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Most people are unaware that insurance companies can use a property's claims history as a component for setting premiums for a new policy. A lot of insurance companies utilize CLUE (Comprehensive Loss Underwriting Exchange) to report and inquire about a home's claim history. Surprisingly though, only 12% of buyers request a CLUE report before purchasing their home.
In many states, just an inquiry about property damage can show up on a CLUE report even if a claim was never filed on that inquiry. The CLUE report tracks data for the last 7 years. The report can be obtained for free once every 12 months. However, only the homeowner can request a copy of the report, so potential buyers need to request a copy from a seller while preforming thier due diligence.