Fraud Awareness
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Insurance Fraud
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Claims Fraud
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Insurance Claims Fraud

There are simple ways to avoid facing situations where there's an opportunity to commit homeowners insurance fraud.

  • Make sure your homeowners' insurance policy is up to date and your coverage is adequate.
  • Review your policy and understand what is and isn't covered and under what circumstances. Your insurance agent can help you with this.
  • In all aspects of your dealings with the insurance company - from application to claims - make sure all the information you provide is accurate and truthful

What can you do to prevent becoming a victim following a Catastrophe?

Catastrophes usually bring out the best in most people, but also bring out the worst in others. If you have just suffered a loss due to a natural catastrophe, you don't want to become a victim again. After each natural disaster, the area affected is inundated by outsiders, including insurance adjusters, emergency/medical personnel and assistance organizations. However, along with these support teams, unscrupulous building repair firms swoop down on the community. The following can help you from becoming a victim:

  1. Beware of high pressure sales people. Don't be rushed into signing a contract. Instead take the time to obtain written estimates from more than one vendor.
  2. Know who you are dealing with. Obtain references, check with the Better Business Bureau, review licenses and ensure that the vendor is properly insured.
  3. Don't make large down payments. Down payments are customary, however, unscrupulous vendors will disappear after receiving the down payment or performing limited work.

How can you avoid becoming involved in insurance fraud following a Catastrophe?

Catastrophes provide an environment for crimes of opportunity. Your insurance policy provides for payment to you for damage to your property by covered perils. It does not provide for payments for fictitious or inflated damages. After a catastrophe, unscrupulous service vendors and/or company claims adjusters may approach you with schemes to put you in a better position than you were before the catastrophe event. These schemes usually involve kickbacks to the vendor or claims adjuster. Sometimes these schemes only involve the vendor and the claims adjuster without the direct knowledge of the policyholder.

Insurance fraud is a crime. If you are getting something for nothing, it is a good indicator that something may be wrong. Don't get involved with these schemes.