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Definition of C.L.U.E.
Definition .

CLUE, an acronym for “Comprehensive Loss Underwriting Exchange” is another hot button
in the real estate industry. CLUE is a database of homeowner’s insurance policy claims
information. In existence for some years now, insurance companies use the database to
determine both the issuance as well as the continuance of homeowner’s insurance policies.

A CLUE Report consists of two parts; the insured’s claim history and the other
property’s claim history. How many claims an insured has made as well as what type of
claims can affect their insurability. 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, but the purchaser as well depending upon the
number of claims the purchaser has made together with the types of claims the purchaser
has made.

Home purchasers have no access to the CLUE database information through their own
insurance carrier because they don’t yet own the property, nor for that matter is their
insurance agent able to supply them any information on the property. 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 not only on the insurability of a
property, but individual purchasers as well, Realtors and their clients should consider three
things:

1. Make disclosure of the CLUE Report one of the contingencies of the contract

2. Submit your insurance application early

3. 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.

Pioneer Title Agency

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