Buying a Home? Get a CLUE About the Property’s Claims History

Quick Answer: A CLUE report (Comprehensive Loss Underwriting Exchange) is a property-specific insurance claims history covering the past seven years. Pennsylvania home buyers should request one before closing—it can reveal water damage, fire losses, mold claims, and other problems that a standard home inspection may miss. Sellers can obtain the report free of charge through their insurance carrier or LexisNexis.

What Is a CLUE Report, and Why Does It Matter When Buying a Home?

If you are shopping for a home this spring or summer, you have probably heard about home inspections, mortgage pre-approvals, and title searches. But one piece of due diligence that many Pennsylvania buyers overlook is requesting a Comprehensive Loss Underwriting Exchange (CLUE) report for any property they plan to purchase.

A CLUE report compiles up to seven years of insurance claims filed on a specific property—not on the seller personally. Think of it as a vehicle history report, but for the house itself. It tells you what went wrong with the property in the recent past, and that history matters enormously.

Our real estate attorneys at Fiffik Law Group, our affiliated law firm, represent home buyers throughout Pennsylvania. Every season, we see clients enter transactions without reviewing a CLUE report—and sometimes discover expensive problems only after closing.

What Information Does a CLUE Report Contain?

A property CLUE report typically includes the following data for each insurance claim filed in the past seven years:

• Date of the claim

• Type of loss — such as water damage, fire, wind, theft, mold, or foundation issues

• Amount paid by the insurance carrier

• Policy information for the insurer that processed the claim

• Description of the damage or loss event

Claims are organized by loss type, so you can quickly spot patterns—for example, repeated water intrusion claims that may signal an ongoing structural or drainage problem.

Five Reasons Pennsylvania Home Buyers Should Request a CLUE Report

1. Uncover Hidden Defects Before They Become Your Problem

A traditional home inspection is a snapshot in time. An inspector walks the property on a single day and documents what is visible. A CLUE report is a historical record. It can reveal water damage that was remediated and painted over, a roof claim from two years ago that the seller never mentioned, or a mold remediation whose underlying moisture source was never corrected.

These are the kinds of defects that generate expensive repair bills—and sometimes post-closing litigation—after you have already signed and funded.

2. Determine Whether the Property Is Insurable at Reasonable Rates

Insurance carriers use CLUE data when underwriting homeowners policies. A property with a significant claims history may be difficult to insure at standard market rates—or at all. If you cannot obtain adequate homeowners insurance, your mortgage lender will not fund the loan.

Even where coverage is available, a problematic claims history can mean substantially higher premiums. For buyers already stretching to afford a home in today’s market, an unexpected insurance surcharge can disrupt the entire transaction or strain household finances for years.

3. Strengthen Your Negotiating Position

Information is leverage. If a CLUE report reveals a significant claim—for example, $50,000 in water damage three years ago—you can:

• Request documentation showing repairs were properly completed and permitted

• Hire a specialist to evaluate the previously damaged area

• Negotiate a purchase price reduction to account for residual risk

• Request a seller’s repair credit or escrow holdback at closing

• Walk away with your deposit intact, if your inspection contingency is properly drafted

Without the CLUE report, you would not know to ask any of those questions.

4. Identify Properties With Repetitive Flood or Water Losses

Some properties—particularly in flood-prone areas along Pennsylvania rivers and streams—have been repeatedly damaged and claimed. Federal flood insurance programs impose restrictions and surcharges on properties designated as Repetitive Loss or Severe Repetitive Loss properties. A CLUE report, combined with a FEMA flood zone determination and an elevation certificate where applicable, can flag these situations before you commit.

5. Verify the Accuracy of the Seller’s Disclosure

Pennsylvania’s Real Estate Seller Disclosure Law (68 Pa. C.S. § 7301 et seq.) requires sellers to disclose known material defects using a standardized form. Cross-referencing the seller’s written disclosures against the CLUE report is one of the most effective ways to verify that what the seller is telling you matches the property’s actual history.

What Pennsylvania Law Requires—and What It Does Not

Pennsylvania’s Seller Disclosure Law requires sellers to disclose known material defects including water intrusion, roof problems, structural issues, and similar conditions. Sellers complete a standardized disclosure form before listing the property.

Critical Point

Pennsylvania law does not require sellers to provide a CLUE report. The standard seller disclosure form does not include it. Moreover, a seller may be completely unaware of certain claims—particularly claims filed under a prior owner’s policy—and may make no disclosure about them at all. The CLUE report fills that gap, giving buyers access to claims history that predates the seller’s ownership.

