What is a CLUE report?

A CLUE report — short for Comprehensive Loss Underwriting Exchange — is an insurance claims history report used by insurers when underwriting a home policy. It can show a property's claim history from the past seven years, including the date of loss, type of loss, amounts paid, and other details reported by insurers.

Think of it as the insurance version of a background check on the property. It helps carriers understand how often a home has had claims and what kinds of losses have been filed over time.

Why it matters

Insurance companies use CLUE data to help decide whether to insure a home and how much to charge. A property with multiple claims — especially water damage, fire, roof damage, or other significant losses — may be viewed as a higher risk, leading to higher premiums or fewer coverage options.

That matters here in the Phoenix metro area because insurance is already a major part of the monthly housing cost. Even if a home looks perfect on the surface, its past claim history can affect affordability and underwriting before closing.

What buyers should know

If you're buying a home, the CLUE report can help you avoid surprises after your offer is accepted. A property may appear well maintained, but its claim history could still affect whether you can obtain coverage at a price you're comfortable with.

In Arizona, insurance claim history is commonly part of the home-buying conversation. I always advise buyers to request it early enough to review any concerns before deadlines get tight. If there's inaccurate information, it's better to catch it before it slows down underwriting or closing.

What sellers should know

If you're selling, it's smart to gather the insurance claims history early rather than waiting until the contract stage. I advise requesting it before listing so there's time to address delays, missing documents, or questions from the buyer's insurer.

A clean and accurate claims history helps keep the transaction moving. If there were past claims, being ready with repair invoices, permits, and explanations can reduce confusion and build buyer confidence.

Can it affect future insurance rates?

Yes. The whole purpose of the CLUE system is to help insurers evaluate risk, and claims history can influence both policy pricing and underwriting decisions. That means past claims tied to a home can potentially affect future insurance rates for the next owner as well.

That does not automatically mean a home is uninsurable — it simply means buyers and sellers should understand the report early and plan accordingly, so the insurance part of the transaction doesn't become a last-minute problem.