Homeowners insurance fraud happens when a false, inflated or misrepresented claim is submitted on a homeowners or renters policy for financial gain. Just like auto insurance fraud, it can drive up the cost of insurance and repairs. It’s illegal and everyone can help fight it.
Home insurance fraud can take many forms, whether it’s a dishonest homeowner intentionally damaging their own house, contractors who inflate the cost of repairs or a homeowner reporting stolen items that didn’t exist in the first place. Plymouth Rock Assurance wants everyone to help recognize and report home insurance fraud.
Common Forms of Homeowners Insurance Fraud
• Overstating the value of items stolen in an actual home burglary or theft from a vehicle
• Claiming that old damage actually happened during a new incident
• Making a claim after purposefully damaging property
• Staging a burglary or break-in, or faking a theft or property damage
• Making a claim for a loss that was already paid by another insurer or by a previous claim
• Asking a repairman to increase an estimate or bill to cover the home insurance deductible
• Fabricating repair bills or receipts
• Not reporting on an insurance application that a home is being used as a rental or in a commercial business
• Staged fires, where an individual sets fire or has others set fire to their own home. This is not only illegal, but also very dangerous
Report Your Suspicion
If you suspect homeowners insurance fraud, medical insurance fraud or another type of insurance fraud, please report it. There are several ways you can report fraud, by either contacting authorities or organizations devoted to fighting it. Read more information about the importance of reporting insurance fraud.