Homeowners Insurance

What is a CLUE Report?

You come home from work, open the mail and find a letter from your insurance agent stating that your homeowners insurance policy will be cancelled. Knowing the mortgage company will demand continued insurance, you begin calling other insurance companies, only to be quoted unaffordable rates or be told they will not cover the property. If this scenario sounds all too familiar, then you may have joined the millions of Americans who have a negative CLUE Report.

CLUE, which stands for Comprehensive Loss Underwriting Exchange, is a database used by insurance companies to exchange information about the history of your home including claims, injuries, losses and other pertinent information. The CLUE report remains with the house itself rather than the owner of the home, and can provide valuable information about the status of the property and future likelihood of claims.

If you need homeowners insurance help, it is a good idea to begin early. Shopping for insurance can be time consuming and it is important to make sure you do not have a lapse in coverage. Use these quick tips to replace your homeowners insurance:

  1. Comparison shop.

    Begin by putting together a property information sheet about your home. Include the size, age, type of construction, amenities, location, distance to fire hydrant, security precautions and other factors that might affect insurability. Once armed with all of the information, call insurance agents and ask, “Will you insure my home” with these criteria?

  2. Obtain a copy of the CLUE report.

    Consumers can request a copy of a CLUE report on their home by contacting www.ChoiceTrust.com. It is a good idea to review the information contained in the CLUE report at least to ensure it is accurate. Be sure to put any disputed information in writing and follow up until it is corrected.

  3. It is also a good idea to obtain a copy of your credit report — your personal credit history can impact your insurance rates.

    Free annual reports are available at www.annualcreditreport.com. Again, take time to verify the accuracy of the report.

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