Information on Home Insurance Fraud

Insurance fraud takes place when a person lies in order to claim money what is not due to him. The common types of insurance frauds are Medical, homeowners and auto. Home Insurance protects the investment made by you on your home. It provides protection in event of fire or theft. But many people are involving themselves in the fraud of the home insurance. Home Insurance Fraud is when a person deliberately claims for more loss than actual. Even helping others and preparing wrong documentation to support false claim makes you responsible for Home Owners Insurance Fraud. Whether the claim is given by the insurance company or not, this is still a crime.
Home Insurance Fraud is much simpler since insurance policy insures the goods of the home also. At the time of claim they require the receipt for the goods purchased by you for your home. The receipt can be easily taken from nybody.

Types of Home Insurance Fraud

• Staged Fires: People set their homes on fire on their own and try to show it as accident. Further, they ask for claim from Insurance companies. While filing the claim instead of mentioning correct number of items, many a time’s people intent to take claim for extra items, which they never owned. It becomes difficult for the insurance company to proof that the claim being made is not valid. The insurance company has to pay the claim for the home and also for goods that were damaged in the fire. This fraud on home insurance claim is very common and many people are charged for this every year.
• Vandalism: Person stages as if somebody broke into his house and destroyed several items and may be stole few of them. The person reports the crime in police and hence investigation is carried out for the same. Further the person submits claim to the insurance company. To the insurance company it appears as a real act and they pay to the person insurance check for the damaged items. This type of fraud is difficult to be identified.

How to avoid Home Insurance Fraud

• In case you suffer loss by fire or theft, do not use this as a chance for financial gain. You should contact insurance company and get the claim as per policy. You should provide original documentation of the goods.
• In case somebody else asks you to help him in insurance fraud you should stay away from that. If you are caught helping others you may also be in trouble.
• You should never see the claim as moneymaking chance. If you have to get a claim contact the insurance company and ask for what is actually entitled for your policy.