The Real Estate Beginners Guide to the Comprehensive Loss Underwriting Exchange (CLUE) in 2025
When buying or selling a property, much attention is given to inspections, appraisals, and market value. However, one often-overlooked factor that can significantly affect a real estate deal is the property’s insurance history. That’s where the Comprehensive Loss Underwriting Exchange (CLUE) report comes in.
The CLUE report is a database maintained by LexisNexis that records insurance claims filed on a property or by an individual. Insurers rely on this information to determine the risk of issuing coverage, while buyers can use it to gain insight into a property’s potential issues. This guide explores what a CLUE report is, how it works, and why it’s essential in today’s real estate market.
An Overview of CLUE
What Is a CLUE Report?
The Comprehensive Loss Underwriting Exchange (CLUE) is a national database of insurance claims. Each report contains up to seven years of claim history on a property or policyholder, including details like:
Date of claim
Type of claim (fire, water damage, theft, etc.)
Amount paid by the insurance company
Name of the insurance company
Who Maintains It?
CLUE is managed by LexisNexis Risk Solutions, which collects data from participating insurance companies.
How CLUE Reports Are Used
By Insurers
Assess the risk level of insuring a property.
Determine premiums and coverage eligibility.
Identify recurring issues (e.g., repeated water damage claims).
By Buyers
Gain insight into hidden problems not revealed by a standard inspection.
Avoid properties with extensive past damage or ongoing issues.
By Sellers
Prepare for transparency by reviewing their property’s CLUE report.
Address concerns in advance that may arise during negotiations.
Benefits of CLUE Reports
Risk Transparency: Buyers know the property’s insurance claim history.
Better Decision-Making: Helps evaluate true long-term costs.
Insurance Predictability: Provides insurers with reliable data for pricing.
Fraud Prevention: Reduces false claims by maintaining a permanent record.
Challenges and Limitations
Privacy Concerns: Only property owners or insurers can access reports directly.
Incomplete Data: Not all insurance companies report to CLUE.
Potential Red Flags: Even resolved claims may negatively impact insurance rates.
Limited Timeframe: Only covers the past seven years of claim history.
CLUE Reports and Real Estate Transactions
For Buyers
Reviewing a CLUE report can prevent surprises after closing.
It highlights risks like past flooding, fire damage, or structural issues.
For Sellers
Disclosing a CLUE report builds trust with potential buyers.
It demonstrates transparency, which can speed up negotiations.
For Agents
Recommending a CLUE report helps clients make informed choices.
It can serve as a negotiation tool if insurance risks impact value.
How to Obtain a CLUE Report
For Homeowners: You are entitled to one free report per year under the Fair Credit Reporting Act.
Through LexisNexis: Requests can be made online, by phone, or by mail.
For Buyers: Must request the report from the seller, as only owners and insurers have access.
CLUE in 2025: Technology and Trends
Digital Access: Faster retrieval and integration into real estate platforms.
Predictive Analytics: Insurers use CLUE data with AI models to forecast risks.
Integration with Property Reports: More lenders and buyers review CLUE alongside appraisals and inspections.
Enhanced Consumer Awareness: More sellers now proactively provide CLUE reports.
Frequently Asked Questions
What is a CLUE report in real estate?
It’s a history of insurance claims on a property or by a policyholder over the last seven years.
Who can access a CLUE report?
Only property owners, insurers, and authorized parties. Buyers must request it from the seller.
Does a CLUE report affect property value?
Not directly, but extensive claims may reduce buyer interest and increase insurance costs.
Can I dispute errors in a CLUE report?
Yes, under the Fair Credit Reporting Act, you can file a dispute with LexisNexis.
Do all insurers report to CLUE?
Most do, but participation is not universal.
Does a CLUE report include denied claims?
It typically includes all claims filed, whether approved or denied.
How far back does a CLUE report go?
Seven years of claim history.
Can a bad CLUE report make insurance impossible?
It may limit options or increase premiums, but usually doesn’t make insurance impossible.
Should sellers provide a CLUE report upfront?
Yes, it can build trust and prevent issues later in the transaction.
Is a CLUE report the same as a home inspection?
No, it complements inspections by focusing on insurance claims history, not current condition.
Related Terms and Concepts
Insurance Premiums: Costs of maintaining property insurance, influenced by CLUE history.
Disclosure Laws: Regulations requiring sellers to inform buyers about property conditions.
Risk Assessment: Evaluation of hazards that impact insurability.
Fair Credit Reporting Act (FCRA): Governs consumer rights to access and dispute CLUE data.
Property Inspection: Physical evaluation of property condition, separate from insurance history.
Wrap Up – Comprehensive Loss Underwriting Exchange (CLUE)
The CLUE report plays an important role in real estate transactions by revealing a property’s insurance claim history. For insurers, it provides essential data to assess risk and set premiums. For buyers, it uncovers potential red flags that might not be visible during inspections. For sellers, it offers an opportunity to build trust and transparency.
In 2025, with greater digital access and integration into real estate processes, CLUE reports are becoming a standard part of due diligence. Understanding how to use them effectively ensures smoother transactions, fairer pricing, and better long-term decision-making for everyone involved in real estate.
