CLUE is an abbreviation for Comprehensive Loss Underwriting Exchange. What is it? It’s a claims historical past database produced by shopper reporting company LexisNexis. In the only type, when an auto or property insurance coverage declare occurs, the insurance coverage firm paying the declare offers the claims data to LexisNexis (note- nearly all of insurance coverage corporations take part, however not all). This claims data is then accessed when underwriting and/or ranking insurance coverage insurance policies. Following is an instance when it’s mostly used.
Here’s how CLUE is used inside insurance coverage
Let’s say you wish to get quotes on your autos and residential. You contact an agent and supply the requested data. Within the quoting course of, the CLUE reviews are pulled for each the autos and property. Claims reported AND paid seem. Yes, even when there was no payout, if the declare was reported to the insurance coverage firm, it would seem (a superb factor to know).
Claims usually keep on a CLUE for 5-7 years, though many insurance coverage corporations solely look again 3-5 years.
The agent then should ask for particulars for what seems with the intention to decide eligibility, as insurance coverage corporations have pointers for what is appropriate for his or her packages. Continue on for an instance of what every CLUE comprises.
What you may count on to see in CLUE reviews
Let’s start with auto. People are sometimes stunned by the quantity of data contained, however keep in mind, if an insurance coverage firm is attempting to determine whether or not you qualify for his or her auto program and what fee they should cost, they want particulars. An instance follows under.
|Claim Type||Status||Amount Paid|
|Total Loss Amount||$5,279.00|
This desk reveals the kind of protection that the declare was paid below, whether or not the declare is open or closed and the greenback payout. It additionally signifies a deductible was paid by the insured as a part of this declare. SUPER IMPORTANT INFORMATION ALERT: the standing is vital right here. Most insurance coverage corporations do NOT write new insurance policies with an open declare. So if it reveals as Open, this might stop you from getting new insurance coverage. ALSO SUPER IMPORTANT TO KNOW: I discussed even when the payout was zero, if the CLUE reveals two claims, one with zero payout and the opposite with a payout, it counts as TWO claims, not one. This may additionally negatively have an effect on your means to get insurance coverage.
In addition to the above, the next can be listed: driver concerned, kind of loss (on this case accident), loss date, whether or not at-fault or not-at-fault, car concerned (together with VIN), car operator title, car proprietor title, policyholder title, and quite a lot of inner LexisNexis reference numbers.
Now onto CLUE property (additionally known as CLUP).
|Claim Type||Status||Amount Paid|
|Total Loss Amount||$1,757.00|
The claimant title can be listed, together with the loss date and an inner reference quantity assigned by LexisNexis. Just just like the CLUE auto, the standing is vital right here. Open claims usually are not seemed open favorably by insurance coverage corporations and may stop you from acquiring new insurance coverage. Also as talked about above, a zero payout declare nonetheless counts as a declare and will negatively have an effect on the flexibility to get insurance coverage.
What if there’s a mistake or error in my CLUE report(s)?
Unfortunately, we as brokers have ZERO means to repair a report. Remember, the knowledge comes straight from the insurance coverage firm and now we have no authority to vary it. You should dispute the wrong data straight with LexisNexis by requesting a Description of Process Letter. You can see a common description of the dispute course of as effectively. They will advise the ultimate standing as both correct, discover of information correction or discover of information being eliminated.
CLUE Property and buying a brand new residence
So you’ve made a suggestion for a house you need, the supply has been accepted and also you’re now on the trail to creating the acquisition (i.e. closing). You contact your agent (or an agent when you don’t have one but) and supply all data concerning this property. As beforehand talked about, the knowledge is fed into the quoting software program and the CLUE report is run. A declare that occurred two years in the past seems for the property you’re buying (also known as a “threat” declare because it’s related to a particular property). If insurance coverage corporations return 3-5 years for eligibility, this declare may matter. Is the declare closed? If not, then once more, that would present an issue with buying a coverage. If closed, what was the reason for the declare? Has the injury been repaired? Insurance corporations don’t wish to inherit an issue that may end in future claims. And you don’t wish to tackle an issue both. Homes should be effectively maintained and up to date to be thought of.
What when you’re not working with an agent, however want to know if a property has had any insurance coverage claims? You can request that the property proprietor order a CLUP. Similar to a private credit score report, a CLUP could be ordered, freed from cost, annually.
Why would you wish to see a CLUP for a property you wish to buy? Simple- you could discover out about potential hazards or points with a property similar to mildew, water injury, roof injury, fireplace, or sewer/septic points. Obviously you wish to know if the issue has been fastened, the chance of the issue occurring and the way this modifications the negotiations. As referenced earlier, variety of claims, kind of claims and standing of claims can negatively have an effect on the flexibility to get insurance coverage, so maybe the property is NOT a sensible choice.
Why it’s best to care about CLUE reviews
As you may see CLUE reviews are fairly necessary within the insurance coverage buying course of, as they decide eligibility for a coverage, the suitable premium to cost and should even impression a significant choice similar to shopping for a house.