What
is fraud?
Webster's dictionary defines fraud as "a deliberate
deception for unlawful or unfair gain."
What
is homeowners insurance fraud?
Though one private person’s definition of fraud often doesn’t
match his neighbor’s, insurance companies have a clear understanding
of what exactly constitutes fraud. The list below is by no means exhaustive,
but is put forth to share with you what constitutes fraud from the
perspective of an insurer. The home insurance industry considers the
following transgressions fraudulent:
- Inflates
the true amount of a claim.
- Fakes
a theft or burglary.
- Engages
in arson.
- Submits
a false claim.
- Stages
an accident.
- Asks
a contractor for an estimate that covers the amount of the deductible.
- Makes
a claim for a loss that was previously paid by another insurance
company.
- Receives
undeserved compensation from an insurance company.
The
Homesite Fraud Detection Unit (FDU)
Since its inception, Homesite has played an active role in helping
to combat homeowners insurance fraud with the creation of The Homesite
Fraud Detection Unit (FDU). The FDU's sole purpose is to investigate
and combat this very serious and expensive crime. Specific duties
of the Homesite FDU are to:
- Conduct
investigations of suspected insurance fraud.
- Respond
to complaints of insurance fraud.
- Report
known or suspected incidences of insurance fraud to appropriate
law enforcement agencies and the National Insurance Crime Bureau.
- Promote
education and awareness of insurance fraud and its consequences.
back to Claims
continue