This is why proactively requesting a CLUE report as part of your due diligence goes beyond what the law requires sellers to volunteer. It is the buyer’s responsibility to ask—and your attorney’s job to make that ask contractually binding.

How to Get a CLUE Report When Buying a Home in Pennsylvania

Here is the key practical point: buyers cannot order a CLUE report directly. Only the current property owner—the seller—can request it from LexisNexis. Sellers can obtain their own report free of charge. Here are three ways to make it happen in your transaction.

Option 1: Ask Your Buyer’s Agent to Request It Early

If you are working with a buyer’s real estate agent, instruct your agent before you begin touring homes that you want a CLUE report for any property you make an offer on. A proactive buyer’s agent will raise this during showing arrangements and ask the listing agent or seller before offers are exchanged.

Option 2: Include a CLUE Report Requirement in Your Agreement of Sale

The standard Pennsylvania Agreement of Sale does not include a CLUE report requirement. Your real estate attorney can draft an addendum or include specific contract language requiring the seller to obtain and deliver a current CLUE report within a defined number of days of contract execution. This makes the obligation contractual and enforceable.

Sellers can obtain their property’s CLUE report free of charge by contacting LexisNexis at 1-866-312-8076 or through the LexisNexis consumer disclosure portal. The report is generated quickly. A seller who refuses a reasonable request to provide this information should prompt careful consideration on the buyer’s part.

Option 3: Raise It During the Inspection Contingency Period

If CLUE report language was not included in your Agreement of Sale, an experienced real estate attorney may be able to raise the issue during the inspection period as a condition of proceeding with the transaction. The viability of this approach depends on how your contract is written—which underscores why it is important to have your attorney review the agreement before you sign it.

Frequently Asked Questions

1. Can a seller refuse to provide a CLUE report?

Yes. Pennsylvania law does not compel sellers to provide one. However, a seller’s refusal to obtain and share a CLUE report is itself meaningful information about how forthcoming they are willing to be. Buyers should factor that reluctance into their overall assessment of the transaction risk.

2. What if the CLUE report shows no prior claims?

A clean CLUE report is a positive sign, but it is not a guarantee of the property’s condition. Sellers or prior owners may have repaired damage out of pocket without filing an insurance claim—perhaps to avoid premium increases. That is why a CLUE report supplements, but does not replace, a thorough physical home inspection.

3. Does a CLUE report include claims by prior owners?

Yes. The report is property-specific, not owner-specific. Claims filed by prior owners during the seven-year look-back period will appear in the report. This means the current seller may not even be aware of claims in the CLUE report, which is one more reason not to rely on seller disclosure alone.

4. Can a CLUE report affect my ability to get a mortgage?

Indirectly, yes. If CLUE report data causes insurers to decline coverage or offer coverage only at prohibitively high rates, and you cannot obtain adequate homeowners insurance, your mortgage lender will not fund the loan. Insurability is therefore a practical financing concern, not merely an abstract one.

5. Is a CLUE report the same as a home inspection?

No. A home inspection is a physical examination of the property’s current condition performed by a licensed professional. A CLUE report is an insurance claims history. They serve different and complementary purposes. A thorough buyer uses both.

6. How far back does a CLUE report go?

A CLUE property report covers up to seven (7) years of insurance claims on the property.

How a Real Estate Attorney Protects Pennsylvania Home Buyers

Pennsylvania does not require buyers to be represented by an attorney at closing. But having an experienced real estate attorney in your corner makes a measurable difference. We can provide Pennsylvania home buyers with the following services:

• Reviewing and negotiating the Agreement of Sale before you sign, including CLUE report contingency language

  
  

• Advising you on seller disclosure obligations and what red flags to watch for

  
  

• Coordinating with your title company, lender, and real estate agent throughout the transaction

  
  

• Reviewing the title commitment and identifying potential title defects or encumbrances

  
  

• Attending or reviewing closing documents to ensure your interests are protected

  
  

• Providing guidance if issues arise after the CLUE report or inspection results come in

The cost of legal representation is modest compared to the financial and legal exposure of entering a transaction without it.

Contact a Pennsylvania Real Estate Attorney Before You Sign

If you are under contract, preparing to make an offer, or simply beginning your home search this season, contact us today. Our Pennsylvania real estate attorneys will help you understand your rights, protect your investment, and navigate the homebuying process with confidence.