Home and Renter’s Insurance Fraud

What is it?

A type of property fraud, home and renter’s insurance fraud occurs when a policyholder either exaggerates or falsifies an insurance claim for losses suffered to their home or property. Insurers, builders and contractors can also commit this type of fraud by filing false claims, misinforming policyholders or charging/overcharging for work that wasn't done.

What does it look like?

Some common home and renter's insurance fraud schemes:

  • Fake burglary or theft claims
  • Falsely reporting pre-existing damage as vandalism
  • Arson for profit
  • Contractors who ask for a blank check or payment in cash

How can you help prevent it?

  • Claim only the damages that occurred as a result of the incident being reported
  • Provide the exact value of lost or damaged items
  • Get more than one written estimate for repairs
  • Before hiring a contractor to make repairs, contact your insurance provider to make sure that the work is covered by your policy
  • Always use a licensed contractor
  • Never pay a contractor in full before work is completed