What is the significance of running a Property LIS for applicants?

Running a Property Loss Information Service (LIS) report is significant primarily because it checks the applicant's insurance history. This report provides insights into past claims associated with a property, allowing insurance underwriters to assess the risk profile of insuring that property. Having this information is crucial, as a property with a history of numerous or severe claims may lead to increased premiums or the denial of coverage altogether.

Understanding an applicant's insurance history helps insurers make informed decisions regarding their policies, ensuring they only take on properties that align with their risk management strategies. This function does not directly evaluate the market value of the property, ensure compliance with state regulations, or identify a homeowner's creditworthiness, which are reasons why those other choices would not be as appropriate for the significance of running a Property LIS.