Most home insurance companies in America use the CLUE database to help them determine the insurance premiums to charge specific customers. CLUE is an acronym for the Comprehensive Loss Underwriting Exchange. The database maintains records of property damage to homes. Insurance companies use this information when they are underwriting new insurance policies. They look to see if a new policyholder has filed many previous insurance claims, the type, and amount before determining the rates to charge. They also look to see if a home a person bought or is considering purchasing has had previous claims for repairs. All of these things factor into the cost of a person’s home insurance premium.

The CLUE database includes information about you and your home for the last seven years. Many insurance companies take a very close look at the most recent information weighing incidences that occurred in the last five years or less more heavily. While a single claim against your homeowners insurance will most likely not raise your insurance premium, you can expect your premiums to increase after two or more instances where you file a claim and it is reported to the CLUE database by your insurance company.

The CLUE database was created by ChoicePoint and is now run by LexisNexis. It is a restrictive database that is only available to insurance companies that subscribe to the company’s service. Only insurance companies that subscribe to the database can have access to your claims history or place new reports on your insurance file. While some insurance companies do not subscribe to the database’s subscription service and instead choose to conduct their own manual underwriting, a vast majority of American insurance companies use the service to help them with their underwriting of new policies.

If you have recently been denied an insurance policy or quoted a seemingly exorbitant amount for your premium from an insurance company, it may be worthwhile to request a copy of your CLUE report and check it for any incorrect information that may be listed against you. Like your credit report, you could possibly be paying higher insurance premiums for incorrect information that is listed in your CLUE report. There are some instances where claims are incorrectly applied to your report that you never made or lists claims incorrectly. Thanks to the Fair Credit Reporting Act, you can ask to receive your CLUE report by simply sending a written request to LexisNexis. It could be well worth your time and effort to correct any mistakes that you find.

Using a person’s previous claims has been a primary means of insurance companies to forecast future claims and has been an integral part in the underwriting process for insurance companies. The CLUE database provides insurance companies with a history of claims you have filed. It can play an important role in receiving cheaper home insurance if you ensure that your CLUE report is up-to-date with the correct information.