Homeowner Battles Insurance Fraud After False Fire Claim Filed Against Her Property

A Kennesaw, Georgia homeowner found herself caught in a months-long struggle to clear her name after discovering someone had filed a fraudulent insurance claim for fire damage on her recently renovated home.

Renee Arbogast’s ordeal began in March when her husband received an unexpected alert about an insurance claim filed for fire damage at their property—two years after completing extensive renovations.

“My initial thought was, is there a fire?” Arbogast recalled. She immediately contacted her husband who confirmed he was at their undamaged home. “There’s nothing here,” he assured her.

Despite the obvious fraud, Arbogast faced significant resistance when reporting the issue. For weeks, she pleaded with her insurance company to investigate the claim as fraudulent. According to Arbogast, 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 eventually launched an investigation into the matter. Their findings revealed serious verification failures by the insurance company, which “did not confirm the property owner’s name” when accepting the claim. The investigation concluded that “if this information had been verified, a claim would not have been initiated.”

By then, however, the damage was already done. The false claim had been recorded in the Comprehensive Loss Underwriting Exchange (C.L.U.E.), a database accessible to nearly every insurance company nationwide. This database tracks insurance claims, coverage denials, and claim payments, with records remaining active for up to seven years.

The implications of erroneous C.L.U.E. reports can be financially devastating for homeowners. “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.

Industry transparency regarding C.L.U.E. report accuracy remains a significant concern. The consumer watchdog organization notes that it’s difficult to determine how frequently flawed reports are submitted because the insurance industry maintains exclusive access to this information, sharing it only with other insurers.

This isn’t the first time the C.L.U.E. database has come under scrutiny. In 2003, California’s former insurance commissioner highlighted errors in the system after his own consumer services chief was denied homeowners insurance five separate times due to inaccuracies in the database.

“Insurance companies have a fairly long history of treating consumers poorly,” DeLong noted. “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. Her motivation for sharing her story stems from concern for other homeowners who might face similar situations.

“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.”

Consumers should be aware of their right to access their own C.L.U.E. reports. Under the Fair Credit Reporting Act, everyone is entitled to a free copy of their report. Requests can be made through the LexisNexis consumer center online or by calling 866-312-8076. Potential homebuyers interested in a property’s claim history should note that only the current owner can request that property’s C.L.U.E. report.

If errors are found in a report, consumers can contact the LexisNexis Consumer Center at 888-497-0011. The company will verify information with the reporting insurance company and notify the consumer of results within 30 days. Consumers also have the right to add explanatory notes to items in their reports that will appear in all future versions.

Georgia residents wishing to file insurance-related complaints can use the state’s consumer complaint portal online or download and mail the appropriate form to the Office of Insurance and Safety Fire.

As insurance fraud schemes become increasingly sophisticated, consumer advocates recommend regularly checking C.L.U.E. reports as part of routine financial monitoring, similar to reviewing credit reports.