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Understanding Auto Coverage

After my friend got into a pretty significant car accident, I began thinking about ways to prevent the same type of thing from happening in my own life. I started driving safer and working on eliminating issues, and while it was difficult, it really helped me to clear my head while I was on the road. I also opted for a higher auto insurance policy, which I felt would be especially helpful in the long run. Now I can honestly say that my car is covered and I don't worry too much about the ramifications of other drivers on the road. Read this blog to learn more.

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Understanding Auto Coverage

What You Should Know About Homeowner's Insurance Fraud

by Edward Parker

Homeowner's insurance covers you in case of a robbery or if your home and its contents are damaged because of a flood, fire, or a natural disaster. This policy also compensates individuals who sustain an injury in your home. However, you cannot get paid under homeowner's insurance if you commit fraud. Here is some basic information on homeowner's insurance fraud. 

What Is Homeowner's Insurance Fraud?

Fraud occurs when you knowingly submit false information to a homeowner's insurance agent. These false claims are made to secure compensation above the actual losses sustained. In some cases, homeowners go to the extent of fabricating incidents to get compensation.

Home insurance fraud can result in a lawsuit by the insurer. You and anyone falsely claiming injury may also be subject to criminal charges.

What Are the Types of Homeowner's Insurance Fraud?

Fraud on homeowner's insurance may take many different forms. Overstating the value of damages is the most obvious kind of fraud. For example, exaggerating the importance of stolen items in a burglary or lying about the severity of damages after a flood or fire.

Other examples of homeowner's insurance fraud include:

  • Intentional damage to property to make a claim
  • Staging a burglary or faking the theft of valuable items in your home
  • Increasing a repairman's estimates or bills
  • Fabricating evidence, like repair receipts in collusion with a plumber, contractor, or repairman.

What Are the Penalties for Homeowner's Insurance Fraud?

Even though you are acquitted of fraud or your case isn't classified as a felony, being charged with insurance fraud makes it difficult to get a homeowner's insurance policy in the future.

Many home financing agreements include homeowner's insurance in the terms and conditions of the loan. Therefore, if you are being investigated or are convicted of fraud, it will be difficult for you to buy a home. If you are fortunate enough to get homeowner's insurance coverage after a fraud case, your policy will be higher than usual.

What Are Some Ways to Avoid Homeowner's Insurance Fraud?

The best way to avoid homeowner's insurance fraud is to be honest. When responding to questions by your insurance provider about the location and condition of your home, don't withhold any information.

When something happens, and you want to make a claim, reach out to your insurance agent and be honest about the incident. If you get compensated for repairs, perform those repairs. If you make a claim later on and the initial repairs were never done, your insurer may deny your claim. 

Contact a local home insurance service, such as Oliveira Insurance Agency, to learn more. 

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