Home Owners Insurance Fraud is Continuing to Grow!

Fraudulent activities are on the rise in US. This awful fact is one that has gathered millions of dollars in debt for several financial institutions, corporations and consumers. An analysis is happening which could shed light on fraudulent crimes relating multiple banks charging more prices for homeowner insurance rates. Right from credit card to absolute identity theft, people are finding themselves prey to a range of sophisticated and old fashioned cons.

Many of the cons usually employed today evolve around insurance. One variation of this that has recently received more attention is home insurance fraud. This happens whenever anyone purposely submits a fake claim or cook up a loss under an homeowners insurance policy that is for more than the real loss bore. According to law, using incomplete, false or misleading information to support such a claim comprises fraud. For example, submitting fraudulent receipts, legal depositions, home improvement estimates and even photos constitutes as fraud. Moreover, if you help another individual to prepare and produce staged documentation in order to support a fake claim makes you culpable of home insurance fraud.  Whether the insurance agency pays the claim or not, this is an offense and you may be blamed completely for part.

Forms of Homeowners’ Insurance Fraud

  1. Staged Fires- This is not only wrong but risky as well. Several scam artists have been paid thousands of dollars for setting fire to their own homes. More often, the homeowners property insurance company will pay the left over balance of the lawbreaker’s mortgage which includes any personal items that were damaged or lost in the fire.  It’s terrible to think some people would in reality bend down so much to pull off a scam, yet hundreds of individuals are found guilty for it every year.
  2. Vandalism – This is yet another form of home insurance that lacks ethics.  A con artist stages a break in and pays one or more people to make an imposition. The participants damage several precious items that are covered by the sufferer’s insurance company. The crime scene seems to be a case of “home evasion”. In the mean time, the scam artist gets a heavy insurance check and payoffs the perpetrators for their role in the scam.

There were a total of 31 acts issued in late 2011. The insurance policies were supposedly as much as 10 times as costly as the original plans homeowners possessed.  Many of these incidents included consumers trying to get mortgage aid.

Fighting Homeowners’ Insurance Fraud

Despite the fact that most of the home insurance claims are filed for genuine losses, a few of them are used as an opportunity for financial gain. In case you go through losses by physical incident of fire, way of theft, without delay contact your agent and obtain every cent entitled to you under your policy. Make sure that you provide only the documentation that you have in your possession and materials that can be checked. Moreover, you should always avoid creating fake documentation and analyze all of your insurance statements to guarantee that your policy is abreast and precise.  To make easier, the best option is to compare home insurance quotes.

Anyone asking you to take part in home insurance fraud is someone you should refrain from. Remember in few states homeowners’ insurance fraud can put you behind bars for a long time.

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