How Previous Insurance Claims by Previous Owners May Affect You

*Updated November 18th, 2025

You go out and buy homeowners insurance, thinking the only factors affecting your premium are those that pertain to you. You probably figure the agent will check your credit history and look at various aspects of the home to determine your home insurance rate.

This is all true, but it’s not all-inclusive. If you buy a pre-existing home, the behaviors of the previous owners pertaining to their insurance claims could have a major effect on your insurance premiums and future homeowners insurance coverage.

What Do Previous Owners Have to Do With Your Premiums?

When an insurer assesses the risk you and the home you want to insure pose, they look at the claim history of the home itself—not just yours. Insurance companies have access to the Comprehensive Loss Underwriting Exchange (C.L.U.E.) to get this information. This LexisNexis database includes information regarding the past five to seven years at the property, regardless of the fact that you did not own it at the time.

If an insurer sees a large number of past claims or prior claims during that period, they may consider the property a higher risk. Insurers may view the home as risky to insure, which can affect your insurance and potentially lead to higher premiums or even denial of a new policy.

One of the biggest red flags for insurers is any type of water damage. This is one of the costliest types of claims for insurance policies. If there is a history of frequent claims, especially more than one water-related loss, it may not bode well for you as the new owner and could impact your rates.

Non-Claims Can Hurt Your Chances Too

Perhaps even more alarming is that a non-claim can still appear on the home’s insurance record and affect your ability to get homeowners insurance. Let’s say the previous owners called their agent to ask about a potential insurance claim. The owners didn’t actually file one—they simply asked a question.

That simple conversation may have created an “inquiry” in the insurer’s system, beginning the claims made process. If the owner later decided to pay out of pocket, the inquiry may have been closed, but it still shows up in the home’s homeowners insurance claims history. Even these minor notes can raise red flags, especially if the home already has multiple claims.

If the owner had any real claims afterward, it could make it more difficult for you to get coverage, particularly if you’re in a high-risk area for natural disasters or theft.

Luckily, you can (and should) do your own research before buying the home.

Get a CLUE Report

You can gain access to the CLUE report for the property you intend to purchase before you close on it. However, you’ll need to get it from the seller—until you own the home, you’re not entitled to a copy. But you can request that the seller provide the report as a condition of your offer.

The report will not provide personal information about the seller. Instead, it sticks to the facts regarding any homeowners insurance claims, past claims, or inquiries. You can see:

• What claims occurred

• Whether they were extensive claims

• How long ago they happened

• Whether the home has a history affects pattern that could affect your insurance

If the issues occurred within the past five years, they may be a concern. If they’re older, you may still be able to get insurance without issues from traditional insurers.

The report also helps you assess whether the seller practiced good home maintenance or if the home has recurring problems that could make obtaining insurance difficult.

Making a Decision

We highly recommend checking the CLUE report before deciding whether or not to buy a home. Not only will it help you determine the potential cost of homeowners insurance or whether you’ll even be able to secure standard homeowners insurance, but it will also help you determine if it’s a sound investment.

If the home has filed too many claims, especially involving personal property, liability claims, or water damage, think twice. Ask yourself:

• What were the types of claims?

• Were they preventable or due to poor home maintenance?

• Were they caused by natural disasters or a high-risk area?

• Do they indicate deeper issues that could lead to higher future insurance rates?

Keep in mind: Even a home with a clean slate on your end—meaning you’ve never filed a claim—can still inherit issues from a previous owner’s claims or the home’s claims history. Insurers use these reports to assess risk, and in some cases, a property’s record can make it difficult to get coverage.

If you encounter problems, some states offer a Fair Plan or Fair Access to Insurance Requirements (FAIR) program through your state insurance department. These provide limited coverage for homeowners who can’t get home insurance through standard insurance carriers.

The fact that previous owners can have an impact on your homeowners insurance premium is a big deal. You’ll need insurance as long as you live in the home, so it’s worth ensuring you get the coverage you need at a reasonable price.