Are CLUE reports only for homeowners insurance?
No. CLUE reports can cover property loss claims made against automobile insurance policies as well as homeowner’s insurance. Automobile and homeowner’s claims are maintained in separate databases, and CLUE reports are issued separately based on the type of insurance. Problems experienced by consumers in the homeowner’s insurance market because of errors in CLUE reports have received media attention lately, contributing to the perception that CLUE reports only pertain to homeowner’s insurance. In addition, many consumers who are taking advantage of the booming real estate market of late have discovered, often at the eleventh hour, that the property they want to buy or sell comes with its own CLUE report. Reports of water damage included on a home’s CLUE report, for example, could blacklist the property, even if the owner never filed a claim and even if the real estate market is hot. Worse, the seller or buyer is not likely to know about errors in the report until the deal falls through.
