Loss History Reports
What Are They?
- Most of the information needed to underwrite and rate an
insurance policy comes from the application.
- Companies also use physical inspections and claims histories
as part of the evaluation.
- Claims history was formerly obtained by phone, fax or letter.
Now companies use Loss History Reports produced by CLUE and A-PLUS
to get claims histories.
- Loss History Reports are simply a record of losses and include 7 years of claims data.
- Reports contain claims and inquiries data on the address and on the person. By law, one free report is allowed per year.
from LexisNexis, stands for Comprehensive
Loss Underwriting Exchange.
- Verisk Analytics/ISO provides A-PLUS, which stands for Automobile-Property Loss Underwriting System.
- A commercial version of A-PLUS is available from Verisk/ISO called a BUR report (Building Underwriting Report) by calling 800-444-4554. This data may also be available from LexisNexis (CLUE).
- Insurance companies report claims and inquiries monthly to Verisk (A-PLUS) and LexisNexis (CLUE).
- 70% to 80% of homeowners and homes have a clean Loss History
- Insurance companies have used Loss History Reports for
more than 10 years.
Why the controversy about Loss History
attention to Loss History Reports is due to more complete underwriting
of the risk of future claims, including water losses.
problems, such as a gradual roof leak, are typically not covered.
losses are a concern because of multi-million dollar jury awards
for mold damage not covered under the
is usually excluded for mold damage, except when resulting from
a covered loss – such as a fire, windstorm or broken pipes.
underwriting guidelines and higher rates were needed to reduce
losses. Loss History Reports have become a more prominent tool
as a result.
Facts vs. Myths
- Loss History Reports are readily available to homeowners
and are not secret.
- Loss History Reports contain only information from
insurance companies – no other information is included in Loss
- Loss History Reports do not include a “score” and make
no recommendations. They are simply a record of what actually
- Loss History Reports are used only for new business. Companies
use their own data for renewals.
- For Realtors, Agents and Consumers, a Loss History Report
is just a record of the facts. Tighter underwriting guidelines
and higher rates needed to reduce losses have resulted in closer
scrutiny of prior claims.
What’s in a Loss History Report?
- CLUE reports include loss information from 600+ companies (90% of Homeowners
- A-PLUS includes data from 1200+ companies (90% of the industry’s premium
CLUE and A-PLUS sort by person, property or vehicle.
Why do Insurance Companies use Loss History
- Loss History Reports make gathering claims history more
efficient, more reliable and less expensive.
- When a Loss History Report is used to evaluate a property,
the underwriter is looking to verify its condition.
- Companies don’t want to “buy a claim” that started before
the new policy was in force.
- Companies want to charge an appropriate rate for the actual
risk of a future loss – without asking lower-risk customers to
subsidize customers or properties with higher-risk characteristics.
How do Insurance Companies Use Loss History
History Reports are used only for new business. Companies use
their own data for renewals.
companies look at both the applicant’s claims history and the
claims history of the home being purchased.
companies underwrite only the applicant’s personal claims history,
not the home they’re buying.
companies consider any incident (paid or not) as relevant because
damage actually occurred.
companies only count a loss if the insurance company paid a claim.
insurance companies will not write a new policy for a home that
has prior water damage unless the buyer can provide an inspector’s
report showing that repairs were complete and effective.
How are Loss History Reports
used by Consumers?
History Reports do not take the place of Home Inspections and
reading the Disclosures from the seller.
History Reports only contain property loss information reported
to an insurance company. A property loss that is handled by the
homeowner without contacting an insurance company will not appear
in a Loss History Report.
- Homeowners can obtain Loss History Reports prior to listing
their homes to review the reports for accuracy and make any corrections
needed before the home goes on the market.
- Some homebuyers are requiring a Loss History Report from
the seller prior to making an offer.
- Homebuyers can use Loss History Reports as an additional
source of information for identifying prior damage.
- These reports can be used as a guide for an inspector to
verify that repairs have been done properly for any prior damage
appearing in the report.
Consumers can get a CLUE report showing a 5-year history
for themselves and the homes they own. A-PLUS reports show an
individual’s 5-year history and the home’s history for as long
as the person has owned that home.
Who can get a Loss History Report?
- Insurance companies, insurance agents and homeowners have
access to Loss History Reports.
homebuyer can’t access these reports until a real estate contract
is signed, due to the “permissible access” rules of the Federal
Fair Credit Reporting Act (FCRA).
- Buyers can request a Loss History Report from the seller
before making an offer on the home.
How does an authorized person get a Loss
By law, property owners are entitled to one free CLUE and/or A-PLUS report per year.
- To order a CLUE
report, call 866-312-8102 or order online at Personalreports.lexisnexis.com
reports are available by calling 800-627-3487 or visit the Verisk Analytics website.
What if a homeowner disagrees with the
information in a Loss History Report?
there is a dispute over a claim in a report, ISO or LexisNexis
will contact the insurance company on the consumer’s behalf.
Under FCRA, the insurance company has 30 days to respond.
the company fails to respond within 30 days, the claim is removed
from the report.
the item is not removed, the homeowner has the right to add a
permanent statement to the report.
than 1% of all disputes require a change in the A-PLUS or CLUE
Why is the 60-day Underwriting Period
- After a policy issues, companies have 60-days to verify
the risks associated with the property – using information from
the application, inspections, and Loss History Reports.
- Increased home sales increase pressure on application processing
and inspection schedules, increasing the time needed to evaluate
- Create accurate expectations by educating yourself about
Loss History Reports.
- Sellers can get Loss History Reports before listing to
check for accuracy and correct any errors that they find.
- Buyers can request a Loss History Report from sellers before
an offer is made.
- Encourage new homebuyers to apply for insurance within
5 days of an accepted offer.