Loss Report
What Does Loss Report Mean?
An insurance loss report is a document detailing past claims made on an insurance policy. These reports are essential for insurers, policyholders, and potential homebuyers as they provide insight into the claim history of a policy or property.
Insuranceopedia Explains Loss Report
Loss reports are commonly prepared for auto, homeowners, and renters’ insurance policies.
Key Details in a Loss Report
A typical loss report includes:
- Date of occurrence of the claim
- Type of claim (e.g., fire, water damage, theft, collision)
- Amount paid by the insurer for the claim
- Reserved amount (estimated cost for unresolved claims)
- Policyholder information
Even if no claims have been made, a loss report should still be issued to confirm a clean history.
How Insurance Loss Reports Are Used
Insurance loss reports, sometimes referred to as loss history reports, play a crucial role in underwriting and property evaluation.
For Insurance Companies
- Help assess risk levels before issuing or renewing policies.
- Influence premium rates based on past claims.
- Assist in detecting potential fraudulent claims.
For Policyholders
- Offer a record of claims filed under their policy.
- Help in obtaining accurate insurance rates.
- Provide insights into previous property damages.
For Homebuyers
Loss reports for a property can highlight past damage that may not be disclosed by the seller.
Help determine if a home inspection is necessary before purchasing.
Where Are Loss Reports Stored?
Insurance loss reports are stored in the Comprehensive Loss Underwriting Exchange (CLUE), managed by LexisNexis. This database allows insurers to review historical claims data when underwriting policies.
How to Access Your Loss Report
- Request Your Report: Consumers are entitled to one free loss report per year under federal law.
- Time Limit for Claims Data: Claims are typically removed from the CLUE database after five to seven years.
- Where to Get It: You can request your loss report through LexisNexis.
Why Insurance Loss Reports Matter
- Transparency in insurance underwriting – helps insurers make informed pricing decisions.
- Protection for homebuyers – allows them to identify potential risks before purchasing a property.
- Recordkeeping for policyholders – ensures they are aware of their claims history and any possible impact on future policies.
Conclusion
An insurance loss report is an essential tool for insurers, policyholders, and homebuyers. Whether you’re checking your own policy history or evaluating a property before purchasing, understanding and accessing these reports can help make informed insurance and financial decisions.
