consider the claims history of the
proposed insured alone. In other words, there is no standard for making the insurability determination within the
industry. Nonetheless, a CLUE Report may affect not only a property which interests the purchaser. The CLUE
Report also affects the number of claims along with the type of claims the purchaser has made in the past.

Home purchasers have no access to the CLUE database information through their own insurance carrier because
they don’t yet own the property. The insurance agent isn’t able to supply the property information either. A
purchaser is permitted to see only that part of the report that pertains to his or her own individual claims history.
The property seller alone may provide a copy of the report to a prospective purchaser and the seller may obtain
a copy of the CLUE Report from www.choicetrust.com for a nominal fee.

As a consequence of the impact that CLUE may have on the insurability of a property, but individual purchasers
as well. REALTORS and their clients should consider three things:
®
• Make disclosure of the CLUE Report one of the contingencies of the contract.
• Submit your insurance application early.
• Should your current carrier determine a property uninsurable, consider a company that makes its
determination solely on the purchaser’s claim history, not that of the property as well.

More home buyers, concerned about possible previous insurance losses experienced at a property they are
considering, are requiring home sellers to provide a CLUE report as a contingency to a purchase offer. A CLUE
Home Seller’s Disclosure Report is an independent source of information about insurance losses at your home
address within the past five years.

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