Cost Of Home Owners Insurance Fraud
| Home owner’s insurance fraud is when a person knowingly concocts a loss and submits a claim under a homeowner’s insurance policy. |
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Sometimes, there could be a loss to the homeowner but the value of the claim submitted is more than what is sustained.
This is also a homeowner’s insurance fraud. Basically it is fraud to use false, incomplete or misleading information. This information can be a receipt, repair estimate, statement of loss, legal deposition or even a photo.
In addition, the person helping the home owner to prepare false documentation to support his false insurance claim is also deemed guilty and this is crime whether the claim is paid or not.
The unfortunate thing is that there are no figures available for insurance fraud but insurance fraud is rather widespread. Ultimately it is other policyholders that suffer because they have to pay large sums in higher premiums. It is believed that one in every homeowner’s insurance claim is fraudulent.
Unfortunately home owners’ insurance fraud just adds pressure on premiums. Insurance companies refuse to label home owners as criminals but they do agree that many claims are inflated or exaggerated. Some examples of home owners’ insurance fraud are as follows:
- Staging a fake burglary or break-in
- Overstating the value of stolen items after a burglary
- Lying about the extent of damage and cause
- Intentionally damaging own property
- Making a second claim for the loss after it was already paid by another insurance company
- Asking the repairman to add the deductible to the house repair estimate
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