Wednesday, October 27, 2010

Home Insurance Fraud on the Rise



With the global economic crisis in full swing, insurers are detecting record amounts of fraudulent claims with home insurance policyholders the chief offenders.

Research from the Association of British Insurers found that there are 2,000 fraudulent insurance claims every week worth an estimated £14million. Dishonest claims on home insurance are the most common with 55,000 false or exaggerated claims detected.

In a separate survey around one in five UK adults admitted they would not rule out making a fraudulent insurance claim in the future as recession thrives. This could prove costly for honest home insurance policyholders however, with dishonest claims estimated to add around £40 to a typical home insurance premium.

Cheating on your insurance does not pay. Those that are caught face higher premiums or potentially not even being able to get insured at all. Furthermore it can affect their chances of obtaining any form of credit and give the worst offenders a criminal record.

With these claims on the rise, home insurance providers are making increased efforts to crack down on fraud. So if you're an honest policyholder who needs to make a legitimate claim how can you avoid accusations of bending the truth?

The first step is to prepare for claims in advance. Take photographs of items in your home and store receipts in a safe place. Keeping an inventory of all new goods held within your property will help reassure a provider that the items really were in your possession before the insured event.

Make sure you contact your home insurance provider as soon as the insured event occurs and follow its claims procedure to the letter. Generally you will be asked not to repair or replace items and to hang on to damaged goods as they may need to be assessed.

Pay attention to the level of home insurance cover you have in place including the policy limits on individual items to ensure your cover is sufficient. If you're not happy with your policy compare home insurance online with a comparison website and find a more appropriate deal.

Pay attention to the level of home insurance cover you have in place including the policy limits on individual items to ensure your cover is sufficient. If you're not happy with your policy compare home insurance online with a comparison website and find a more appropriate deal.

9 comments:

  1. hahaha at the comic

    and great info in the post thanks for the love on my blog too

    ReplyDelete
  2. Thank you for the information!

    ReplyDelete
  3. Strange. I don't understand why people make such kinds of frauds that indirectly affects the other people who remains true with the insurance company. Cheating does not pay rather those that are caught have to face higher premiums or not even being able to get insured at all.
    product liability insurance

    ReplyDelete