Tom and Tammy Evans were ready to purchase a home.The home was to serve as collateral for their mortgage loan.Two insurers declined to insure the home,citing "an adverse CLUE report." Why would an insurer reject a homeowners insurance application because of an adverse CLUE report?

Question

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CLUE (Comprehensive Loss Underwriting Exchange) is a database of insurance claims maintained by LexisNexis. Insurance companies use this database to assess the risk of insuring a property. An adverse CLUE report means that there have been previous property insurance claims filed on the home, which indicates a higher risk of future claims. Insurers may reject a homeowners insurance application if there is an adverse CLUE report.

Tom and Tammy Evans Were Ready to Purchase a Home