About Homeowners Insurance and CLUE Reports

Homeowners insurance rates jumped an average of 15 percent this past year, but for some the cost of insurance has doubled or tripled. Insurers say booming housing values, higher repair costs, skyrocketing water damage claims, growing litigation costs, and more fraud are the main reasons for higher insurance costs.

In recent years, home insurance has become not only more expensive but also more and more difficult to obtain for many homeowners. This is usually because of the information found in the CLUE report on a specific property.

A CLUE report is issued by the Comprehensive Loss Underwriting Exchange. It is a clearninghouse of information relating to underwriting factors that impact issuing insurance policies on homes or other real property.

Homeowners may be able to obtain a five-year claim history at no cost by simply requesting the report from their insurance agent. In the alternative, homeowners may purchase a CLUE report on their own property. The CLUE report is sold by a company called ChoicePoint and currently costs $12.99. The report may be obtained by calling 866-527-2600 or by clicking here. Individuals may also obtain a personal insurance history from the same company.

If you're thinking of buying a home, be sure to ask the seller to provide you with a CLUE report. The seller needs to provide this information to you since you do not have the right to order the report on a home that you do not own. Review the report for any past insurance claims and discuss them with your insurance agent or Realtor. If you purchase the home, those claims could have an impact on the cost of your homeowners insurance policy and the ease with which you may be able to obtain one.

If you have any questions regarding CLUE reports and how they impact the homeowners insurance costs, please feel free to contact me at 602-628-3077 or e-mail me.