Theft As Part Of Homeowners Insurance FraudAlthough many people forgo it in an effort to save money, homeowner's insurance really is one necessity in life. It protects the most important investment most people will ever make. Homeowner's insurance protects in the event of a fire or theft and when someone doesn't have the proper coverage it can mean disaster. Along with the protection that this type of insurance affords, there is another darker side to homeowner's insurance. Homeowners insurance fraud is a very real and serious problem.
There are a few specific types of homeowners insurance fraud that seem to be more prevalent than others. The first involves a genuine claim that is exaggerated by the homeowner in an attempt to gain financially from their loss. This can occur with either a theft or as the result of a fire. If a break and enter happens in the home and several articles are stolen, depending on the insurance policy, the homeowner is expected to file a claim with the insurance company. Most of these homeowners claims are valid. However, some homeowners view a situation like this as an opportunity to gain financially. Instead of detailing everything that was taken exactly as it was, they instead add extra items on that they never actually owned. It is virtually impossible for the insurance company to proof the claim isn't valid. Another variation of this occurs when the homeowner takes it a step further and arranges for the burglary to occur. In this instance the homeowner is working in cahoots with someone else. That person enters the home and not only steals certain valuables but also creates the illusion of a robbery. Furniture may be strewn about, glass broken and the lock tampered with. The crime is investigated and a police report is filed. The homeowner then submits a claim to their homeowner's insurance company. This type of property insurance fraud can be difficult to detect and even more challenging for the insurance company to prove. When a homeowner claims for damages to their property as a result of a fire this is typically a genuine gesture. Most people could not even imagine arranging for their property to be torched in an effort towards monetary gain. However, for someone facing financial hardship or someone who views this as a quick way to make money, they can easily hire another to do it for them. This type of property insurance fraud will likely result in the homeowner claiming a large amount for the home contents even though they likely moved anything of extreme value out beforehand. Although there is no solution that will erase this problem permanently, many homeowners insurance companies are now realizing that they need to fully investigate all suspicious claims. Every person who pays for homeowner's insurance has to bear the cost burden for all these fraudulent claims. |