When you want to sell or buy a home, a CLUE report (comprehensive loss underwriting exchange) will come into play. If you are not sure what a CLUE report is and how it affects you, it’s important to get educated. CLUE reports determine whether individuals and properties are approved for homeowners insurance, and if so, the results will also dictate the rates charged. Learn about the power of a CLUE report and how it may affect your decision-making when it comes time to make an insurance claim on your roof.
What Is a CLUE Report?
A CLUE report is compiled data on every insurance claim submitted by an individual in a seven-year period. Using a database called LexisNexis, insurance companies look up applicants by name and review the claims they have submitted in the past before deciding whether to approve them for an insurance plan through their company. When insurance agents look up a CLUE report, they see the applicant’s name, date of birth, claim and policy information. If the claim was placed on a specific property, they see the address of the home. If the claim was placed on a vehicle, they see detailed information on the car.
If too many claims are filed within a seven-year period, insurance companies may drop the policy or refuse to approve the application for insurance coverage.
How Does a CLUE Report Affect Roof Repairs?
Homeowners who have experienced water damage as a result of a roof issue may want to file a claim with their insurance company and receive funds to help repair the problem. This is the purpose of insurance coverage and it is perfectly acceptable to file claims covered under the limits of a policy.
However, homeowners may want to think twice about filing a roof repair insurance claim in certain circumstances. First, if they have already filed a number of property claims at the address within a seven-year period, their insurance coverage may rise significantly the next year. After the deductible, the funds received to repair a leaking or water-damaged roof may not outweigh the future higher insurance costs.
Secondly, if the homeowner is planning on selling the home within the next five to seven years, filing an insurance claim may work against them in more than one way. First, the incoming buyer may request a copy of the CLUE Home Seller’s Disclosure Report. While this version of the insurance companies’ CLUE report leaves out all identifying personal information, the document still lists all damage claimed at the property within the last five years. If they see the roof has issues with water leakage, they may steer away from purchasing your property. Even when homeowners explain the damage was repaired, insurance claims are a symbol of problems to potential buyers.
And if the home does sell? The homeowners’ individual CLUE reports can prevent them from obtaining coverage on their next home. They may be arranging to purchase their dream home only to see the sale fall through due to a lack of adequate insurance coverage.
Get a roofing repair quote from an experienced professional, such as the team at Knockout Roofing, before you go about making insurance claims that may damage your CLUE report and harm your future homeowning plans.