False Insurance Claim Allegation Prompts Homeowner’s Fight to Clear Record

A Kennesaw homeowner’s nightmare unfolded when she discovered someone had filed a fraudulent insurance claim for fire damage on her property, triggering a prolonged struggle to clear her record and prevent increased insurance premiums.

The incident began in March when Renee Arbogast, who had completed extensive home renovations two years earlier, learned that her husband had received an alert about an insurance claim for fire damage at their home.

“My initial thought was, is there a fire?” Arbogast recalled. “I asked, where are you? And he said, ‘I’m at the house. There’s nothing here.'”

The couple quickly realized there had been no fire at all. For weeks, Arbogast repeatedly contacted her insurance company, urging them to investigate the claim as fraud. According to her, the insurer never dispatched an adjuster to verify whether a fire had actually occurred at the property.

The Georgia Office of Commissioner of Insurance and Safety Fire launched an investigation, discovering that Arbogast’s insurance provider “did not confirm the property owner’s name” when accepting the claim. Investigators concluded that “if this information had been verified, a claim would not have been initiated.”

Unfortunately, by that point, the false claim had already been recorded in the Comprehensive Loss Underwriting Exchange (C.L.U.E.), a nationwide database accessible to virtually all insurance companies in the United States.

The C.L.U.E. system stores information whenever consumers start insurance claims, are denied coverage, or receive claim payments. These reports remain active for up to seven years, and inaccurate or fraudulent entries can significantly impact insurance premiums.

“You could wind up paying hundreds or even thousands of dollars more in premiums unfairly,” explained Michael DeLong, an advocacy associate with the Consumer Federation of America.

The consumer watchdog organization notes that the frequency of flawed C.L.U.E. reports remains unclear because the insurance industry restricts access to this information, sharing it only with other insurance companies.

The problem isn’t new. In 2003, California’s former insurance commissioner highlighted errors in the database after his own consumer services chief was denied homeowners insurance five times due to multiple inaccuracies in his record.

“Insurance companies have a fairly long history of treating consumers poorly,” DeLong said. “If there is a mistake that is against the consumer, they may not make fixing that a high priority.”

After months of persistent advocacy, Arbogast finally succeeded in having her insurance company remove the false fire claim from the C.L.U.E. database. She decided to share her experience publicly to raise awareness about a situation most homeowners don’t know could happen.

“Most people don’t have the resources,” Arbogast said. “For us to advocate in this way has cost us so many thousands of dollars alone. I want to protect other people from this happening.”

Insurance experts recommend that consumers regularly check their C.L.U.E. reports for accuracy. Under the Fair Credit Reporting Act, individuals are entitled to a free copy of their report annually. Homeowners can request one through the LexisNexis consumer center online or by calling 866-312-8076. Prospective homebuyers interested in a property’s claim history should note that only the current owner can request the report.

If errors are discovered, consumers can contact the LexisNexis Consumer Center at 888-497-0011. The company will verify information with the reporting insurance company and provide results within 30 days. Consumers can also add explanatory notes to report entries.

Georgia residents experiencing similar issues can file complaints through the state’s insurance and fire safety office via their consumer complaint portal or by downloading and mailing a form.

The case highlights the importance of vigilance regarding insurance records and the potential financial consequences of uncorrected errors in industry databases. Consumer advocates recommend regular monitoring of these records, much like checking credit reports, to prevent unexpected premium increases based on inaccurate information.