Imagine this: You’re kicking back at a BBQ as your friend is chuckling, nearly slapping his stomach, as he tells you a story of a recent insurance claim he submitted–a claim submitted at the expense of his homeowner’s insurance company, whom he recently fooled.
Sometimes these stories seem good for a few laughs, or even a few gasps, but is it really a laughing matter? You can be the judge of that….
We’ve all heard the stories of the people who have been caught in various insurance claim scams. However, most of us don’t realize that these hijinks are actually driving up the premiums that the rest of us, good and honest types, pay monthly. Check out the HBF home owners insurance page today to find out more about coverage to suit your needs.
All insurance companies are businesses and just like any business out there on planet earth, it needs to turn a profit in order to stay in business. So, what happens when too many people cheat the very delicate, risk-taking, business that is the insurance business? Insurance companies have to recoup their losses and they do so by raising the premiums on the rest of us.
Previous studies over the years have stated that insurance fraud has cost the insurance industry a whopping $20 billion a year and rising. It seems like an extravagant number, but there are some substantial lengths people will go to, in order to rack up sometimes hundreds of thousands of dollars in fraudulent insurance claims.
Here are a few stories for you:
They Stole My Painting…Twice!
A homeowners’ insurance policy holder in San Antonio submitted two separate claims that a high-dollar painting was stolen from his home; he submitted on in English and one in Spanish. Apparently, he assumed that this particular insurance company wouldn’t have any Spanish-speaking employees and that he could get away with twice the cash! We think he forgot that he lived in… San Antonio.
My Piano… It Flew!
After Katrina hit New Orleans, one homeowners’ insurance company reported having received a claim for the loss of a grand piano—the claim stated that they had no way of documenting the damage, because the hurricane winds must have whisked it away! Upon further investigation into the matter and a few discussions with prior visitors to the home, it was discovered that no such piano ever existed.
If You’re Going to Commit Fraud… Be Nice To Your Ex-Husband
After a home break-in, a woman in California claimed to have had a piece of jewelry purchased for her by her ex-husband stolen from the house—she valued the piece at $25,000. During the investigation, the insurance company naturally spoke with the ex-husband and his only input was to advise the investigators to attend any social function his ex-wife attended. Upon doing so, it was discovered that the woman never left home without her prized jewelry.
These are funny stories, but with insurance rates climbing, and the state of the economy far from thriving, is this something that we can really afford?