7 min read
Jan 20, 2026
What Is A Letter Of Experience And Why Do You Need One?
What Is A Letter Of Experience And Why Do You Need One?
If you are shopping for new homeowners insurance after being dropped, non-renewed, or having a lapse in coverage, you may be asked for a “Letter of Experience.” While the name sounds formal, the document is simple—and it can be the key to unlocking better rates and eligibility.
What is a Letter of Experience?
A Letter of Experience (LOE) is an official document from your previous insurance carrier that verifies your claims history (or lack thereof) and the dates you were covered. It acts as a “report card” for your insurance history.
It typically includes: Policy dates (start and end), reason for cancellation (if applicable), list of claims filed (dates, amounts paid, cause of loss), and policy number and insured address.
Why Do Insurance Companies Ask For It?
When you apply for new insurance, carriers want to know how risky you are to insure. They usually check a database called CLUE (Comprehensive Loss Underwriting Exchange), but CLUE reports aren’t always up to date or accurate.
An LOE provides definitive proof. If you had a lapse, it proves when coverage ended. If you had a claim denied, it clarifies that $0 was paid out. If you have been claim-free, it proves your good standing.
When Will You Need It?
You will likely need an LOE if you are switching insurers after a lapse in coverage, you are disputing a claim that appears on your record, you are moving from a force-placed policy back to a standard market, or you have a gap in insurance history that needs explanation.
How To Get One
Call your previous insurance agent or carrier’s customer service line. Ask specifically for a “Letter of Experience” or “Claims Experience Letter.” They are required to provide it to you, usually within a few business days. It is free.
Why It Matters for Force-Placed Insurance
If you are currently on force-placed insurance, you likely have a gap in your standard insurance history. When you try to leave the force-placed policy, new insurers will see that gap as a red flag. An LOE from your carrier prior to the force-placed policy helps demonstrate that you were a responsible homeowner before the lapse occurred, which can help you qualify for standard rates again.
Frequently Asked Questions
Is a Letter of Experience the same as a CLUE report?
No. A CLUE report is a database record shared among insurers. An LOE is a direct verification from a specific carrier.
Does it cost money to get?
No. Insurance carriers provide this document free of charge upon request.
How far back does it need to go?
Most new insurers want to see history for the last 3 to 5 years.
Related Posts
How to remove force placed homeowner insurance
A Simple Exit Plan That Often Works
Once you understand how you arrived at force placed coverage, the next goal is usually to replace it and restore full protection.
01
Secure New Coverage
Shop for a policy that fits your specific situation, whether through standard insurers or high-risk "excess and surplus" markets.
Ensure your new coverage restores the personal property and liability protection that force-placed policies often omit, and verify that dwelling limits are based on replacement cost rather than just your loan balance.
02
Submit Proof
To cancel the lender’s policy, you must provide a complete proof of insurance package.
This typically includes a full declarations page and the servicer's specific mortgagee clause—including your loan number—to prove your coverage meets the minimum requirements of your mortgage contract.
03
Confirm Cancellation
Once your servicer accepts the proof, they will typically cancel the force-placed policy and issue a pro-rated refund to your escrow account.
Monitor your account to ensure the refund is applied and that your monthly mortgage payment is recalculated to reflect the lower insurance costs.