Why Americans Get a C.L.U.E. & We Australians Don’t

Eriks Draiska
Published on January 19, 2017

Why Americans Get a C.L.U.E. & We Australians Don’t

Whilst researching for more stories for our Blog, I came across CLUE. Whilst it does not apply to us Aussies, it made a fun article to write about a play on words.

In the information age, the chances are pretty good that your personal information is in at least several databases that you may not even be aware of. Auto and homeowner insurance companies, for instance, have a handy tool to help them make underwriting decisions – a database of previous insurance claims. The Comprehensive Loss Underwriting Exchange, also known as C.L.U.E., is generated by LexisNexis® and insurers will base the yay or nay of Americans insurance application, at least partially, on what they find in the C.L.U.E. report.

The database includes basic information on folks who have filed claims, including name, date of birth, address and, of course, the actual information about the claim filed (date filed, type of claim and the amount of money it took to satisfy it).

For instance, if a tree fell on their home during a wicked storm, causing roof damage, and they filed an insurance claim, it may appear in the database along with information pertaining to whether or not they were reimbursed for the damage. All claims reported, by the way, paid for or not, remain in the C.L.U.E. database for seven years.

Not all insurance companies contribute to C.L.U.E.

If Americans have visited one of the big real estate listing aggregator websites such as Trulia or Zillow. They will not find all of the nation’s Multiple Listing Services supply listing information to them? The same holds true for the C.L.U.E. database. So, just as they aren’t getting the whole story on the number of listings of homes for sale in their area from one of those big sites, so too they’re not getting the entire claims history from C.L.U.E.

Do they need a C.L.U.E. report?

While the report may not contain all of a home’s claim history, they may still find some valuable information in it. Michelle Lerner with Money Crashers suggests that even a basic report may give hints about ongoing problems with a home, “particularly claims that involve water damage,” she said. “For example, if a home has had even one claim involving water, investigate the existence of mould or perhaps explore the need for flood insurance,” she continues.

Other clues they may find in a report include multiple reports of burglary, which might indicate a crime problem in the neighbourhood. More than one house fire may be an indication of electrical problems in the home.

The amounts of money required to remedy the claim are also worth a look as these indicate how severe the problem was.

What if the home they want has a long claim history?

It’s not the length of the claim history that matters, it is the dispensation of the claim they want to pay attention to. For instance, in the aforementioned roof damage claim, if the homeowner’s insurance company replaced the roof, the home “becomes more desirable to an insurance company,” according to Michael Barry of the Insurance Information Institute in New York. They may even receive a break on the price of their premiums (depending on the insurance company, of course).

Even repeated burglaries or vandalism need not be deal breakers, but merely a tip to install a robust security system if they’re head-over-heels and must have the home.

How American get a C.L.U.E. report

The C.L.U.E. database is available to insurance companies, lenders and homeowners. As a buyer, they’ll need to request a report from the homeowner who is entitled to one free copy per year.

If they’re a homeowner and would like to get their hands on a copy of your C.L.U.E. report, they can call LexisNexis® or visit personalreports.lexisnexis.com. Like your credit report, it’s possible that their C.L.U.E. report contains errors, so they should inspect it and file a dispute with LexisNexis if they find any.

To find out more, you’re welcome to call 08 83961100 to arrange a chat with people that care.
Alternatively, Book a Free Consultation or Get Your Home Value Here.
Feel free to browse the rest of our Blog for more tips tricks and helpful info you can use.
Not sure of some of the terms & meanings used? Check our comprehensive Glossary and Abbreviations!
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Regards Eriks & Team Plaza Real Estate 

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