What Is Clue Report and Why Does It Matter for Buyers?

A CLUE report, or Comprehensive Loss Underwriting Exchange report, is a standardized record maintained by LexisNexis. It logs property insurance claims typically filed over the past five to seven years. The report includes details like the claim date, type of loss, and the amount paid. It does not contain information about the property's condition that wasn't formally claimed. Obtaining this history is an important step in your due diligence as a potential homeowner, as it reveals past issues that could affect your future.

For many homes, the most concerning claims involve water. A history of water damage claims is a major red flag, suggesting the property may have underlying moisture issues that could lead to mold or structural rot. Multiple claims for similar issues, like repeated roof leaks, point to a recurring problem that may not have been fully resolved by the previous owner. Other common claims provide context about the property's exposure to regional perils and its general maintenance history over time.

• Wind and hail damage
• Water damage from plumbing leaks
• Roof damage and related interior leaks
• Theft and vandalism losses
• Fire and smoke damage
• Liability claims for injuries on the property

If you see water damage claims, order a specialized inspection from a qualified professional. They can check for lingering moisture, hidden mold, or compromised structural materials in walls, floors, and ceilings. For any significant past damage noted, consider getting repair estimates from qualified tradespeople, like a plumber or roofer. This information is vital for making an informed purchase decision, planning for future maintenance, and accurately assessing the home's true value and potential costs.