CLUE report home sellers should know

What Is a CLUE Report in Real Estate?

How Insurance Claim History Can Impact Your Home Sale or Purchase

A CLUE report (Comprehensive Loss Underwriting Exchange) is a crucial tool in real estate transactions. This report provides a seven-year history of insurance claims filed on a residential property, detailing the type of claim, payout amount, date, and whether it was approved or denied. Insurance companies use this data to assess the risk of future claims—and it can influence both home insurance rates and buyer decision-making.

🔍 Why CLUE Reports Matter When Buying or Selling a Home

When you're buying a home, a CLUE report helps reveal potential hidden issues with the property, including:

• Past water damage or flooding

• Foundation problems

• Fire or smoke damage

• Mold remediation

• Vandalism or theft

Even if the home appears move-in ready, a history of major claims may point to recurring structural issues, costly maintenance, or higher homeowner’s insurance premiums. Buyers often use this information to renegotiate the sale price or reconsider their offer entirely.

📉 How a CLUE Report Can Affect Your Real Estate Deal

For home sellers, insurance claims—especially multiple or recent ones—can raise red flags. They may:

• Lead to higher insurance quotes for potential buyers

• Cause mortgage underwriting delays or denials

• Create trust issues during inspections

• Reduce buyer confidence and cause offers to fall through

That’s why it’s smart for sellers to pull a CLUE report early, disclose past claims upfront, and provide documentation for repairs, upgrades, or prevention measures taken after the claim.

✅ Pro Tip for Buyers and Sellers

Whether you’re selling your home fast, buying a home with confidence, or preparing for a real estate closing, reviewing the property's CLUE report gives you essential peace of mind—and negotiating power.